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Housing Affordability Continues to Improve for Perth Tenants

17 November 2015
Housing affordability continues to improve for Perth tenants, with the latest REIWA analysis showing that rent prices in the metropolitan region fell again in the three months to September. 

REIWA Deputy President Damian Collins said Perth’s overall median rent price dropped $20 over the quarter and $50 for the year to September to sit at $400 per week. 

“When we break this down further we see that the median house rent price is $420 per week, a drop of $10 over the quarter and $30 for the year to September, while the median unit rent price is $395 per week, which is a decline of $5 over the quarter and $35 when compared to the year to September,” Mr Collins said. 

The biggest fall in overall median rent price over the quarter was felt in the Wanneroo South sub-market, which declined $30 to $410 per week, followed by Belmont which fell $25 to $400 per week, and then Stirling East with a $20 decline to $370 per week. 

In terms of houses and units, the Vincent-Stirling sub-region saw the biggest decline in median house rent price falling $40 over the quarter to $510 per week, while Wanneroo South had the sharpest decline in unit rent price falling $50 to $350 per week. 

Mr Collins said the decline in rent prices was having a positive effect on housing affordability for tenants in Perth.

One factor that can be attributed to the decline in rent prices is the significant drop off of migration into WA, with the most recent ABS data showing that the state had seen a net interstate loss in the year to March 2015. 

Mr Collins said the drop off of interstate migration into WA combined with an increase of large scale residential developments in Perth, meant that there would be some short term impacts to rental stock figures which was felt in the September quarter with listings sitting at 8267 and the vacancy rate rising to 5.6 per cent. 

“As more large scale multi-residential developments come onto the market, we will see an increase of rental stock in the short term providing tenants with plenty of choice, however over the long term with population trends forecast to increase, the Perth rental market should adjust,” Mr Collins said. 

What does this mean for Perth investors?

Mr Collins said that while the softening of rent prices in the Perth metro area is a positive development for tenants, it now means that property investors needed to take a refreshed approach to managing and marketing their property. 

“REIWA members are reporting that while overall enquiries had dropped off, well-presented properties at realistic prices are still being leased. They also reported that properties that offer better amenities like air conditioning are in a better position to find good tenants,” he said. 

Mr Collins also advised investors that they may need to be more price sensitive given current market conditions.

“Property investors should speak with their property managers about what is an achievable, realistic rent for their investment in the current market,” Mr Collins said.  << back to news articles
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