Perth’s rental market is surging, and the outlook is very positive for landlords.
A whopping 46 per cent increase in leasing activity in January is “very pleasing” to Real Estate Institute of Western Australia (REIWA) Deputy President Lisa Joyce.
“It’s pleasing to see more confirmation of a recovery in the January findings. Leasing volumes recorded the most notable improvement, enjoying a welcome rebound in tenant activity during the month,” Ms Joyce said.
Data from REIWA shows Claremont, Mosman Park, East Fremantle, Westminster and Nedlands had the biggest increases in leasing activity over the month.
Overall median unit rents also increased, with the suburbs of Bullsbrook, Bull Creek, Attadale, Applecross and Greenfields increasing the most.
Listing volumes continued to slide, reducing to 6,732 by the end of January.
Ms Joyce says this very promising for investors.
“With fewer listings and increased activity levels, competition amongst Perth tenants is rapidly increasing. If the rental market continues on its current upward trajectory, median rents should start to rise in the coming months, which will help entice investors back to the market.”
Realmark Coastal managing director Sean Hughes told WILLIAMS MEDIA families are relocating from overseas to Perth, and West Australians are returning from the east coast, which is fuelling tenant activity.
“We have also seen a high number of applications coming into the office from people who have recently sold their homes and want to rent while they take their time to find their next home.”
Mr Hughes told WILLIAMS MEDIA tenants are playing a competitive game to lodge applications before viewing a property, due to low rental stock.
House price hopes dampened by tightened bank lending
Perth’s rental market recovery has prompted some property observers to predict a house price increase, after four years of declines.
But data from REIWA and CoreLogic shows the median house price declined over the month of January.
CoreLogic’s Head of Research Tim Lawless believes the market will level out towards the end of the year but would be “very surprised” to see any material rate of capital gain return to the market.
Ms Joyce told WILLIAMS MEDIA buyers should make a move now before the market recovers.
“Perth remains very favourable for buyers and investors, however, I would advise those who are thinking about purchasing their first home, trading up or investing, to act soon and take advantage of current conditions before the market starts to recover and prices inevitably rise,” Ms Joyce said.
Credit: The Real Estate Conversation