Perth is increasingly a renter's market as rents continue to fall, the latest data from REIWA shows. In the September quarter the rental vacancy rate rose to 5.6 percent.
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," said Collins.
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.
Perth rents are falling in line with migration into WA declining. The most recent ABS data shows Western Australia has seen a net interstate loss in the year to March 2015. 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, said Collins.
"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," said Collins.
Collins advises property investors in Perth to speak with their property managers about what is an achievable, realistic rent for their investment in the current market. "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.