Mar­ket for rentals looks more pos­i­tive

Pilbara News - - Property - Hay­den Groves

Al­though Perth’s rental mar­ket has faced its share of chal­lenges in re­cent times, pos­i­tive signs are emerg­ing with list­ing stock start­ing to level out and the me­dian rent price start­ing to steady.

Ad­di­tion­ally, there has been a no­table in­crease in the num­ber of rental prop­er­ties be­ing ten­anted, with leas­ing ac­tiv­ity ris­ing at sig­nif­i­cant rates.

New REIWA data shows there was a 32 per cent in­crease in the num­ber of prop­er­ties leased in Perth be­tween April and May.

Nat­u­rally, the Easter and An­zac Day breaks can at­tribute to a pro­por­tion of this re­bound in ac­tiv­ity, al­though most com­pelling is that leas­ing ac­tiv­ity in Perth in May 2017 was 17 per cent higher than it was in May 2016.

The vol­ume of prop­er­ties leased in May ex­ceeded 4900.

REIWA anal­y­sis shows Perth has never ex­pe­ri­enced leas­ing fig­ures this high be­fore.

Prior to the past few months of el­e­vated lev­els, the only time leas­ing num­bers came close to 4900 was in 2013 when 4223 prop­er­ties were leased in De­cem­ber — 700 fewer than in May 2017.

So if there are more ten­ants leas­ing prop­er­ties than ever be­fore, why is the mar­ket still chal­leng­ing for in­vestors?

In short, it’s be­cause of the quan­tity of rental stock avail­able. The dif­fer­ence be­tween the Perth rental mar­ket in 2017 ver­sus 2013 is there are more prop­er­ties avail­able for rent now than there were back then. Five years ago, list­ings for rent were about 4500, a fig­ure com­men­su­rate with long-term av­er­age lev­els, sig­nif­i­cantly less than the 10,000-plus stock lev­els ex­pe­ri­enced today.

El­e­vated stock lev­els mean Perth ten­ants have plenty of choice avail­able to them, nat­u­rally in­creas­ing the com­pe­ti­tion be­tween land­lords to se­cure a ten­ant, hence the lower rent prices.

It also means those search­ing for a rental have the lux­ury to take their time to view a greater range of prop­er­ties to en­sure they find one that meets all their needs. Land­lords and prospec­tive in­vestors should not be dis­cour­aged though.

There is very good op­por­tu­nity in Perth’s cur­rent rental mar­ket. In fact, you could ar­gue it’s an ex­tremely good time to in­vest in WA prop­erty, given the his­tor­i­cally low in­ter­est rate lev­els avail­able and more af­ford­able prop­erty prices.

In­vestors would be smart to take ad­van­tage of th­ese favourable buy­ing con­di­tions be­fore the mar­ket in­vari­ably turns again.

If you own a rental prop­erty, you have a very good chance of se­cur­ing one of the many ten­ants out there look­ing for a home — pro­vided you list com­pet­i­tively. Speak with your REIWA prop­erty man­ager about what you can do to en­sure your home stands out.

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