Rental re­bound

Canning Gazette - - RESIDENTIA­L -

MO­MEN­TUM is slowly build­ing in Perth’s rental mar­ket, ac­cord­ing to Reiwa, with the va­cancy rate fall­ing to 2.5 per cent in the three months to Septem­ber 2019, down from 2.9 per cent in the pre­vi­ous quarter.

Other im­prove­ments were seen, with 172 sub­urbs record­ing an in­crease in leas­ing ac­tiv­ity and the me­dian weekly rent ris­ing in 110 sub­urbs.

Reiwa deputy pres­i­dent Lisa Joyce said Perth’s rental mar­ket ap­peared to be build­ing on the mo­men­tum of the lat­ter half of 2019.

“This is very en­cour­ag­ing, not just for the rental mar­ket but also for the over­all property mar­ket as his­tor­i­cally the sales mar­ket fol­lows the rental mar­ket dur­ing a re­cov­ery,” she said.

While 110 sub­urbs recorded an in­crease in me­dian rent price, 117 sub­urbs saw no change, with data show­ing Perth’s over­all me­dian rent re­mained un­changed at $350 per week.

“With only seven more sub­urbs sep­a­rat­ing the two, we can see how close we are to po­ten­tially see­ing an in­crease in Perth’s over­all me­dian rent price, which will be the first time since April 2017,” Ms Joyce said.

“From a sub­urb level, Made­ley had the big­gest growth for the quarter with an in­crease of $25 per week. Mun­ster closely fol­lowed with a $23 in­crease, then Cannington, Carlisle and Car­ra­mar, which all saw an in­crease of $20 per week.”

There were 13,356 rental prop­er­ties leased in Perth dur­ing the Septem­ber quarter, which was 12 per cent more com­pared to the pre­vi­ous three month pe­riod.

“All six Perth sub­re­gions saw an im­prove­ment in leas­ing vol­umes, with the big­gest im­prove­ments oc­cur­ring in Man­durah (up 21 per cent), In­ner re­gion (up 18 per cent) and South West re­gion (up 16 per cent),” Ms Joyce said.

“At a sub­urb level, River­ton, Dud­ley Park, Suc­cess, Como and Mul­laloo saw the big­gest growth in leas­ing ac­tiv­ity lev­els over the quarter.”

The num­ber of prop­er­ties for rent de­clined 17 per cent, with 6169 list­ings at the end of the quarter.

“From an an­nual per­spec­tive, list­ings are down 19 per cent and on av­er­age are tak­ing six days less to lease,” Ms Joyce said.

“With the va­cancy rate at 2.5 per cent and list­ings con­tin­u­ing to lower, we could see more pres­sure put on the rental mar­ket, which will lead to an in­crease in Perth’s over­all me­dian rent price.

“With the Perth rental mar­ket fi­nally start­ing to re-bal­ance, now is a good time for ten­ants to se­cure their new rental or look into a longer-term lease.”

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