Perth Rental Demand Creates Investors Dream
The rental market is on the move in the City of Melville and surrounding pockets with properties to rent becoming harder to find and rents rising.
The vacancy rate across Perth was recently reported as having dropped to just 1.6%, the lowest it has been since March 2008 according to the Real Estate Institute of WA (REIWA), and the evidence is that these changes are also being felt locally.
Median rents for houses in Applecross for example, are now $613 a week for the June quarter with just 22 on the rental market compared to $563 for the corresponding period for the year prior when 27 houses were listed as vacant.
Alfred Cove has seen the biggest change over 12 months. In the June quarter there were just three houses to rent for a median rent of $800 a week, compared to the same time in 2019 when there were six for rent at a median rent of $430.
Attadale had the most houses to rent for the period with 25 vacant at a median rent of $600 a week. This time last year, rents were a cheaper $590 a week even though there were fewer properties on the market.
Nicholas Cole our Business Development Manager said the influx of expats returning to Western Australia from eastern states and overseas during the Covid-19 pandemic had put a lot of pressure on the rental market.
“Over the past few years, there has been a lack of investors in the market and this has caused a supply issue for rental properties causing vacancy rates to be at an all-time low,” Nicholas said.
“The combination of more people returning to Perth and insecurity around jobs means people are also opting to rent until there is some stability in the global and local economy.”
A vacancy rate of three per cent is generally considered to create a good balance between supply and demand with rentals, but the figures have been below this level across broader Perth for the past 21 months.
If you’d like to find out how your local suburb is performing in the current market or considering purchasing an investment property, feel free to contact us so we can help you with your next property decision.