Local Tenants Ready And Waiting As Tight Rental Market Continues
Perth’s rental market has laid claim as one of the tightest in the country, amid historically low vacancy rates and extraordinarily high rental demand.
Mont Property Business Development Manager Nicholas Cole said the strength of the local rental market had continued on the back of sustained property growth and record low vacancy rates; and signalled July as a record month for Mont’s property management team.
“Although the pressure has eased slightly with a recent increase in vacancy rate to 1.2% from .9%, there is still high demand throughout all price brackets and in particular the lower end of the market,” Mr Cole said.
“We have had incredible interest in rentals under $350 a week. People are looking for one bedroom and two bedroom properties at that lower end of the market. As well, we have found large family homes between $700 and $900 a week are also highly sought-after.
“We are constantly working with a large number of highly qualified tenants ready to lease.”
CoreLogic’s Hedonic Home Value Index shows Perth’s rental market has seen significant rental price growth across all dwellings in the past year.
In the 12 months to August 2021, rent for houses has surged by 16.6% in Perth, while rental prices for units grew by 14.6%. Perth’s gross rental yields were up 4.3% across all dwellings, the report said.
Nationally, rents lifted 7.7% – the fastest rental appreciation since 2008.
“Rental conditions across Darwin and Perth are the tightest amongst the capitals reflecting low vacancy rates and high rental demand. Both cities saw a substantial reduction in investment activity from 2014, which has likely contributed to the short supply of rental accommodation,” CoreLogic’s research director Tim Lawless said.
The growth in rental return comes as the vacancy rate increased to 1.2% in June – the highest level Perth has seen since August last year. As well, REIWA data shows listings for rent have risen by 5.7% in Perth since the end of March.
REIWA President Damian Collins said while Perth was still a way off the 2-3% figure required for a balanced market, the improvements observed since the end of the rental moratorium in March had been encouraging.
“The increase in listings since the end of the moratorium indicates investor confidence is starting to return,” Mr Collins said.
“This is also backed up by the latest Australian Bureau of Statistics data which shows investor loan approvals in Western Australia increased to $498 million in May 2021, which is 10% more than April 2021 and 209% more than May 2020.”
Mr Collins expected more rental properties to hit the market in coming months with the return of investors and some tenants becoming first homebuyers.
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