Perth rentals amongst Australia’s most affordable
We may have unprecedented demand from tenants and a tight rental market, but Perth is still one of Australia’s most affordable places to rent, new expert analysis shows.
Research by the Real Estate Institute of Australia and CoreLogic indicates that Perth rental prices are among the most inexpensive in the country, despite our exceptionally high demand for rentals, strong growth in weekly rent prices and low vacancy rates.
According to figures from the latest Real Estate Institute of Australia (REIA) Housing Affordability Report, Perth is the second most affordable place to rent in Australia, with 19.8% of family income required to make median rental payments in the June quarter.
Victoria was slightly more affordable for rent than WA with 19.3% of family income required to meet rental payments, while Tasmania was the most expensive for rentals, where the proportion of income used was 29.6%.
CoreLogic’s Quarterly Rental Review, released this month, found Perth was the third most affordable capital to rent in, with a median weekly rent of $533. Rents were cheaper in Melbourne and Adelaide, at $495 and $508 respectively.
Data shows Perth rents have surged by 9.1% in the past year, trailing Brisbane at 13.5%, Adelaide at 12.8% and Sydney at 10.3%.
Perth’s vacancy rate – at 0.6% - is one of the lowest in the nation, indicating extraordinarily high demand for rental properties, along with a strong rental yield of 4.51%, which is second only to Darwin with a staggering 6.26%.
Perth’s western suburbs were the most expensive to rent houses, with weekly rents ranging from $1000 to $1200 a week.
Locally, CoreLogic found Applecross was the 15th most expensive suburb to rent a house, with the median weekly rent surging 12.1% in the past year to $839, while Attadale ranked 27th with 7.6% growth in rents in the past 12 months to a median weekly rent of $780.
For units and apartments, Applecross was the most expensive suburb to rent, with an average rent of $601 per week.
This compares to the most affordable suburb of Orelia, near Kwinana, with units for rent around $307 per week.
Mont Property Managing Director Matthew Podesta said the Perth market was showing great resilience as property markets on the east coast experienced significant lulls.
However, more investors were needed in WA to help generate more rental stock to meet the extraordinary demand.