What a year 2015 was for Perth rental properties. Last year was marked by falling rental prices and increasing vacancy rates as the Perth property market adjusted to the fall in the resources sector and subsequent changes to population levels in Western Australia. At the end of December the median rent for a home in Perth was sitting at $400 per week.
Recent figures released by the Real Estate Institute of WA (REIWA) show that the new year has brought with it a stabilising influence, with the overall median rent holding steady at $400 per week. Median house rent has increased 2.5 per cent to $410 per week while median unit rent has also increased to $380 per week, up 1.3 per cent.
In terms of stock levels, there are currently just over 10,100 rental properties on the market, an increase of around 400 properties from four weeks ago and up over 4000 properties from the same time last year. Due to the stock level increase, the vacancy rate has risen from 5.7 per cent in December to 6 per cent in January. If your property is up for renewal soon, we suggest getting in touch with your property manager to decide what action to take concerning rent. It is best to secure a lease renewal sooner to maintain the tenancy.
General Manager Michelle Rigg says that while indications from the Perth rental market as well as Rentwest’s internal data point to rents stabilising it’s important for owners to be realistic about rent pricing. “The market will continue to be price sensitive throughout 2016 which will require quick decisions from owners regarding the marketing strategies,” she says. “We continually analyse all aspects of the Perth rental market to recommend strategies that will help lease property quicker. Our goal is for the lowest vacancy rate possible and that is something our team works hard to provide.”