REIWA Perth Rental Market Update

Perth rental market update - December 2019

REIWA analysis shows the upward trajectory of the Perth rental market should continue through 2020 with consistent demand in line with improving population growth and reduced supply the key drivers for this improvement.

Mr Collins said the Perth rental market led the way in 2019, with stable median rents, reasonable leasing activity levels, declining listings and a plummeting vacancy rate to currently sit at 2.3 per cent.

“We are already seeing competition for good, quality stock which means we can expect this to pick up at the start of next year, and continue to gain momentum later in 2020,” Mr Collins said.

Perth’s overall median rent price has held at $350 per week since April 2017 – the longest period of stable rents Perth has experienced since REIWA first started recording rental data in 2001.

“We’re at 32 months and counting of stable median rent prices in Perth. If listings continue to decrease, new build stock continues to decline and leasing volumes remain healthy, we should see the overall median rent price gradually increase,” Mr Collins said.

“Perth currently has the lowest median house value of any major capital city. This combined with strengthening rental conditions and the opportunity to get into good suburbs at an affordable price point, means investors are likely to re-enter the market.”

With REIWA’s 2020 outlook for the Perth rental market positive, an increase in investors looking to take advantage of the favourable market conditions will help boost the available supply of rental property, keeping rent increases to moderate levels.

If you are looking to invest in another rental property please feel free to get in touch as speak to our Director Anita Walker about what features and areas you should consider for the best rental returns.

Anita can be contacted by email anita.walker@peterbruhn.com.au or at the office on 9308 8988.