It is no secret that the current Perth rental market is tough but if you want an in-depth look into the contributing factors – keep reading!
The vacancy rate in Perth is sitting steady at around 0.9% and rent increases are currently averaging $20 per week more as compared to December 2020. The limited supply of available rentals has resulted in an upward pressure on rents – with the median rent increasing from $350 per week to $380 per week.
WA was the only state nation-wide to receive a record number of rental enquiries in March 2021. Rental enquiries were up 76% whilst property views were up 15% from last year. These statistics surpassed the January 2021 rental season peak.
Between February 2021 to March 2021, Real Property WA had an average of 1,845 views on www.realestate.com.au. with 77 enquiries per property. This contributed to an 8.34% share of the total market property views in Perth on www.realestate.com.au.
Damian Collins, the president of the Real Estate Institute of Western Australia (REIWA), said “There is very little available rental stock on the market and those people who are actively looking for somewhere to rent are finding it very difficult to secure a place to live.”
There is a strong sense of urgency and feeling of helplessness amongst renters. Some are struggling to find housing amidst our property shortage. But some long-awaited relief is coming.
Due to the large number of grants offered to First Home Buyers by the State Government, tenants are taking up the opportunity to purchase their home thus leaving the Perth rental market. However, as we know the building process can take anywhere from 6 months to a year. This process will be slow but steady and rewarding path, both for past tenants and future tenants alike.
With such positive market conditions and high market demand for landlords in WA, we will hopefully see more investors looking to take advantage of this. This will help boost the available supply of rental properties. It will also help to regulate demand and therefore keep rent increases at a reasonable level.
Did you find this post interesting? Are you a new investor entering into the Perth rental market? To find out more about the Perth rental market and how we can help you, please contact Real Property WA today for an opportunity to experience the Real Property difference.