PERTH'S median rent has taken a further tumble

PERTH’S median rent has taken a further tumble according to data from the Real Estate Institute of Western Australia. 

REIWA president David Airey said the institute’s preliminary analysis for the June quarter showed the median rent down by $10 to $450 per week. Some areas took a bigger hit with median rent drops of $30. “Renting a house is now typically around $460 per week, while units, apartments and villas are generally around $445 per week,” Mr Airey said.

Mr Airey said the general softening in rents was due to the increase in rental stock which had jumped by almost 30 per cent since the end of last year to 5824 properties. “There is now 43 per cent more rental stock available than the same last year, which has been driven by a downturn in jobs, very little interest from investors and the fact that many tenants have left the rental system to become first home owners,” Mr Airey said.

The vacancy rate has risen to 4.2 per cent, up from 3.2 per cent in June last year. Mr Airey said that while overall rents were down, results were patchy and some areas of Perth had experienced a price rise in the June quarter due to localised demand. “The cities of South Perth ($470), Victoria Park ($470), Belmont ($460), Swan ($430), Kwinana ($400) and Rockingham ($410), all experienced a median rent rise of $10 per week, while Armadale was up by a more modest $5 per week to $410,” Mr Airey said. “Falls were most notable in the western suburbs where a drop of $30 across the board to around $550 per week is common, but agents are reporting much more severe price slashing in high-end rentals. 

“The more expensive, executive properties over $800 per week that were in such strong demand a few years ago, are now very slow to rent and asking rents for these have dropped by up to 25 per cent, according to REIWA members working in the western suburbs,” Mr Airey said. The City of Vincent ($500) dropped $20, as did Fremantle ($530), City of Perth ($550), Wanneroo North East ($460), Stirling West ($500) and Kalamunda ($450). “The southern part of the City of Joondalup dropped by $25 to $500 per week, its northern area fell $15 to $460 per week and the City of Melville dropped $15 to $500 per week,” Mr Airey said.

“If we look at particular areas where the most properties came onto the market, then the south-west region through Cockburn and Kwinana was the stand-out, with a jump in listings during the quarter to 762 dwellings in this general area. “This was followed by Perth’s north-east region though Swan and Kalamunda with a jump to 342 dwellings. This region also experienced the biggest drop in leases signed during the quarter, down by 160 to 995.”

REIWA data indicates that most other areas around Perth saw listings rise between 14 and 17 per cent in the quarter. Mr Airey said that City of Belmont and Shire of Mundaring were the only metropolitan areas where rental listings dropped in number.