Perth’s rental market continued to feel the impact of slowing migration trends in the 2015 December quarter, but reiwa.com data shows that a number of sub-regions across the metropolitan area bucked the trend to record stable or positive rent price growth.
REIWA President Hayden Groves said the latest analysis revealed that a good spread of sub-regions were displaying signs of strength in a tougher market.
“While the overall rental market experienced some softening in the December quarter, when we drill down further we see there were a number of pockets where stable or positive rental yields were felt,” Mr Groves said.
Wanneroo South saw its overall median rent price increase $15 to $430 per week in the three months to December. “This is $30 more than Perth’s overall median rent, and represents a 3.6 per cent lift on the September quarter median,” Mr Groves said.
The Fremantle sub-region also experienced positive growth to its median weekly rent price in the three months to December 2015. “The median rent in the Fremantle sub-region lifted by $15 over the quarter, up to $485 per week from $470 in the September quarter – which is an increase of 3.2 per cent,” Mr Groves said.
The median rent was stable in the following sub-regions:
Melville – $450 per week
Belmont – $400 per week
Stirling East – $370 per week
Stirling West – $475 per week
Joondalup North – $420 per week
Mr Groves said Perth’s overall median rent came in at $400 per week for the December quarter, which is steady on the September quarter figure. “When we break this down into house and unit rent prices, our latest data shows house rents dipped $5 to $405 per week in the three months to 31 December, while units came in at $380 per week, down from $395 in the September quarter,” he said.
In total there were 15,779 rental properties leased in the Perth metro area in the three months to December. 24 per cent of those leased in the December quarter were priced within the $351 to $400 price range, followed by 18 per cent in the $301 to $350 price range.
Mr Groves said these price ranges were reflective of Perth’s overall median rent, which had moderated over the last 18 months.
“Renting has become more affordable in Perth in recent times which has presented tenants with a good opportunity to secure a lease at a competitive price.
“We’ve also seen a bigger increase in the uptake of one to two bedroom rentals in the Perth metro area, which suggests that tenants living in share houses recognise they are in a position to improve their living arrangement and secure a lease of their own,” Mr Groves said.
Rental listings in the Perth metro area remain above the long term average, with the most recent listings data showing 9,820 properties available to rent as at 10 February 2016, down from January which briefly saw rental listings move above 10,000.
Mr Groves said 25 per cent of house listings and 22 per cent of unit listings in the December quarter were in the $351 to $400 price range. Further analysis of house rentals in Perth showed that 47 per cent were three bedroom dwellings and 40 per cent were four bedroom properties.
Average leasing days
It took an average of 46 days to lease a rental property in the Perth metro area in the December quarter, which is unchanged from the September quarter. “In terms of houses and units, investors were having to wait an average of 44 days to find a tenant for their house rental, while for units it took around 50 days,” Mr Groves said.