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Perth rents unchanged for fourth month

Posted 3/7/24

The long-term tightness in the Perth rental market has been slowly moderating, with median rents unchanged since March.

According to REIWA’s latest data, the median weekly dwelling and house rents held steady at $650 in June, while the median weekly unit rent was also stable at $600.

REIWA CEO Cath Hart said there were clear signs the rental market was slowly changing.

“Rents have been stable for a number of months, properties are taking longer to lease and the number of listings continues to rise,” she said.

“While the change isn’t reflected in all the data, for example, the vacancy rate remains at a near-record low, our members at the coalface are reporting that conditions are slightly less frenzied than they were previously.

“That said, we aren’t out of the woods yet as WA is still recording strong population growth and new housing completions remain low.

“Today’s numbers are, however, encouraging and on the pathway to a more balanced rental market.”

Ms Hart said the change was due to several factors.

“We’re seeing some ‘self-moderation’ of demand for rental homes as tenant household sizes increase and as people avoid renting where possible,” she said.

“We are also finally seeing an increase in new supply in some areas, and we hope to see this trend continue.”

Despite the continued stability in June, rents remained significantly higher than a year ago.

The median weekly dwelling rent rose 18.2 per cent year-on-year. The median house rent rose 12.1 per cent and the median unit rent rose 14.3 per cent.

“REIWA’s March quarterly update forecast the rate of rent price growth would slow over 2024 and we are starting to see that now, particularly for houses,” Ms Hart said.

According to www.reiwa.com, the suburbs that saw the most growth in their median weekly dwelling rent price in June were Beckenham (up 8.3 per cent to $650), Bayswater (up 5.8 per cent to $635), Maddington (up 5.5 per cent to $580), Fremantle (up 4.5 per cent to $700) and Nollamara (up 4.2 per cent to $625).

Listings for rent 

There were 2,484 properties available for rent on www.reiwa.com at the end of June. This was 3 per cent higher than May and 16.8 per cent higher than the same time last year.

“The number of rental listings has been slowly increasing since February,” Ms Hart said.

“The last time they were at similar levels was April 2022.”

Median leasing times 

Homes leased in a median of 18 days during June, two days slower than May and a year ago.

“This is another indicator of change in the market,” Ms Hart said.

“Earlier this year it took 15 days to lease a home, the slowdown reflects the moderation in demand and suggests slightly less competition for properties.

“However, we are still a long way from the 33 days it took to lease a home five years ago, when the vacancy rate was 2.9 per cent.”

www.reiwa.com data showed the suburbs recording the fastest median leasing times in June were Hamilton Hill (eight days); Eglinton and Nollamara (11 days); Bayswater and Tuart Hill (12 days); Joondanna and Wellard (13 days); and Maddington, North Perth and Balga (14 days).

Read the full article here

Author: REIWA

Source: reiwa.com.au 

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Bailey Devine Real Estate

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