In their recent analysis of the real estate market across the nation’s capitals, domain.com.au put Perth under the microscope with the following insights.
To buy property in Western Australia is totally different to other parts of Australia and in fact throughout the world.
Perth’s rental market has strengthened over the year, reflected in rent price increases and a falling rental vacancy rate.
Median asking rents for houses in Perth were up 5.7 per cent in the year to September, to $370 per week. This marks a recovery from a rental price trough of $350 in September last year. It is also the strongest annual growth rate in house rents for more than six years, when the mining investment boom was ending. Nonetheless, Perth remains the cheapest capital city to rent a typical house.
Perth units saw a similarly strong rise in rents year-on-year, at 3.3 per cent (although unit rents remained unchanged over the quarter, at $310).
Rents increased the most in Perth’s inner suburbs over the past year, while rents were unchanged in Mandurah.
Perth has seen the second steepest annual decline in the rental vacancy rate behind Darwin. The rental vacancy rate fell by 70 basis points to 2.7 per cent in September 2019.
These figures point to a tighter Perth rental market. While this is not good news for renters, it may be a sign of a broader turnaround in the Perth property market. Stronger population growth, combined with a slowdown in new housing construction, is seeing vacant properties being slowly absorbed. The WA economy is also rebounding, driven by improving conditions in the mining sector.
Republished from domain.com.au, October 2019