The Perth rental market continued its recovery in the December 2019 quarter, with the vacancy rate declining to 2.4 per cent and average days to lease falling to only 39 days – the fastest since March 2015. REIWA Deputy President Lisa Joyce said the last quarter of 2019 showed Perth’s rental market had strengthened, with signs that it could continue as we head into 2020. “With the number of listings available on reiwa.com falling by 18 per cent compared to December 2018, it is putting pressure on the vacancy rate which has lowered to where it was in March 2019. “This is also impacting the average days to lease making it four days quicker than this time last year. With fewer available rentals on the market, competition amongst tenants has increased requiring them to act faster to secure a lease,” Ms Joyce said. Median rent price Perth’s overall median rent price continued to hold at $350 per week during the December quarter. “The median rent in Perth has been stable for 11 consecutive quarters, which is the longest stretch of stable rents Perth has seen since reiwa.com first started capturing rental data in 2001. “When we drill down further and isolate houses and units, the results for the quarter are very pleasing for landlords, with houses and units experiencing increases in rents compared to the December 2018 quarter. “The median house rent increased $10 per week to $370, while the median unit rent increased $5 per week to $330 compared to the last quarter. If the vacancy rate continues to decline, we can expect rents to gradually increase throughout the year,” Ms Joyce said. reiwa.com data revealed East Fremantle saw the biggest increase for the December 2019 quarter which had a $50 increase to $570 per week. Embleton followed with a $30 increase to $360 and Kingsley saw a $23 increase to $450 per week. Leasing activity There were 12,435 properties leased in Perth during the December quarter, which is down six per cent from the last quarter and four per cent down compared to the previous year. “Leasing activity slowed during the December quarter, as the festive season saw less people searching for properties. This is very common at this time of year, with activity tending to decline in December before increasing again early in the New Year,” Ms Joyce said. reiwa.com data shows the five suburbs to experience the biggest increase in leasing activity for the December 2019 quarter were Ocean Reef (113 per cent), Willetton (53 per cent), Applecross (50 per cent), Cottesloe (42 per cent) and Mount Lawley (38 per cent). “Increased activity in these five suburbs closer to the end of the year suggests that tenants are taking advantage of the lower rent prices in the higher end of the market before the new school year commences, as 20 of the top 50 WA schools are located within these suburbs,” Ms Joyce said. Listings for rent There were 5,616 properties for rent in Perth at the end of the December quarter. “Listings continue to fall, with the December quarter figure down nine per cent on the September quarter and a substantial 18 per cent on the same time last year. “The sharp decline in listings is a driving force behind why Perth’s vacancy rate has improved. With population growth in Western Australia on the rise and fewer new-building projects commencing, rental listing stock is being absorbed more quickly,” Ms Joyce said. More information Whether you are new to renting or a seasoned tenant, our essential guide to renting can assist with any questions you may have on renting in WA. Looking for a rental? See what’s currently available for rent in Perth.
This article was originally published in the Reiwa.com.au January 23rd 2020 – Click here to read the original article.