Investors wanted: 12 Perth suburbs in dire need of rental supply

By Zarah Mae Torrazo 21 June 2022 | 1 minute read

There is an urgent need for more investors in Western Australia, as a new report showed that the city continued to grapple with a shortage in rental listings in May.

Perth

The Real Estate Institute of Western Australia reported there were 12 PerthPerth, TAS Perth, WA suburbs with just one rental up for grabs at the end of last month, revealing the depth of the city’s ongoing rental supply crunch.

The 12 suburbs included in the list were Southern River, Leeming, Parmelia, Kingsley, Caversham, Lockridge, Swan View, Hilbert, Manning, Madora Bay, North BeachNorth Beach, SA North Beach, WA and IlukaIluka, NSW Iluka, WA.

REIWA president Damian Collins said the rental shortage remained a “significant challenge” for the state. 

“For there to be just a single rental available at any time, highlights how important it is that we attract investors back to the WA market,” he said.

Mr Collins added that in several suburbs across Perth, only a handful of rentals are available — making it difficult to keep up with the high demand. 

“Many of the suburbs highlighted on this list, like Kingsley, Southern River and Leeming are large suburbs with more than 10,000 people residing in the area. 

“For there to be just a single rental available at any time, highlights how important it is that we attract investors back to the WA market,” Mr Collins said.

The shockingly low listings in the city have also resulted in higher rental weekly prices. In the 12 suburbs with just one rental available, rental weekly prices ranged from an average of $380 to $660 per week.

Mr Collins said the solution was to increase investment, calling on investors to take advantage of the tight rental conditions. 

“There is an urgent need for more investors in WA, with fewer than 2,500 properties available for rent in Perth and vacancy rates across the state remaining at or near record lows,” he stated. 

He also enumerated the benefits of investing in Perth and urged investors to work with their buyer’s agent to look deeper into the market. 

“We have some of the most affordable housing in the country as well as high demand for rentals. There is enormous potential for investors to take advantage of the state’s healthy economy and strong property market to secure a low-risk rental,” Mr Collins stated.

For investors working with a specific budget, REIWA’s report highlighted the different median sale price points in the list that could accommodate any investor. 

For high-spenders, four of the suburbs included in the dire dozen had median sale prices above $785,000. This included North Beach ($985,000), Iluka ($950,000), Manning ($827,500), and Leeming ($787,500).

The list also included suburbs that had a price tag averaging between $570,000 and $700,000, namely Madora Bay ($570,000), Kingsley ($695,000) and Southern River ($591,500). 

Meanwhile, five have median sale prices below the Perth median of $525,000, including Caversham ($520,000), Hilbert ($420,000), Swan View ($410,000), Lockridge ($332,500), and Parmelia ($307,000). 

 

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Investors wanted: 12 Perth suburbs in dire need of rental supply
Perth
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