Perth’s rental stock dries up
Perth desperately needs an influx of rental stock in the market to provide renters with more housing options, an expert has said.
Only 2,839 properties were listed for rent in Perth at the end of February, according to reiwa.com, marking the sixth consecutive month that listing have sat below the 3,000 mark.
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Due to the tightening rental market, as many as 258 Perth suburbs saw an increase in rent during the month, with the median rent price holding the five-year high of $400 per week.
The suburbs with the biggest increase in median rent were Subiaco (up $23 to $723), Scarborough (up $20 to $520), Ellenbrook (up $10 to $370), Belmont (up $10 to $380) and Greenwood (up $10 to $410).
Moreover, as many as 186 Perth suburbs recorded an increase in leasing activity in February, with Beeliar leading the pack following a spike of 29 per cent compared with January.
Other suburbs to perform well were Innaloo (up 22 per cent), Greenwood (up 14 per cent), Gosnells (up 9 per cent), Rivervale (up 8 per cent) and Canning Vale (up 4 per cent).
Given the hive of activity on the rental market, it took a median of 19 days for a lessor to find a tenant for their property last month – the lowest level since June 2013.
“Perth is in desperate need of more rental stock to help ease the rental shortage. In order to do this, we need to entice investors back to the market,” said REIWA president Damian Collins.
“While the end of the rental moratorium later this month will remove one of the barriers for investors, more needs to be done to encourage residential property investment in WA and ensure there are enough rentals in the market to keep up with tenant demand.”
CoreLogic’s latest figures revealed on Monday a disparity in rental markets across Australia, with overly tight conditions in Perth and Darwin contrasting the plunging figures in Sydney and Melbourne.
“The strength in Perth and Darwin’s rental sector can be attributed to a mix of low supply, due to a recent history of low investor participation, and rising demand as interstate migration trends move into positive territory,” said CoreLogic’s research director, Tim Lawless.
