Perth remains the cheapest capital city to rent a house, new data shows
Perth remains the most affordable capital city in the nation to rent a house or a unit, a new report shows.
The city’s median weekly asking rent during the March quarter increased 1.4 per cent to $365, a 2.8 per cent rise year-on-year, according to the latest Domain Rental Report, released on Thursday.
For units, median weekly rents remained unchanged during the quarter, and year to March, at $300 per week.
The affordability of Perth’s rental market has come off the back of prolonged favourable tenant conditions where rental prices adjusted, Domain senior research analyst Nicola Powell said.
“When you look at those trends, what you are starting to see is maybe a little bit of a turnaround,” Dr Powell said.
“What we have seen now for house rents is they have improved for two quarters in a row, and unit rents have flat-lined for two years, but I think these two things together are really a significant improvement of what the market had experienced in the years prior to that.
“It was about four years where rents were falling, it really was a tenants’ market.
“But I think there is an element of stability now in the Perth rental market and, now that we have had two quarters of consecutive growth for house rents, it could be a signal that landlords may start to have a little bit of stronger grounds to actually raise those rents.”
However, Dr Powell said, it was good news for tenants with stable rents and there were areas of Perth with greater supply than others, where negotiating rental prices had greater prospects.
Realmark Coastal managing director Sean Hughes said the rental market seemed to be strengthening with days on market continuing to shorten and the amount of rental inquiry increasing.
“This means that rent is also being increased to show a change in the market. There is strong inquiry and multiple applications being made, especially in the executive leasing space,” he said.
“I think as the election finishes and the Perth market continues to gather momentum in the resources sector, that an increase in jobs will see the rental market continue to strengthen in WA.”
Davey Real Estate senior property manager Holly Mearns-Mennell said the state of Perth’s rental market was unpredictable with an increase in tenant inquiry but no great rise in rental prices.
“Securing a good quality application is still challenging with incentives and price reductions still needing to be offered,” she said.
Ms Mearns-Mennell predicted much of the same for the months ahead.
“I do not anticipate rental prices to increase dramatically but, as the market evens out, we should continue to see an increase in tenant movement,” she said.
There were signs of improvement in the Perth rental market, Harcourts WA chief executive Paul Blakeley believed, with an upward movement of weekly rents, lower vacancy rates and fewer days on market.
“As we head into to the winter months we expect to see a slight increase in vacancy rates, in line with historical trends,” he said.
“The areas in most demand are those in close proximity to the city, public transport and sought-after public schooling catchments.
“While not suffering as such, the Perth outer suburbs are not seeing the same levels of interest in applications and have not seen the same increases in weekly rents or inquiry.”
Tenants should monitor the market and register with local agencies so they could be notified as soon as properties were due to become available, Mr Hughes said.
“Landlords still need to continue to do maintenance on their properties to make them appealing,” he said.
Promptness on application submissions was necessary, especially at a home open where there were more than five other attendees, Ms Mearns-Mennell said.
“On the opposite end of the scale where there is minimal attendees to home opens, don’t be afraid to offer a reduced rental rate – obviously keep it realistic,” she said.
“Ask the property manager at the home open if the owner would consider certain conditions – garden maintenance, installing an additional airconditioner, reduce the rent etc.
“The agent is there on behalf of the landlord but is also going to work [with both the] landlord and tenant for a positive outcome.”
Mr Blakeley said landlords should continue being patient and review applications thoroughly.
“Tenants may need to have a little more need for urgency as properties are leasing faster with increased demand,” he said.
source: https://www.domain.com.au/
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