Industry NewsReal Estate Industry NewsWA

Perth rental stock dropping rapidly

Perth’s rental stock has been quickly absorbed, with listings falling by 17 per cent in May to 4,676 – the lowest they have been since November 2013.

REIWA President Damian Collins said despite speculation about a potential challenging real estate market, according to the May reiwa.com data overall it is doing quite well.

“The strong demand we have seen for rental properties continues, with a 27 per cent increase in leasing activity compared with April, and the vacancy rate dropping significantly in the last two years,” Mr Collins said.

In May, Halls Head saw the biggest spike in leasing activity growth with 33 leases for the month, closely followed by Nollamara (20 leases), Coolbelup (16 leases), Joondalup (18 leases) and Como (18 leases).

reiwa.com data shows rent prices remain stable in Perth, with the overall median rent sitting at $350 per week during May.

“Looking ahead, the median rent per week should remain at least stable until the end of the year, with any increase in rent only allowed on new rental listings,” Mr Collins said.

“Legislation implemented in the Residential Tenancies (COVID-19 Response) Act 2020, means occupied rentals cannot have a rent increase until October.”

In sales, CoreLogic’s latest home value index shows dwelling values in Perth declined 0.6 per cent in May.

Mr Collins said although overall prices had only slightly declined in the Perth region, reiwa.com data shows 64 per cent of suburbs saw either an improved or stabilised median house price.

“The top 10 suburbs that saw the biggest increase to median sale price include Ellenbrook, Claremont, Butler, Yokine, Yanchep, Gosnells, Kelmscott, Halls Head, Waikiki and Willetton,” Mr Collins said.

“Interestingly, seven of the 10 suburbs had a median sale price under Perth’s median of $475,000 and suggests people are taking advantage of properties in Perth that are priced at the lower end.

“Listings for sale were also down in May with only 11,299 properties for sale on reiwa.com, which is 3.3 per cent lower than April and 30 per cent lower than this time last year.

“With reiwa.com data showing sales activity improved by 43 per cent in May following a particularly weak April, it is clear that sales stock is also being rapidly absorbed.”

The suburbs that saw the biggest improvement in sales were Halls Head, Ellenbrook, Rockingham, Byford, Yanchep, Wanneroo, Dianella, Waikiki, Balga and Armadale.

“To ensure a vibrant property market, the WA Government may need to cut stamp duty and we ask them to consider short-term changes to help incentivise buyers, as well as long-term tax reform removing stamp duty and replacing it with a broader-based land tax system.” Mr Collins said.

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