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REIWA: Pockets of positivity in Perth’s challenging rental market

Perth’s North East sub-region was the stand out performer in the Perth rental market in the June 2016 quarter, recording a 4.7 per cent increase in leasing activity.

REIWA President Hayden Groves said while the number of leased properties in the overall Perth market for houses and units declined 5.2 per cent in the June quarter, it was pleasing that there were areas across the metro region that were bucking the trend and doing well in challenging conditions.

“There was a notable lift in activity in the North East sub-region, and we also saw signs of strength in the South West sub-region with activity lifting 0.2 per cent,” Mr Groves said.

The Central sub-region had the biggest decline in activity in the three months to June, dropping off 8.5 per cent.

At a suburb level, the top performers for increase in leasing activity in each of the sub-regions were:

Sub-region Suburb Median rent per week
Central Ascot ^ 88.2%
North East High Wycombe ^ 19.4%
North West Duncraig ^ 55%
South East Maddington ^ 24.4%
South West Secret Harbour ^ 38.8%

*For suburbs with more than 30 leased properties

Rent prices

Tenants continued to enjoy improved affordability in the rental market in the June quarter, with the overall median rent (houses and units) dropping $15 to $380 per week.
“As with leasing activity, the North East and South East sub region’s median rent price held steady over the quarter with no change,” Mr Groves said. data shows that the South West sub-region saw the biggest shift in median rent price over the quarter, now at $360 per week.

Mr Groves said that despite the rental market becoming more affordable overall for Perth tenants, there were still some suburbs throughout the metropolitan area that were benefiting investors.

“For example, 30 per cent of the 124 suburbs in the Central sub-region experienced either an increase in their median rent prices or had stable rents,” Mr Groves said.

The suburb’s with the biggest increase in median rent price in each of the sub-regions were:

Sub-region Suburb Median rent per week Difference to March quarter
Central Burswood $510 ^ $37
North East Forrestfield $400 ^ $20
North West Padbury $415 ^ $37
South East Harrisdale $420 ^ $20
South West Shoalwater $350 ^ $30

*For suburbs with more than 30 leased properties

Average days to lease

It took one day more to lease a property in the June quarter than it did in the March quarter, according to June quarter data.

“Average leasing days for the three months to June sits at 50 days, which isn’t surprising given that the volume of rental properties available for lease on the market pushed past 11,000 in the three months to June,” Mr Groves said.

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