Tight Perth rental market needs more investors

Perth’s low vacancy rate has left 12 suburbs across the city with just one property available for rent.

According to the Real Estate Institute of Western Australia (REIWA), Southern River, Leeming and Parmelia are among the 12 Perth suburbs desperately need of more investors.

REIWA President Damian Collins said the rental shortage remained a significant challenge for the state, with many suburbs across Perth having only a handful of rentals available.

“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,” Mr Collins said.

“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.”

Source: REIWA

Also making the list of suburbs with just one available rental property was Kingsley, Caversham, Lockridge, Swan View, Hilbert, Manning, Madora Bay, North Beach and Iluka with five having a median sale price below the Perth median of $525,000, three between $570,000 and $700,000, and four priced above $785,000.

Additionally, eight of the 12 suburbs have gross rental yields of four per cent or higher.

“With a wide variety of price points highlighted on this list, as well as strong rental yields on offer, there is excellent opportunity for investors to purchase a high performing rental in these areas,” Mr Collins said.

There is an urgent need for more investors in WA, with fewer than 2500 properties available for rent in Perth and vacancy rates across the state remaining at or near record lows according to Mr Collins.

“We have some of the most affordable housing in the country as well as a high demand for rentals,” he said.

“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.

“If you have been thinking about investing in the Perth property market, the suburbs highlighted on this list would be a good place to start discussions with your REIWA buyer’s agent.”

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Rowan Crosby

Rowan Crosby is a freelance journalist specialising in finance and real estate.