"Rents will continue to rise until we see more rental properties come on to the market"
Rental stock levels on reiwa.com have hit their lowest level in 12 years, with just 1,675 properties available for rent at the end of September, according to the Real Estate Institute of Western Australia. The last time the level was comparably low was in November 2010, with 1,537 properties available.
REIWA president Damian Collins said that it was a challenging time for tenants, with rental supply struggling to keep pace with Perth’s growing population.
“Perth’s population has increased by 20% since November 2010, which highlights how low the current rental stock is,” Collins said. “Construction delays and labour shortages mean families are renting for longer while they wait for houses to be built, which is contributing to the tight rental market.”
Collins said that “mum-and-dad” investors who have rental properties were critical for ensuring that rent remains affordable.
“Our research shows that 72% of people who own investment properties only own one, and are most likely working as school teachers, nurses or other healthcare professionals,” he said. “Any changes to WA’s tenancy laws that discourage investors from buying residential property in WA will make an already tough situation worse. That’s why REIWA is working hard to keep tenancy laws fair and equitable for all parties.”
Perth’s median rent price was $495 per week in September, a $15 increase over August.
“It is not surprising that rent prices have increased given that listings are at a 12-year low,” Collins said. “Unfortunately, rents will continue to rise until we see more rental properties come on to the market.”
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It took a median of 16 days to lease a rental property in September, the same as August. The fastest-leasing suburbs were Maddington (seven days), Tappin (eight days), Byford (nine days), Tuart Hill (nine days), and Piara Waters (nine days).
“There are clearly challenges in the rental market,” Collins said. “However, we have the most affordable housing climate in the country, an enviable lifestyle, plentiful job opportunities and a strong economy making our state a very attractive option for people wishing to move here.”
