AFTER three years of challenging conditions, new reiwa.com data shows Perth’s rental market has stabilised.
REIWA president Hayden Groves said after a prolonged period of falling rents, soaring listings and record high vacancy rates, the rental market had strengthened.
“The December 2017 quarter results signal a stable market, which is welcome news for landlords and property investors,” he said.
Perth’s overall median rent price remained at $350 a week during the December 2017 quarter.
Mr Groves said it was the third consecutive quarter Perth’s median rent price had held at $350 a week.
“Perth’s median rent stabilised considerably in 2017.
“Where rents were once declining every quarter, we’ve now observed nine months of steady prices.’’
On an annual basis, reiwa.com data shows the median rent declined $10 a week.
“Although there was a small decline between the December 2017 and December 2016 quarters, this is still a significant improvement on the year prior when Perth’s overall median rent declined $40 a week between the December 2016 quarter and the December 2015 quarter.
“Annually, the rate of decline has slowed considerably which is pleasing.’’
There were 13,555 rental properties leased in the December 2017 quarter.
“Despite the traditional lull of the festive season, leasing activity only declined 1.6 per cent during the December 2017 quarter.
“Tenants remain very active and it’s good to see that leasing activity hold up well throughout the holiday season.’’
There were 8912 properties for rent in Perth at the end of the December 2017 quarter.
Mr Groves said rental listings in Perth had declined substantially since their peak of 11,300 in 2016.
“Listings have declined 8.4 per cent on a quarterly basis and are down 13.9 per cent compared to the December 2016 quarter.
“These considerable declines are likely due to new dwelling commencements slowing which has resulted in stock being soaked up.
“Another contributing factor is the improvement in population growth into the state, which lifted to 0.84 per cent in the year to June 2017.
“The rental market is generally the first place to feel the effect of population growth, as new entrants into the state soak up rental stock first.’’
It took 49 days on average to find a tenant in the December quarter – five days faster than it did in the September 2017 quarter.
He said average leasing days had also improved by three days compared with the December 2016 quarter.
“Healthy leasing activity and declining listings has increased demand, which means tenants are needing to act faster to secure a rental.’’