The Domain Rental Report showed that over the last 12 months, median rents for houses grew by 2.8 per cent, and units by 3.3 per cent. The final quarter of 2019 showed median rents for both houses and units respectively sitting at $370 and $310.
More particularly median Perth house rental prices in December 2019 where:
Perth Inner – $495 (4.2 per cent quarterly change)
Perth North East – $350 (0.0 per cent quarterly change)
Perth North West – $370 (2.8 per cent quarterly change)
Perth South East – $360 (2.9 per cent quarterly change)
Perth South West – $370 (0.0 per cent quarterly change)
Mandurah – $320 (0.0 per cent quarterly change)
All areas also saw positive growth, or no change, over the year, with Perth Inner showing the highest annual change at 3.7 per cent.
The Domain report also showed the following growth data for Perth median units in December 2019.
Perth Inner – $350 (0.0 per cent quarterly change)
Perth North East – $275 (3.8 per cent quarterly change)
Perth North West – $320 (0.0 per cent quarterly change)
Perth South East – $300 (0.0 per cent quarterly change)
Perth South West – $315 (1.6 per cent quarterly change)
Mandurah – $260 (4.0 per cent quarterly change)
All areas also saw positive growth, or no change, over the year, with Perth North West showing the highest annual change at 6.7 per cent.
With rent prices rising and availability tightening is typically the initial phase of the market beginning a positive correction. We have seen that vacancy rates in Perth have also decreased a per cent to 2.5 in 2019. Perth remains the most affordable capital city to rent in, and while growing rent prices may not be the most desirable outcome for renters, the flow on affects that occur in the overall economy are positive.
The Domain Rental Report also showed that across the country, Perth investors are reaping some of the greatest rewards. Houses are delivering a median return of 4.6 per cent and units delivering 5.2 per cent.
Mr Percudani said that the current market combination of improving yield, growing renter demand and lower vacancies is making Perth a very attractive option for those astute investors looking to strategically grow their property portfolio. He went on to say “what we are seeing is the initial and cautious phases of a growth market. The rental market appears to have reached a definitive turning point, and we are looking for this to consolidate further in 2020 with a background of improving market and economic conditions”.
If you would like to make a property investment acquisition or would like some advice on the current rental market, talk to us today.
Source: https://www.domain.com.au/news/perth-rents-hold-steady-in-december-quarter-as-market-tightens-domain-rental-report-921025/