Perth rental market holds regular

For the fourth consecutive month, Perth’s rental market has remained secure, with median rents displaying no change since March.

The most recent information from the Actual Property Institute of Western Australia (REIWA) indicated that the median weekly dwelling and home rents held regular at $650 in June, whereas the median weekly unit lease remained at $600.

Indicators of market shift

REIWA CEO Cath Hart (pictured above) highlighted indications of a sluggish shift within the rental market.

“Rents have been secure for numerous months, properties are taking longer to lease, and the variety of listings continues to rise,” Hart mentioned. “Whereas the change isn’t mirrored in all the information – for instance, the emptiness price stays at a near-record low – our members on the coalface are reporting that circumstances are barely much less frenzied than they had been beforehand.”

Regardless of these indicators, Hart cautioned that the market shouldn’t be solely out of the woods but on account of sturdy inhabitants development and low new housing completions.

“Right now’s numbers are, nevertheless, encouraging and on the pathway to a extra balanced rental market,” she mentioned.

Elements influencing the market

Hart attributed the change to a number of components, together with self-moderation of demand for rental properties and a rise in new provide in some areas.

“We’re seeing some ‘self-moderation’ of demand for rental properties as tenant family sizes enhance and as folks keep away from renting the place potential,” she mentioned. “We’re additionally lastly seeing a rise in new provide in some areas, and we hope to see this pattern proceed.”

12 months-on-year lease enhance

Regardless of the steadiness in June, rents are nonetheless considerably greater in comparison with a 12 months in the past. The median weekly dwelling lease rose by 18.2% year-on-year, with the median home lease growing by 12.1% and the median unit lease by 14.3%.

“REIWA’s March quarterly replace forecast the speed of lease value development would sluggish over 2024 and we’re beginning to see that now, significantly for homes,” Hart mentioned.

Listings and leasing instances

June noticed 2,484 properties out there for lease on REIWA’s web site, marking a 3% enhance from Could and a 16.8% rise from the identical time final 12 months.

“The variety of rental listings has been slowly growing since February,” Hart mentioned. “The final time they had been at comparable ranges was April 2022.”

Properties leased in a median of 18 days throughout June, two days slower than in Could and a 12 months in the past.

“Earlier this 12 months it took 15 days to lease a house; the slowdown displays the moderation in demand and suggests barely much less competitors for properties,” Hart mentioned.

Homes reached a brand new file median sale value of $660,000, up 1.5% from Could and 17.9% greater than June 2023. The median unit sale value additionally noticed a rise, rising by 1.3% to $440,500.

“Whereas home costs have been setting new information for a while, items stay beneath the earlier file of $450,000 set in 2014,” Hart mentioned. “Based mostly on present development charges, they might exceed that within the subsequent few months.”

Energetic listings and market circumstances

Energetic listings on the market settled at 3,265 on the finish of June, marginally decrease than Could however 38.9% decrease than a 12 months in the past.

“There’s a notion there aren’t any properties on the market, however after we take a look at the information we’ve seen extra properties come to market within the first six months of 2024 than the identical interval final 12 months,” Hart mentioned.

With properties promoting rapidly, Hart suggested potential patrons to get their funds accredited earlier than coming into the market.

“With competitors so excessive, we suggest potential patrons get their finance accredited earlier than they hit the market to place them in a powerful place once they make a proposal,” she mentioned.

The Perth rental market exhibits early indicators of moderation, however challenges stay as inhabitants development and housing shortages persist.

Get the most popular and freshest mortgage information delivered proper into your inbox. Subscribe now to our FREE each day e-newsletter.