Perth rentals down 10-30% from peak
The Perth rental market has risen in affordability, with a new analysis showing more than 200 suburbs with median house rents below their peak prices.
Recent data from the Real Estate Institute of Western Australia (REIWA) found a total 235 suburbs across the state with median house rents below their peak prices as of May 2021.
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Of these suburbs, 201 were 10 per cent cheaper than their previous peaks, while 37 were more than 20 per cent cheaper.
“While rent prices have lifted over the last year, most suburbs are cheaper than they used to be – and some significantly so,” according to REIWA president Damian Collins.
In some suburbs, rental declines have even reached over 30 per cent, REIWA noted.
Carine, for example, saw median house rentals fall by 32 per cent since peaking in 2012 – bringing the average rent price from $678 to $460.
Similarly, Dalkeith’s median house rents declined by 31 per cent from its peak – from $1,325 in December 2013 to $910 in May 2021.
Other suburbs that saw significant declines from their peaks were City Beach (27.7 per cent), Stirling (27.1 per cent) and North Fremantle (27 per cent).
Ultimately, Western Australia remains the most affordable place in the country for tenants, Mr Collins highlighted.
But to keep rents affordable, the president said investment activity will have to improve to counter ongoing supply shortages across the state.
“It’s very clear that the biggest issue facing the WA rental market is not affordability, but the shortage of housing,” he stated.
“To keep rents affordable, property investors must remain an active part of the WA market so there are enough rentals on the market to keep up with tenant demand.
“With the Residential Tenancies Act review currently underway, it’s essential that investors are not disincentivised from buying in WA and that the outcomes of the review are fair for all parties,” Mr Collins concluded.
Top 10 Perth suburbs based on rental decline from previous peak
|
SUBURB |
MAY 2021 MEDIAN HOUSE RENT |
PEAK MEDIAN HOUSE RENT |
PERCENTAGE CHANGE SINCE PEAK |
|
1. Carine |
$460 |
$678 (2012) |
-32.1% |
|
2. Dalkeith |
$910 |
$1,325 (2013) |
-31.3% |
|
3. City Beach |
$850 |
$1,175 (2014) |
-27.7% |
|
4. Stirling |
$510 |
$700 (2013) |
-27.1% |
|
5. North Fremantle |
$650 |
$890 (2013) |
-27.0% |
|
6 Munster |
$380 |
$520 (2013) |
-26.9% |
|
7. Alkimos |
$350 |
$470 (2012) |
-25.5% |
|
8. Jindalee |
$450 |
$600 (2014) |
-25.0% |
|
9. Murdoch |
$420 |
$560 (2013) |
-25.0% |
|
10 Maylands |
$400 |
$530 (2013) |
-24.5%
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