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Rents jump and prices tipped to grow, Perth

Rental market pressure has increased in Perth, according to new data from the Real Estate Institute of WA (REIWA).

REIWA’s quarterly report revealed that the vacancy rate had dropped to its lowest level in two years, to under three per cent.

Despite a 19 per cent increase in house sales in October, average rents rose by $15 to $395.

"It seems that despite housing affordability having improved, many people are still opting to rent rather than buy and this is placing increased pressure on the rental market," REIWA president David Airey said.

The Perth median house price dropped from $480,000 to $450,000, but REIWA predicted that current increases may push this up to $465,000.

Twenty-eight per cent of sales were first home buyers who typically purchase at under $450,000.

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