Rental demand soars in Perth
Investors are expected to return to the Perth market, with a local agency reporting intense interest from potential tenants in one particular property last week.
“I received a report this week from one of our senior property managers on a property that was opened for inspection with 20-plus people viewing the property in 15 minutes,” Graeme Baxter, managing director at ACTON, said.
“There were six applications submitted and successfully leased at $20 above the asking price.
“This level of activity should see investors returning to the property market as a very secure form of investment compared to the volatility of the stock exchange as witnessed over recent months.”
Mr Baxter pointed to recent Real Estate Institute of WA (REIWA) data which showed that the vacancy level for residential rental properties is below two per cent in most parts of the city. REIWA also reported a 24 per cent drop in available rentals across the metropolitan area in February, falling from 2,900 properties to 2,200.
“Certainly now is the time for sales teams to target the ‘investor market’ and expand the availability of rental stock to satisfy the demand of our burgeoning population,” Mr Baxter continued.
“This is particularly relevant in Western Australia at the moment which leads the country in net migration growth.”
Mr Baxter's comments come not long after ACTON, which has around 20 offices in WA, reported a 60 per cent on-month surge in sales in February.