Rents soar in Perth
The cost of renting or having a mortgage in Perth has increased substantially in the past five years, according to data from the 2011 census.
The census shows that median weekly rent has jumped from $170 to $320 – an increase of 88%.
Mortgages have also increased by 55%, from $1,278 to $1,991. Meanwhile, the average mortgage cost in the rest of Australia moved by a much lower 38%, from $1300 to $1800.
Angie Zigamanis, head of BIS Shrapnel’s Residential Property Unit, said that this increase is good news for investors in WA.
“This is a fairly strong growth, and makes the rental investment market attractive from a cashflow perspective”, Mr. Zigamanis said. “It’s definitely not common”.
Angie attributes the increase to “rising wages and low unemployment”, particularly in regard to the west’s mining boom.
“Strong economic growth in the mining industry flows through to strong income growth across the board”, he said.
Angie said the market has been soft over the past five years, however has tightened in the past six months due in part to a surge in population from both overseas and the eastern states.