Perth sees rapid drop in available rental stock
Available rental stock in Perth is dropping at a rapid rate, with listings falling to their lowest levels since November 2013.
According to data compiled by the Real Estate Institute of Western Australia (REIWA), listings fell by 17 per cent in May to 4,676.
“The strong demand we have seen for rental properties continues, with a 27 per cent increase in leasing activity compared with April, and the vacancy rate dropping significantly in the last two years,” REIWA president Damian Collins said.
“Looking ahead, the median rent per week should remain at least stable until the end of the year, with any increase in rent only allowed on new rental listings. Legislation implemented in the Residential Tenancies (COVID-19 Response) Act 2020, means occupied rentals cannot have a rent increase until October.”
A suburb breakdown shows in May, Halls Head saw the biggest spike in leasing activity growth with 33 leases for the month. This was closely followed by Nollamara (20 leases), Coolbellup (16 leases), Joondalup (18 leases) and Como (18 leases).
Rent prices remain stable in Perth, according to the REIWA, who noted the overall median rent sat at $350 per week during May.
Dwelling values
The latest CoreLogic figures show dwelling values in Perth declined by 0.6 per cent in May.
Commenting on this, Mr Collins said although overall prices had only slightly declined in the Perth region, 64 per cent of suburbs saw either an improved or stabilised median house price.
“The top 10 suburbs that saw the biggest increase to median sale price include Ellenbrook, Claremont, Butler, Yokine, Yanchep, Gosnells, Kelmscott, Halls Head, Waikiki and Willetton,” Mr Collins said.
“Interestingly, seven of the 10 suburbs had a median sale price under Perth’s median of $475,000 and suggests people are taking advantage of properties in Perth that are priced at the lower end.”
The suburbs that saw the biggest improvement in sales were Halls Head, Ellenbrook, Rockingham, Byford, Yanchep, Wanneroo, Dianella, Waikiki, Balga and Armadale, according to the research.
“To ensure a vibrant property market, the WA government may need to cut stamp duty and we ask them to consider short-term changes to help incentivise buyers, as well as long-term tax reform removing stamp duty and replacing it with a broader-based land tax system,” Mr Collins concluded.
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