Several factors point to a tightening in Perth's rental markets, as demand continues to catch up with housing supply, according to the Real Estate Institute of Western Australia (REIWA).
The time it takes for a listed Perth property to rent decreased from 13 days to 21 days in August, the fastest rental days since the mining boom in 2015.
Homes in Maddington are the fastest to rent, as they only stay on the listings for seven days. Other suburbs with quick rental days are Armadale (nine days), Coolbellup and Wanneroo (10 days), and Secret Harbor (11 days).
The decline in rental days is just one factor indicating strong demand in Perth rental markets, said Damian Collins, president of REIWA.
"Strong rental demand saw reiwa.com's rental stock plummet 10% in July, with 3,205 properties for rent at the end of August. Based on current survey levels, we expect that inventory levels will continue to decline in September, "he said.
Growing demand in the Perth rental market would likely translate into potential gains in median rents, Damian said. In fact, while overall median rents have held steady at $ 360, house rents have already risen by $ 10 to $ 380.
"We can expect to see continued upward pressure on rents in the coming month," he said.
However, it appears that there are a limited number of investors in the market who are looking to purchase investment property.
"It is important that we restore investor confidence and one of the ways the state government can take the lead is to drastically reduce the number of properties subject to COVID legislation -19 on residential leases. Unless investors are confident enough to enter the market, the rental shortage will only get worse, "Damian said.
Perth's vacancy rate fell to 1.6% in July, the lowest level since March 2008. Perth rental market conditions indicate a substantial imbalance between supply and demand. request. For a rental market to have an ideal balance between supply and demand, it needs to have a vacancy rate of around 3%, Collins said.
"However, now being below 2%, we are starting to see the effects of limited inventory, and it is only a matter of time before rents go up. In some regions, agents say rents are already on going up, ”he said.
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