The Perth rental market and general market conditions in the Western Australia (WA) region are expected to improve next year, according to the outlook for the Real Estate Institute of Western Australia (REIWA) 2019.
The capital's rental market is performing well this year, thanks to stable median rents, healthy leasing activity, declining listings and a plummeting vacancy rate. In addition, this trend may be postponed until next year.
The REIWA analysis showed that the Perth rental market should continue to follow an upward trajectory until 2019. This will be made possible by key factors such as stable population growth and slowing levels. building new buildings.
Population growth in the state of Washington is expected to remain stable, while new housing starts are expected to decelerate and available rental stock continue to fall. This should result in increased competition among tenants, which will put downward pressure on the vacancy rate, which recently dropped below 4% for the first time in four years.
Perth's overall median rent has been maintained at $ 350 per week since April 2017, which is the longest period of stable rents Perth has seen since REIWA started recording rents in 2001.
Having considered such a positive result, the president of REIWA, Damian Collins, expects an increase in the average value of rents.
"We are at 19 months and we are counting stable median rents in Perth. If listings continue to decline and rental volumes remain healthy, we should see an overall increase in rent prices in 2019 for the first time since September 2014, "said Collins.
However, Collins also warned that any negative gear modification could pose a risk to both the rental sector and the real estate market in general.
"In the short term, the improvements we have seen in the rental market could allow investors to return to the market. However, if negative conversion changes are adopted, this would likely curb investor activity and have a negative effect on the market. Australia's real estate market just as it begins to find its marks, "he said.
REIWA predicted that general market conditions would improve as a result of investments in the mining sector.
Collins shares the fact that Port Hedland, Karratha and Kalgoorlie are areas to watch, as new mining projects help restore confidence in these areas. These projects are expected to create thousands of new local jobs, which should continue to support population growth, improve housing demand and recover assistance.
Overall, the Washington State real estate market is expected to remain stable early next year.
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