Perth rental market holds regular

For the fourth consecutive month, Perth’s rental market has remained steady, with median rents displaying no change since March.

The most recent knowledge from the Actual Property Institute of Western Australia (REIWA) indicated that the median weekly dwelling and home rents held regular at $650 in June, whereas the median weekly unit lease remained at $600.

Indicators of market shift

REIWA CEO Cath Hart (pictured above) highlighted indications of a gradual shift within the rental market.

“Rents have been steady for numerous months, properties are taking longer to lease, and the variety of listings continues to rise,” Hart stated. “Whereas the change isn’t mirrored in all the information – for instance, the emptiness charge stays at a near-record low – our members on the coalface are reporting that circumstances are barely much less frenzied than they have been beforehand.”

Regardless of these indicators, Hart cautioned that the market just isn’t solely out of the woods but resulting from sturdy inhabitants development and low new housing completions.

“As we speak’s numbers are, nonetheless, encouraging and on the pathway to a extra balanced rental market,” she stated.

Components influencing the market

Hart attributed the change to a number of components, together with self-moderation of demand for rental houses and a rise in new provide in some areas.

“We’re seeing some ‘self-moderation’ of demand for rental houses as tenant family sizes enhance and as folks keep away from renting the place potential,” she stated. “We’re additionally lastly seeing a rise in new provide in some areas, and we hope to see this pattern proceed.”

12 months-on-year lease enhance

Regardless of the steadiness in June, rents are nonetheless considerably larger in comparison with a 12 months in the past. The median weekly dwelling lease rose by 18.2% year-on-year, with the median home lease growing by 12.1% and the median unit lease by 14.3%.

“REIWA’s March quarterly replace forecast the speed of lease worth development would gradual over 2024 and we’re beginning to see that now, notably for homes,” Hart stated.

Listings and leasing instances

June noticed 2,484 properties accessible for lease on REIWA’s web site, marking a 3% enhance from Might and a 16.8% rise from the identical time final 12 months.

“The variety of rental listings has been slowly growing since February,” Hart stated. “The final time they have been at related ranges was April 2022.”

Properties leased in a median of 18 days throughout June, two days slower than in Might and a 12 months in the past.

“Earlier this 12 months it took 15 days to lease a house; the slowdown displays the moderation in demand and suggests barely much less competitors for properties,” Hart stated.

Homes reached a brand new document median sale worth of $660,000, up 1.5% from Might and 17.9% larger than June 2023. The median unit sale worth additionally noticed a rise, rising by 1.3% to $440,500.

“Whereas home costs have been setting new data for a while, items stay beneath the earlier document of $450,000 set in 2014,” Hart stated. “Primarily based on present development charges, they may exceed that within the subsequent few months.”

Energetic listings and market circumstances

Energetic listings on the market settled at 3,265 on the finish of June, marginally decrease than Might however 38.9% decrease than a 12 months in the past.

“There’s a notion there are not any houses on the market, however once we have a look at the information we now have seen extra properties come to market within the first six months of 2024 than the identical interval final 12 months,” Hart stated.

With houses promoting shortly, Hart suggested potential consumers to get their funds permitted earlier than getting into the market.

“With competitors so excessive, we suggest potential consumers get their finance permitted earlier than they hit the market to place them in a robust place once they make a proposal,” she stated.

The Perth rental market reveals early indicators of moderation, however challenges stay as inhabitants development and housing shortages persist.

Get the most well liked and freshest mortgage information delivered proper into your inbox. Subscribe now to our FREE day by day publication.