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Perth's rental market continues to stabilise Extract from REIWA.com.au | 8th November, 2019
Asset Management Newsletter
December 2019
Asset Management Newsletter | December 2019 1
18 Norfolk Street, Fremantle WA 6160
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T: 08 9432 7555 F: 08 9432 7575
For the second quarter in a
row, Perth’s rental market
has continued to improve
with the vacancy rate
lowering to 2.5 per cent,
172 suburbs recorded an
increase in leasing activity
and 110 suburbs recorded
an increase in median
weekly rent.
The REIWA Deputy President, said
Perth’s rental market appears to be
building on the momentum of the
latter half of 2019.
“This is very encouraging – not just
for the rental market, but also for
the overall property market as
historically, the sales market follows
the rental market during a
recovery”.
Median rent prices
While 110 suburbs recording an
increase in median rent price, there
were 117 suburbs that saw no
change with reiwa.com data
showing Perth’s overall median rent
remains at $350 per week.
“With only seven more suburbs
separating the two, we can see how
close we are to potentially seeing an
increase in Perth’s overall median
rent price, which will be the first time
since April 2017,”.
“From a suburb level, reiwa.com
data shows that Madeley had the
biggest growth for the quarter with
an increase of $25 per week,
Munster closely followed with a $23
increase, then Cannington, Carlisle
and Carramar which all saw an
increase of $20 per week.
Leasing activity
There were 13,356 rental properties
leased in Perth during the
September quarter, which is 12 per
cent more compared to the
previous quarter.
“All six Perth sub-regions saw an
improvement in leasing volumes,
with the biggest improvements
occurring in Mandurah (up 21 per
cent), Inner region (up 18 per cent)
and South West region (up 16 per
cent),” the REIWA Deputy President
said.
Asset Management Newsletter | December 2019 2
Perth Rental Market Snapshot REIWA members reported there were 6,022 properties for rent in Perth
at the end of this week, which is two per cent less than last week.
This This week's rental listings figure is two per cent higher than levels seen four weeks ago but are 17 per cent lower than levels seen a year ago.
Properties Listed for Rent Week Ending 1st December, 2019
Currently: 6,022
4 Weeks Ago: 5,912
Last Year: 7,276 Diane Da Luz Managing Director
0433 205 227 9432 7555 [email protected]
“At a suburb level, reiwa.com data
shows Riverton, Dudley Park,
Success, Como and Mullaloo saw
the biggest growth in leasing activity
levels over the quarter.”
Listings for rent
Rental listings declined 17 per cent
Perth's rental market continues to stabilise Extract from REIWA.com.au | 8th November, 2019
during the quarter, with 6,169 listings
recorded at the end of the
September 2019 quarter.
“From an annual perspective listings
are down 19 per cent and on
average are taking six days less to
lease. With the vacancy rate at 2.5
per cent and listings continuing to
lower, we could see more pressure
put on the rental market which will
lead to an increase in Perth’s overall
median rent price,” Ms Joyce said.
“With the Perth
rental market finally
starting to re-balance,
now is a good time for
tenants to secure their
new rental or look into
a longer-term lease
before rents
potentially rise.”
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Asset Management Newsletter | December 2019 3
has risen, the increase in family
income and the decrease in the
interest rates have negated this rise,”
Mr Kelly said.
“Similarly, with a small decrease in
average rents, the percentage of
income to meet these payments has
also declined.“
“The total number of loans
increased over the September
quarter by 10 per cent and
the number of new loans to
first home buyers increased by
9,270, some 13.6 per cent over
the quarter and 6.8 per cent
over the year.”
First home buyers take advantage
of low interest rates Extract from REIWA.com.au | 4th December, 2019
Housing affordability has
improved across the
country, seeing the highest
per cent of first home buyers
in the marketplace in eight
years, according to
research from the Real
Estate Institute of Australia.
REIA President Adrian Kelly said the
September quarter 2019 edition of
the REIA Housing Affordability
Report found housing affordability
improved in all states and territories,
except Tasmania, while rental
affordability improved across the
nation.
“Although the average loan amount
“The percentage of first
home loans to all home
loans, excluding
refinancing, is at 29.4 per
cent which is the highest
since 30.3 per cent in
December 2011. The
largest increase was in the
Australian Capital Territory
at 61.1 per cent, while
South Australia and the
Northern Territory bucked
the upward national
trend.”
Asset Management Newsletter | December 2019 4
Merry Christmas From all of the team at
The number of first
home buyers in WA
increased to 3,817 in
the September
quarter, an increase of
9.9 per cent over the
quarter and an
increase of 6.3 per
cent points compared
to the same time last
year.
Western Australia
Over the September quarter,
housing affordability in WA improved
with the proportion of income
required to meet loan repayments
decreasing to 22.1 per cent, a
decrease of 0.3 per cent for the
quarter and a decrease of 0.4 per
cent compared to the September
quarter 2018.
Of all Australian first home buyers
over the quarter, 12.7 per cent were
from WA while the proportion of first
home buyers in the state’s
owner-occupier market was 37.0 per
cent.
Rental affordability in WA also
improved during the September
quarter with the proportion of family
income required to meet the
median rent decreasing marginally
to 16.3 per cent, a decrease of 0.1
per cent over the quarter but an
increase of 0.2 per cent compared
to the year
First home buyers take advantage
of low interest rates Extract from REIWA.com.au | 4th December, 2019