- Median rental asking price held at $425 per week in July
- Rental shortage continues
- REIWA President Damian Collins warns against major change to Residential Tenancies Act
The median rent price in Perth held steady in July as the rental shortage continues.
Weekly asking prices remained pegged at $425 during the month according to REWA. This comes as welcome news for tenants since the median rent has been creeping up following the end of the rental moratorium earlier this year.
“Although the Perth median rent price has increased over the last year, we are still $25 cheaper than the peak median rent price of $450 per week in 2013 and 2014,” said REIWA President Damian Collins.
“It’s reassuring for tenants that the rate of growth has slowed,” said Mr Collins.
There were 2,734 properties on the rental market at July’s end according to REWA.
Although Perth rental stock has been recovering during the year, current availability is still a far reach from the targeted ‘balanced market’ which would require a 2 – 3% vacancy rate (or between 7,000 and 8,000 listings available).
“We still have some way to go before we get back to a balanced market, but the early signs are good.
Damian Collins, REIWA President
“Listings for rent have increased 13% since the height of the rental shortage in December 2020. Although there is still a rental shortage, this is an encouraging trend that needs to continue to achieve a balanced market,” Mr Collins said.
“The increase in listings since January reinforces that investor confidence is slowly starting to return. This is also backed up by Australian Bureau of Statistics data which shows investor loan approvals in Western Australia increased to $498 million in May 2021, which is 10 per cent more than April 2021 and 209 per cent more than May 2020,” Mr Collins said.
The biggest influxes in availability were seen in the areas of Bayswater, Mount Hawthorn, Halls Head, Ascot and Bassendean.
Leasing activity increased slightly in July by 0.3%. This is up 7.1% since April.
Mr Collins warns against any major change to the Residential Tenancies Act which is currently under review.
“It is vital that the review of the Residential Tenancies Act does not derail this progress by discouraging investor activity.”
“Any change that deters investors in Perth will inevitably impact rental supply in the city.
“Now is not the time to be making significant changes to the Residential Tenancies Act.”