Perth rentals the most affordable in the country

• WA is the most affordable place to rent in Australia
• Most suburbs have median asking rents well below their peaks
• Availability rather than affordability will be the challenge for the rental market

Despite tight stock and recent reports reflecting rental stress in Western Australia, the majority of Perth suburbs are still below their peak median rental asking prices.

This is based on data released by the Real Estate Institute of Western Australia (REIWA) today showing that 235 suburbs have rental asking prices lower than peak levels.

REIWA President, Damian Collins, said the recent analysis revealed the Perth rental market is significantly more affordable than it used to be.

“reiwa.com analysis shows 201 of the 235 suburbs had median house rents 10 per cent cheaper than their previous peaks, while 37 of those 201 suburbs were more than 20 per cent cheaper than their previous peak median rents.”

Damian Collins, REIWA President

Western Australia, most affordable

“The fact remains that WA is still the most affordable place in the country for tenants. While rent prices have lifted over the last year, most suburbs are cheaper than they used to be, and some significantly so,” Mr Collins said.

Carine – a suburb in the north of Perth – is a classic example. Asking prices for rentals are 32% below their 2012 peak of $678.

The trend continues in the riverside suburb of Dalkeith. Here, weekly median rentals have declined 31% since the 2013 peak of $1,325 per week.

“City Beach (down 27.7 per cent from the March 2014 quarter), Stirling (down 27.1 per cent from the March 2013 quarter) and North Fremantle (down 27 per cent from the June 2013 quarter) are also much more affordable than they once were,” Mr Collins said.

Perth, rentals still well below their 2013 peak

Property investors are key

Mr Collins said property investors will be essential to the state’s rental future.

“It’s very clear that the biggest issue facing the WA rental market is not affordability, but the shortage of housing.”

Damian Collins, REIWA President

“To keep rents affordable, property investors must remain an active part of the WA market so there are enough rentals on the market to keep up with tenant demand,” Mr Collins said.

“With the Residential Tenancies Act review currently underway, it’s essential that investors are not disincentivised from buying in WA and that the outcomes of the review are fair for all parties.”

Perth’s 10 suburbs furthest from their peak

Source: reiwa.com