- Perth's median rent price rose $5 in October to reach $500
- REIWA CEO Cath Hart has highlighted an urgent need for more investors
- Proposed changes to the Residential Tenancies Act could create more challenges in Perth's rental market
As Perth’s rental shortage persists, the Real Estate Institute of Western Australia (REIWA) has called for more property investors to help provide housing.
Recently released data from REIWA reveals Perth’s median rent price was $500 per week during October, $5 higher than the previous month.
REIWA CEO Cath Hart says this trend is likely to continue in Perth while there is a rental shortage.
“We urgently need more investors in the market to help provide housing and ensure we keep rents affordable,” Ms Hart said.
Perth stock shortage a “critical issue”
Higher rents are coupled with extremely low vacancy rates. SQM Research’s latest data reveals a 0.4% rental vacancy rate in Perth.
Perth
There were 1,658 properties for rent on reiwa.com at the end of October, a figure down 3.8% from September, and 23% lower than October 2021.
“The rental shortage remains a critical issue for the WA rental market.
“Whilst the rental shortage continues to produce significant challenges for many West Aussies, we must not forget how resilient our property market is. We have one of the strongest economies in the world, and the most affordable housing market in the country.
Cath Hart, REIWA CEO
“These strong demand factors coupled with the low supply suggest that any large price falls predicted for the east coast will just not be the case for WA,” Ms Hart said.
Could the RTA review pose more challenges?
Originally proposed three years ago, changes to the Residential Tenancies Act 1987 (RTA) could come into effect soon. The amendments aim to boost tenants’ rights but could come at the cost of landlords.
A REIWA survey conducted earlier this year found that 61% of investors would sell their properties if the changes to Western Australia’s residential tenancy laws are adopted.
Ms Hart says collaboration between REIWA and the state government is aiming to avoid this outcome.
“We have been working with the Government to achieve a sensible outcome to the RTA review that updates the legislation without scaring off existing owners and would-be investors, as this would add even more pressure to the WA rental market at the worst possible time,” Ms Hart said.
