- Industry is forecasting a possible 20 per cent increase in WA rental prices
- Covid-19 tenancy and rental freezes have led to all-time high occupancy rates
- Many applicants are offering $50 above asking rent price to secure properties
M/Property, one of Perth’s largest apartment rental portfolio property managers, believes that more investors should take advantage of current market conditions with many in the industry forecasting a possible 20 per cent increase across the Perth rental market.
Kiarna Blythman from M/Property has not seen activity of this level in the past 14 years and argues that the current environment allows investors to review and reset rental prices, which have remained relatively stable over recent years.
“Instead of negotiating rents down, applicants are now offering up to $50 a week more than the asking price to secure the property they want,” she said.
“We currently have just one apartment available and eight coming onto the market with a waiting list on our database. This is in vast contrast to our typical pipeline of 20 to 30 apartments and has given us the opportunity to negotiate a new level of revenue for our owners to lock in fresh agreements that benefit the landlord.”
Since the June 2020 quarter, the average apartment rental rates has increased by $20 from $335 to $355 caused by limited supply putting upward pressure on rental prices.
“We are very aware that some landlords have been disadvantaged by the Covid-19 policies and have been unable to evict tenants or review rents. However, as the deadline for restrictions will soon be lifted, now is the time for landlords to take action,” Ms Blythman continued.
“If property owners are successful in increasing weekly rent prices in a time of extraordinary demand, there is a strong possibility their actions will help to adjust pricing benchmarks for the long term. The accelerated pace and total sum of these price shifts may be difficult to achieve when the market opens up again.”
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