A new report produced by The West Australian this week, suggests rental prices are on the increase and should see significant boosts by years end.
The report presents strong data that the future of the Perth rental market is higher rents and greater returns for property investors. This forecast is supported by evidence of a dwindling supply in the housing market and a greater appetite for property coming from the local population.
Property managers are seeing greater numbers at home opens and offers on homes at above asking price.
Looking into the recent past, there has been a 26% reduction in the available rental properties this year as compared to last years vacancy rates.
Damian Collins, the managing director of Momentum Wealth and current President of the Real Estate Institute of WA had this to say:
“I think we will see the median price rise by at least 10 per cent through the year,” he said.
“We were at about $450 four and a bit years ago, and I suspect it could be high $300s by Christmas.”
Suburbs in the south of Perth’s greater metropolitan area like Success and Cannington have seen a 50% reduction in available rental properties in the last 12 months and similar reductions in availability have been seen in Spearwood, Dianella, Osborne Park, Westminster and Clarkson; pointing to a higher price projection as demand begins to outstrip supply.
There are many potential reasons for this new development in the housing sector, but two of the most likely culprits are the lower number of new rental properties coming into the market this year and fresh investment in the resource sectors of WA, bringing 8000-10,000 jobs into Western Australia.