The Perth rental market is significantly more affordable than it used to be, with reiwa.com analysis showing 235 suburbs had median house rents below their peak prices in May 2021.
REIWA President Damian Collins said the vast majority of Perth suburbs were more affordable for tenants than they 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, Mr Collins said.
WA still the most affordable place to rent in the country
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.
Carines median house rent for example is 32 per cent cheaper than it was in 2012, when its median rent peaked at $678 during the September quarter. Almost nine years later, and the median house rent in the area is now $460 – $218 per week less than it used to be.
It is a similar story in Dalkeith too, which has seen its median weekly house rent decline 31 per cent over the last eight years, from $1,325 in the December quarter 2013 to $910 per week in May 2021.
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.
Property investors are essential to keeping WA rents affordable
It’s very clear that the biggest issue facing the WA rental market is not affordability, but the shortage of housing. 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 ResidentialTenancies Act review currently underway, its essential that investors are not disincentivised from buying in WA and that the outcomes of the review are fair for all parties.
The 10 Perth suburbs that are the furthest away from their peak median rents
|Suburb||May 2021 median house rent||Peak median house rent||Time of peak median house rent||Percentage change since peak|
|1. Carine||$460||$678||Q3 2012||-32.1%|
|2. Dalkeith||$910||$1,325||Q4 2013||-31.3%|
|3. City Beach||$850||$1,175||Q1 2014||-27.7%|
|4. Stirling||$510||$700||Q1 2013||-27.1%|
|5. North Fremantle||$650||$890||Q2 2013||-27.0%|
|6 Munster||$380||$520||Q3 2013||-26.9%|
|7. Alkimos||$350||$470||Q4 2012||-25.5%|
|8. Jindalee||$450||$600||Q2 2014||-25.0%|
|9. Murdoch||$420||$560||Q4 2013||-25.0%|
|10 Maylands||$400||$530||Q4 2013||-24.5%|