Rental listings in Perth continued to drop in September, falling eight per cent to 2,926 over the month – the lowestitsbeen since 2012, according to reiwa.com data.
REIWA President Damian Collins said what started as a reasonable rental shortage has quickly changed to a severe rental shortage and we are now on the brink of a rental crisis.
With Perths vacancy rate sitting at 1.3 per cent, it is no surprise that we are seeing listings for rent continue to lower. In addition,a number ofour regional members are reporting vacancy rates close to zero, so the impact is being felt across the entire state,MrCollins said.
Days to lease
Leasing days was also notably faster in September, taking a median of 19 days to lease a property in Greater Perth making it the quickest time to lease since June 2013.
The median rent has remained stable at $360per week, however one out of three suburbs in Greater Perth experienced increases to their median rent in September withQuinnsRock, North Perth,Dianellaand Como the top performers.
The data also revealed four out of the top 10 suburbs experiencedthe highest increase in rental demandandhad a median rent price at or aboveof$400 a week – Cottesloe,Innaloo,PiaraWaters andNedlands.
WA needs investors
With population growth returning closer to long-term average levels in WesternAustralia, the State Government needs to encourage investment in property to accommodate returning expats and existing tenants,MrCollins said.
There is the possibility we will run out of properties next year unless something is done to entice investors back and encourage first-home buying in established areas.
Perth residential sales market
CoreLogics latest home value index shows dwelling values in Perth increased 0.2per cent in September.
Median sale price
Darlington saw the biggest increase to its median in September with a 4.9 per cent increase which was followed by Armadale (up 4.7 per cent), Swan View (up 4.5 per cent),Rockingham (up 3.9 per cent), and Padbury (up three per cent), Mr Collins said.
One in four suburbs experienced sales activity growth with Seville Grove recording the biggest increase, followed by Dianella, Shoalwater, Wembley Downs and Leeming.
Listings for sale
Listings for sale were down 20 per cent when compared to the same time last year, however it was the fastest month for selling since May 2014, taking a median of 28 days compared to 55 days in September 2019.
While its clear the WA property sector is in recovery mode with the worst behind us, we will have to deal with low levels of supply in the rental and sales market for some period of time.Mr Collins said.
Changes needed to the industry
In the upcoming WA Budget, we are urging the State Government to introduce at least a $7,000 grant on established homes for firsthome buyers, which will help take pressure off the rental market.
With prices on the rise, net migration at the highest level since March 2014 and record low interest rates, there has not been a better time in many years for investors and home buyers to get into the market.