Rental stock levels on reiwa.com are at their lowest in 12 years, with just 1,675 properties available for rent at the end of September. The last time the levels were this low was in November 2010 with 1,537 properties available for rent.
REIWA President Damian Collins said now was a challenging time for tenants, with rental supply struggling to keep up with Perths growing population.
Perths population has increased by 20 per cent since November 2010, which highlights how low the current rental stock is, Mr Collins said.
Construction delays and labour shortages means families are renting for longer while they wait for houses to be built, which is contributing to the tight rental market.
Mum-and-dad investors who have rental properties to offer to tenants in WA are critical for ensuring rents remain as affordable as possible.
Our research shows that 72 per cent of people who own investment properties only own one, and are most likely working as school teachers, nurses or other health care professionals.
Any changes to WAs tenancy laws that discourage investors from buying residential property in WA will make an already tough situation worse. Thats why REIWA is working hard to keep tenancy laws fair and equitable for all parties, Mr Collins said.
CoreLogic home value index
CoreLogics Perth home value index declined 0.4 per cent in September, however Perth remains better positioned than other Australia jurisdictions, with strong buyer demand and many properties still selling quickly.
Despite the decline in overall home values, our data revealed there were a number of Perth suburbs to record strong house price growth, Mr Collins said.
WA is still in an excellent position for price growth with our strong economy, growing population and limited stock levels.
The five suburbs to record the biggest increase in price during September were Singleton (3.9 per cent to $535,000), Ocean Reef (2.8 per cent to $915,000), Beckenham (2.7 per cent to $467,500), Bibra Lake (2.7 per cent to $610,000) and South Perth (2.5 per cent to $1.55 million).
Other suburbs to perform well were Falcon, Safety Bay, Dawesville, Bullsbrook and Melville.
Listings for sale
There were 8,040 properties listed for sale on reiwa.com at the end of September, which is 1.8 per cent lower than August.
Low availability of properties to buy continues to be a key reason why WA is not seeing the significant fall in prices like the eastern states are, Mr Collins said.
Time on market
The median time to sell a house declined to 15 days in September, which is two days faster than August.
We are still well-below a balanced market which is about 30 – 40 days, with quick selling times and low stock for sale fueling buyer competition, Mr Collins said.
These market conditions still point towards a sellers market.
The suburbs to record the fastest selling times were Cooloongup (three days), Palmyra (five days), Warnbro (six days), Tapping (six days) and Success (six days).
The other fastest selling suburbs were Clarkson, Butler, Nedlands, Darlington and Seville Grove.
Perth rental market
Median rent price
Perths median rent price was $495 per week in September, which is $15 more than August.
It is not surprising that rent prices have increased given that listings are at a 12-year low, Mr Collins said.
Unfortunately, rents will continue to rise until we see more rental properties come on to the market.
Median leasing times
It took a median of 16 days to lease a rental during September, which is the same as August.
The fastest leasing suburbs were Maddington (seven days), Tapping (eight days), Byford (nine days), Tuart Hill (nine days) and Piara Waters (nine days).
Other suburbs to record fast leasing times were Greenfields, Warnbro, Yanchep, Joondanna and Gosnells.
There are clearly challenges in the rental market, however we have the most affordable housing climate in the country, an enviable lifestyle, plentiful job opportunities and a strong economy making our state a very attractive option for people wishing to move here, Mr Collins said.