This article is from the Australian Property Journal archive
PERTH's median rent has declined further with the top end of the market feeling the biggest pain, according to the Real Estate Institute of Western Australia.
REIWA president David Airey said preliminary analysis for the June quarter showed the median rent fell by $10 to $450 per week.
The median rent for a house was $460 per week, whilst units, apartments and villas were $445 per week.
Airey said the general softening in rents was due to the increase in rental stock, which had jumped by almost 30% since the end of last year to 5,824 properties.
As a result, the vacancy rate has risen to 4.2%, up from 3.2% in June last year.
“There is now 43% more rental stock available than the same last year, which has been driven by a downturn in jobs, very little interest from investors and the fact that many tenants have left the rental system to become first home owners,” he added.
Airey said the top end of the market is feeling the biggest pinch.
“Falls were most notable in the western suburbs where a drop of $30 across the board to around $550 per week is common, but agents are reporting much more severe price slashing in high-end rentals.
“The more expensive, executive properties over $800 per week that were in such strong demand a few years ago, are now very slow to rent and asking rents for these have dropped by up to 25%,” Airey said.
Across Perth, the results were patchy and some areas recorded a lift in prices due to localised demand.
The cities of South Perth ($470), Victoria Park ($470), Belmont ($460), Swan ($430), Kwinana ($400) and Rockingham ($410), all experienced a median rent rise of $10 per week, while Armadale was up by a more modest $5 per week to $410.
The City of Vincent ($500) dropped $20, as did Fremantle ($530), City of Perth ($550), Wanneroo North East ($460), Stirling West ($500) and Kalamunda ($450).
The southern part of the City of Joondalup dropped by $25 to $500 per week, its northern area fell $15 to $460 per week and the City of Melville dropped $15 to $500 per week.
Property Review
