Rental squeeze continues in Perth
The average price of a rental property in Perth continues to rise, recent data shows - a trend that ...
The average price of a rental property in Perth continues to rise, recent data shows - a trend that may be welcomed by investors with leased real estate in the city.
According to the Real Estate Institute of Western Australia (REIWA), in the three months to February, median metropolitan rents increased 4.4 per cent to $470 per week.
The latest figures also showed that since January, the average house rental lifted $10 to $480 per week, while units, villas and apartments recorded a $30 price increase to an average $450 per week.
David Airey, REIWA president, said the increases are surprising considering vacancy rates dropped during the same period - typically meaning downward pressure on rental costs.
He explained: "The vacancy rate has actually eased off a little, lifting from 1.9 per cent in December to two per cent currently, so it's unusual to see rents going up at the same time as supply has improved."
However, Perth vacancy rates are still well below the three per cent considered healthy for capital markets, Mr Airey added.
"What the data might be indicating is that while there is a bit more stock around to choose from and demand from tenants has slowed, they are none the less choosing to pay a premium for those homes that are of better quality and in more preferred locations."