Perth rents plummet in December: REIWA

New data from the Real Estate Institute of Western Australia has found that Perth’s rents have dropped in December, with the median rent for the metropolitan area falling $10 to $440 per week.

REIA president David Airey has found that this drop is more prominent for apartments and villas, with houses weathering through a little better.

“Houses are typically holding a rental median of $450 per week, while units, apartments and villas have dropped to a median of around $420 per week,” Airey said.

The overall vacancy for Perth has lifted to 4.2%, with 6,300 rental properties vacant. Usually, a “normal” market for Perth is 3%, according to Airey, who says that the high rate is being driven by a slowing growth in population as a result of fewer jobs.

The data released by the REIWA sees the stock of property for lease increased by 10% over the December quarter – up some 37% over the year.

“The increase in stock over the past two years can be directly attributed to the rapid turnaround in migration which peaked in the year to September 2012. The latest reading of WA’s population growth for the year to June 2014 has it falling to its lowest level in eight years,” Airey said. 

“The available rental stock bottomed-out at around 2,100 dwellings in September 2012 and has grown by 200 per cent since then, lifting the vacancy rate from 1.8% to more than 4% over the last couple of years,” he said.

Areas that have seen the largest increases in rental listings include:

• Belmont
• Kwinana
• Armadale
• Wanneroo’s northwest corridor

However, Kwinana is up by $5 over 2014, to $390 per week – the only area to report an increase in median rent. Armadale is currently the most affordable area to rent – with a $370 per week median.

The biggest drops in median rent over the year (drop is in brackets):

• Perth City ($65)
• Vincent ($50)
• Stirling South-east ($50)
• Mundaring ($45)
• Wanneroo South ($40)
• Serpentine/Jarrahdale ($30)
• Stirling West ($30)
• Western Suburbs ($30)
• Canning ($25)
• Cockburn ($25)

Source: REIWA