Perth house rents recorded the strongest growth in the nation during the December quarter signalling a market turnaround, a new report shows.
And the apartment market performed better than in the past, with unit rents steady over the quarter and year at $300 per week, while yields improved 2.7 per cent over the quarter and 9 per cent over the year to 4.75 per cent.
“While unit rents have remained flat for seven consecutive quarters, this is a marked improvement following four years of weakening prices up until 2017,” Domain senior research analyst Nicola Powell said.
“All signs point to a turnaround in Perth’s rental market. Demand for rental accommodation will be supported by an improving jobs market and local economy, giving residents greater incentive to stay and new residents reason to relocate west.”
“If this continues, competition between tenants may start to emerge, which has most likely already begun for house rentals,” she said.
“Investors will find Perth a more attractive option as they seek better yields and growth prospects, particularly given falling property prices in the east coast.”
“The latest Bureau of Statistics data shows there were 1,352,100 people with jobs in WA in the November quarter – a net increase of around 20,000 jobs on the same period in 2017,” he said.
“WA’s mining sector is driving employment growth with the sector employing 111,800 workers in the November quarter, up from 87,800 in the comparative period in 2017.
“On a city-wide basis, tenants will have less bargaining power in 2019.”
Strong tenant activity was encouraging for the year ahead with landlords and tenants optimistic about the economy, Realmark Coastal managing director Sean Hughes said.
“The new year has seen the rental market shift into top gear with very strong tenant inquiry,” he said.
He said there was evidence of families relocating from the US and the UK, as well as West Australians returning from the east coast.
“We have also seen a high number of applications coming into the office from people who have recently sold their homes and want to rent while they take their time to find their next home,” he said.
Low stock levels were likely to continue as investors hesitate in the wake of the financial services royal commission, Mr Hughes said.
“Tenants are playing a very competitive game eager to lodge applications prior to viewing the property. This situation is further fuelled by low rental stock,” he said.
(we dont allow applications prior to viewing a property)
supplied by Domain January 9th 2019
Vivian's Residential have certainly noticed the number of applicants that come to the home opens and we are experiencing 2-3 applications on a few of the properties. We have not seen an actual rise in the rents as yet but we do expect that to follow on in the next few months.
We do advise owners to make sure that their properties are well maintained and to listen to their property manager who is probably telling them to paint, re carpet etc.
We do agree that some owners are selling up and deciding to rent for now and see what happens with the market, but I feel that they maybe selling at the bottom of the market and if they are buying within the next couple of years the market would have improved by then so they will be paying more.
The only person that wins out of this market are the people that bought 10+ years ago and are selling to downsize and pick up a bargain on their purchase.
Whatever happens you need to make some decisions on which way you are going to jump.
MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK AND THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!
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