Perth ‘urgently’ needs more investors: REIWA
Perth’s vacancy rate is at the lowest level it’s ever been after falling to an uber-low 0.3% in October, according to Domain.
To put that in perspective, that means only three out of every 1000 rental properties were untenanted in Perth during the month.
Unsurprisingly, the lack of properties is putting upwards pressure on rental prices, with the Real Estate Institute of Western Australia reporting the city’s median rent price was $500 per week during October, $5 higher than the previous month.
For comparison, 12 months earlier, the average rental in Perth would have set you back $430 per week – giving an annual growth rate of 16.3%.
And it’s not just Perth that’s suffering from the rental squeeze, but the entire state – with regional WA seeing total rental listing numbers on realestate.com.au plummet by 11.6% in September when compared to the same time last year, according to PropTrack.
Shortage set to worsen
REIWA chief executive Cath Hart said rents would continue to rise while there is a rental shortage.
“We urgently need more investors in the market to help provide housing and ensure we keep rents affordable,” Ms Hart said.
But property investors appear to be in short supply, with the most recent data from the Australia Bureau of Statistics finding investor lending in WA fell 8.7% from August to September.
At the same time, WA’s population is growing as people are drawn to the state by the booming local economy, strong resource sector and housing affordability.
WA recorded the second-fastest population growth in Australia, after the state’s population added more than 32,000 residents in the year to March, according to the most recent data from the ABS.
Is now a good time to invest in Perth property?
If your financial circumstances allow, then the answer could very well be ‘yes’.
Well, for one thing, Perth’s property market is proving very resilient, with median values only falling by 0.2% in October, the smallest decline out of all capital cities in CoreLogic’s home value index.
For another, if you buy a quality property in a quality location, history suggests you’ll be sweetly rewarded, with Perth dwelling values jumping 303% over the 30 years to July 2022, according to CoreLogic.
Want to buy an investment property in Perth? As an expert Perth buyer’s agent, Resolve Property Solutions can help. To discuss your options, book a free strategy call with Peter Gavalas.