Our Rental Wrap - March 2023
While rising interest rates, inflation, and some economic uncertainty may have dampened homebuyer demand around the country, it has been a very different story here in Perth, particularly for our rental market. And it appears our pretty city has all the ingredients to become one of the nation’s stand-out property performers over the coming couple of years as well!
Perth’s suburbs are experiencing incredible demand for rental properties, with record low vacancy rates of just 0.7% (March 2023). This growing demand is putting strong upward pressure on rents, with the median price for a Perth house rising to $550 per week. While this is sobering news for Perth renters, it does mean Perth landlords can expect to continue receiving a solid income from their property investment.
Additionally, when compared to other capital cities around the country, Perth property is relatively affordable (with recent CoreLogic data revealing the median house price in Perth to be $561,740 – almost half of Sydney’s median dwelling price). A strong and diverse local economy is continuing to drive population growth, which in turn is expected to put further pressure on short supply rental stock.
Closer to home, C&CO Real Estate listed and leased four properties last month. While the average advertised price of these properties was $595 per week, these properties leased for an average $37.50 over the asking weekly rent. Demonstrating there is still extremely strong tenant demand in the local marketplace, C&CO Real Estate also saw an average of 10+ groups through every advertised property inspection.
These numbers are in addition to the many enquiries we field each week from tenants looking to relocate to the greater Fremantle area from interstate and overseas. Putting these numbers into perspective, a vacancy rate of around 3% is considered a sign of a stable rental market; with vacancy rates for Perth properties sitting below 1% since September 2020, it is safe to say demand for Perth rental properties has skyrocketed!
Property experts are calling for more would-be landlords to invest in local property to help alleviate our genuine rental shortage. But obviously real estate investment comes with any number of risks. From purchasing the perfect rental property to finding the right tenants, ensuring you receive the correct rental return, and keeping the property in tip top condition, there is a lot to plan and consider! Effective property management services can help lower these risks; allowing you to make the most of your investment while advising you around the relevant tenancy laws and legislation.
Working with a local area agent with knowledge of the latest market trends and insights is your first step in finding the right property for your investment goals and circumstances. So, if you are looking for advice about becoming a landlord, or searching for a genuine and trustworthy team to handle your investment property with care, C&CO Real Estate’s experienced and professional property management team is here to help #youlllovewhatwedo
