Perth's rental market continues to stabilise Extract from REIWA.com.au | 8th November, 2019

Asset Management Newsletter

December 2019

Asset Management Newsletter | December 2019 1

18 Norfolk Street, Fremantle WA 6160

www.ScoopProperty.com.au

T: 08 9432 7555 F: 08 9432 7575

For the second quarter in a

row, Perth’s rental market

has continued to improve

with the vacancy rate

lowering to 2.5 per cent,

172 suburbs recorded an

increase in leasing activity

and 110 suburbs recorded

an increase in median

weekly rent.

The REIWA Deputy President, said

Perth’s rental market appears to be

building on the momentum of the

latter half of 2019.

“This is very encouraging – not just

for the rental market, but also for

the overall property market as

historically, the sales market follows

the rental market during a

recovery”.

Median rent prices

While 110 suburbs recording an

increase in median rent price, there

were 117 suburbs that saw no

change with reiwa.com data

showing Perth’s overall median rent

remains at $350 per week.

“With only seven more suburbs

separating the two, we can see how

close we are to potentially seeing an

increase in Perth’s overall median

rent price, which will be the first time

since April 2017,”.

“From a suburb level, reiwa.com

data shows that Madeley had the

biggest growth for the quarter with

an increase of $25 per week,

Munster closely followed with a $23

increase, then Cannington, Carlisle

and Carramar which all saw an

increase of $20 per week.

Leasing activity

There were 13,356 rental properties

leased in Perth during the

September quarter, which is 12 per

cent more compared to the

previous quarter.

“All six Perth sub-regions saw an

improvement in leasing volumes,

with the biggest improvements

occurring in Mandurah (up 21 per

cent), Inner region (up 18 per cent)

and South West region (up 16 per

cent),” the REIWA Deputy President

said.

Asset Management Newsletter | December 2019 2

Perth Rental Market Snapshot REIWA members reported there were 6,022 properties for rent in Perth

at the end of this week, which is two per cent less than last week.

This This week's rental listings figure is two per cent higher than levels seen four weeks ago but are 17 per cent lower than levels seen a year ago.

Properties Listed for Rent Week Ending 1st December, 2019

Currently: 6,022

4 Weeks Ago: 5,912

Last Year: 7,276 Diane Da Luz Managing Director

0433 205 227 9432 7555 diane@ScoopProperty.com.au

“At a suburb level, reiwa.com data

shows Riverton, Dudley Park,

Success, Como and Mullaloo saw

the biggest growth in leasing activity

levels over the quarter.”

Listings for rent

Rental listings declined 17 per cent

Perth's rental market continues to stabilise Extract from REIWA.com.au | 8th November, 2019

during the quarter, with 6,169 listings

recorded at the end of the

September 2019 quarter.

“From an annual perspective listings

are down 19 per cent and on

average are taking six days less to

lease. With the vacancy rate at 2.5

per cent and listings continuing to

lower, we could see more pressure

put on the rental market which will

lead to an increase in Perth’s overall

median rent price,” Ms Joyce said.

“With the Perth

rental market finally

starting to re-balance,

now is a good time for

tenants to secure their

new rental or look into

a longer-term lease

before rents

potentially rise.”

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Asset Management Newsletter | December 2019 3

has risen, the increase in family

income and the decrease in the

interest rates have negated this rise,”

Mr Kelly said.

“Similarly, with a small decrease in

average rents, the percentage of

income to meet these payments has

also declined.“

“The total number of loans

increased over the September

quarter by 10 per cent and

the number of new loans to

first home buyers increased by

9,270, some 13.6 per cent over

the quarter and 6.8 per cent

over the year.”

First home buyers take advantage

of low interest rates Extract from REIWA.com.au | 4th December, 2019

Housing affordability has

improved across the

country, seeing the highest

per cent of first home buyers

in the marketplace in eight

years, according to

research from the Real

Estate Institute of Australia.

REIA President Adrian Kelly said the

September quarter 2019 edition of

the REIA Housing Affordability

Report found housing affordability

improved in all states and territories,

except Tasmania, while rental

affordability improved across the

nation.

“Although the average loan amount

“The percentage of first

home loans to all home

loans, excluding

refinancing, is at 29.4 per

cent which is the highest

since 30.3 per cent in

December 2011. The

largest increase was in the

Australian Capital Territory

at 61.1 per cent, while

South Australia and the

Northern Territory bucked

the upward national

trend.”

Asset Management Newsletter | December 2019 4

Merry Christmas From all of the team at

The number of first

home buyers in WA

increased to 3,817 in

the September

quarter, an increase of

9.9 per cent over the

quarter and an

increase of 6.3 per

cent points compared

to the same time last

year.

Western Australia

Over the September quarter,

housing affordability in WA improved

with the proportion of income

required to meet loan repayments

decreasing to 22.1 per cent, a

decrease of 0.3 per cent for the

quarter and a decrease of 0.4 per

cent compared to the September

quarter 2018.

Of all Australian first home buyers

over the quarter, 12.7 per cent were

from WA while the proportion of first

home buyers in the state’s

owner-occupier market was 37.0 per

cent.

Rental affordability in WA also

improved during the September

quarter with the proportion of family

income required to meet the

median rent decreasing marginally

to 16.3 per cent, a decrease of 0.1

per cent over the quarter but an

increase of 0.2 per cent compared

to the year

First home buyers take advantage

of low interest rates Extract from REIWA.com.au | 4th December, 2019