The latest data from REIWA on the Perth rental market shows two interesting trends.
Firstly, the average median rent in Perth has more than doubled over the past six years from a figure of $180 per week in June 2003 to $370 per week in March 2009.
It also shows a recent trend toward increasing vacancy rates.
In June 2003, the vacancy rate was 4.5%.
Over the next few years that figure gradually decreased to a low in March 2007 of 0.8%.
Since then, that figure had steadily crept up to 3% - nearly four times the rate that it was two years ago.
Why the increase?
Well one of the trends we’ve been noticing with the slowing sales market is that some people, are choosing to rent their properties out and wait for the market to turn rather than sell them at rock bottom prices.
As such, there are presently more rentals available than there were 12 months ago.
The other factor is the general economic downturn.
Premium rental property was extremely difficult to find in 2007 and most of 2008.
The fall in the commodity prices last October has impacted on the mining sector and those affiliated with that sector.
Mining executives (who were driving higher end rental values) have left in droves.
As a consequence, premium rental property (that above $1000 per week) has been the hardest to shift in recent months.
Having said that, low priced rentals and to a lesser degree, medim priced rentals, are still moving relatively quickly.
Jamie Harrington