Search This Blog

Wednesday 12 October 2011

"Perth rents heat up"

Hi Followers

I came across this article that I thought was a good read for investor's:

As Perth house sales rise by only one per cent for the September quarter, and villas and townhouses experience a seven per cent drop, more individuals are turning to renting which means rising rents for landlords, according to the Real Estate Institute of Western Australia (REIWA).

Despite an increasing supply of ‘for sale’ stock being passed in to the Perth rental market, the strengthening rental demand has more than absorbed the surge, as overall properties available for lease plunge by 20 per cent for the September quarter, said the REIWA.

The plunging rental vacancy rate from 3.4 per cent in the June quarter to 2.8 per cent in the September quarter is an indication that more individuals are choosing to rent than own, resulting in stronger rental returns for landlords at an increased rate of four per cent or $15 per week on the average rent, said REIWA president David Airey.

This average rent increase  – the first mid-year rent rise since 2008 – nudges the annual increase to 6.8 per cent, he said.

However some areas in Perth have performed better than others.

The highest recorded average rent increase of eight per cent has been witnessed in the City of Melville due to strong multi-residential leases, while the City of Cockburn was up by five per cent to $400 and the City of Vincent/SE City of Stirling was up by five per cent to $405.

No increase was evident in the Cities of Swan, Rockingham-Kwinana, Belmont, Canning, or the southern areas of City of Joondalup due to what Airey said might be the “mix of property available for lease”.

“Both the overall median house and multi-residential rents increased by $10 per week for the quarter, taking the median house rent to $400 per week and the median unit rent to $380 per week,” he said.

This information was gathered from:
http://apimagazine.com.au/api-online/news/2011/10/perth-rents-heat-up

DEB BRADY
0405 570 903

No comments:

Post a Comment

Thanks for commenting, I hope we can talk more! Please note that any comments that are offensive, spam or not relevant to the topic you have commented on will not be posted.

If you would like to know more about exclusive properties, please visit our Facebook page.

https://www.facebook.com/Deb.Brady.Acton.Property