Leasing activity healthy: Groves

Real Estate Institute of Western Australia boss Hayden Groves says residential leasing activity continues to improve across the Perth metro area, as the central sub-region’s median rent falls to $380 per week.

Leasing activity lifted 4 per cent in the three months to September, the latest Reiwa data has found, with the south-east and central sub-regions being the standout performers after lifting 7 per cent and 5 per cent respectively over the quarter.

The central sub-region's median rent fell $10 to $380 per week, while the north-east sub-region experienced the same price drop to $350.

The north-west sub-region's median fell $5 to $370, while the Perth metro region fell by the same amount to $365.

The south-east and south-west sub-regions were both unchanged at $340 and $350 respectively.

“Perth’s rental market has certainly presented its challenges in recent times, however it’s pleasing to see that leasing activity is healthy across the metro area,” Mr Groves said.

“Tenants clearly recognise that there is a good opportunity in the current market to secure themselves a new lease at a more affordable price.”

Rent listings fell 2 per cent over the same period, while the average number of days it took to lease a rental was unchanged at 53 days. The vacancy rate for October came in at 6.9 per cent.

“Although listings remain at elevated levels, we are seeing signs that stock volumes have begun to stabilise with the rate of increase slowing in recent months,” Mr Groves said.

“There was also little change to Perth’s overall median rent price in the three months to October, with the price adjusting back slightly to $365 per week.

“While the Perth rental market clearly still presents some difficulties for investors, it’s important to remember that although rents have fallen so too have interest rates, with many investors able to ride out the downturn as a result.

“Perth investors are well advised to heed the advice of their property managers to help ensure their rental appeals to tenants in what is a competitive market,” Mr Groves said.