Perth rental crisis worsens

Perth’s rental vacancy rate has hit a new low of 0.4 per cent, while the cost of renting a residential property has skyrocketed.

Recent data from REA Group’s Proptrack shows that Perth’s rents grew by 15.5 per cent in the past 12 months, to a median of $635.

This represents the fastest rate of any Australian city, given the 13.6 per cent average year-on-year growth for capital cities.

Nationally, the average median rent is $625 for cities and $520 for regional areas.

Western Australia’s regional rents are at about $600.

The decreasing availability of rental properties is a driving factor behind surging rents, with data from the Real Estate Institute of Western Australia showing Perth’s rental vacancy has hit a new low of 0.4 per cent in March.

The previous low was 0.6 per cent, in December 2022, while a normalised market is about 2.5 to 3 per cent.

Vacancy rates rose to 0.7 per cent in January 2023 and remained at that level for more of last year and into this year.

REIWA president Joe White said there were some signs that the market was easing, however.

“Some of our members are reporting there has been a slowdown in demand for the higher end of the market,” he said.

Mr White pointed to reiwa.com data that showed homes prices at more than $1,000 per week took a median of 20 days to lease in the March quarter.

“Homes priced under $1,000 took a median of fifteen days to lease,” he said.

“In some suburbs with a median dwelling rent below the current Perth median of $649, homes leased in ten to eleven days over the quarter.

“Demand remains strong in the more affordable price brackets. While in the mid range, members are reporting numbers at home opens are declining in some suburbs, however, they are still receiving multiple applications."

Perth’s house prices are also rising at the fastest rate in the nation, with recent CoreLogic data showing the city’s median value reached $703,502 in March.