10/02/2011 - 06:39

Rents climb for first time in 12 months

10/02/2011 - 06:39

Bookmark

Save articles for future reference.

Residential rents have increased for the first time in a year, according to the latest market analysis by the Real Estate Institute of Western Australia.

Rents climb for first time in 12 months

Residential rents have increased for the first time in a year, according to the latest market analysis by the Real Estate Institute of Western Australia.

Median rents increased $10 to $380 per week over the December quarter, REIWA's figures showed.

REIWA president Alan Bourke said seasonal factors in the March quarter, such as added demand from university students, tended to tighten rental vacancy rates.

"We saw median rents go from $360 to $370 this time last year but we didn't experience any further rises or falls through all of 2010," Mr Bourke said

The vacancy rate for available rental properties in Perth stood at 3.4 per cent in the three months to January, the same as the revised figure for the December quarter.

This is well under the vacancy rate of 4.1 per cent in the March quarter last year.

Mr Bourke said it was unclear if upwards pressure on rents would continue through 2011, but suggested that if sellers were struggling to find buyers some might consider renting their properties for a while, increasing the vacancy rate and keeping a lid on further rent increases.

"The housing system is all about supply and demand. We may see rents increase further but it will depend on demand and this is driven by the broader economy and the availability of jobs," Mr Bourke said.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options