10/07/2014 - 13:08

Residential rents continue decline

10/07/2014 - 13:08

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Residential rents continue decline
REIWA president David Airey.

Two separate measures of Perth’s property market have found residential rents are continuing to fall, due to an increase of stock on the market.

The Real Estate Institute of WA’s preliminary analysis of the June quarter showed Perth rents for houses and units were down $10 per week, to $450/week.

Also today, RP Data’s quarterly look at rents showed Perth house rentals were down 1 per cent over the three months to June 30, and down 5 per cent on the past 12 months.

REIWA president David Airey said the softening conditions were due to an increase in rental stock, with more than 5,824 on the market, a 30 per cent rise on the end of last year.

The most properties came to market in Cockburn and Kwinana, with 762 additional dwellings coming to market over the June quarter.

In Perth’s north-east region, through Swan and Kalamunda, 342 additional homes came onto the rental market, Mr Airey said.

Rental vacancies, he said, were up to 4.2 per cent, up from 3.2 per cent in June last year.

“There is now 43 per cent more rental stock available than the same time last year, which has been driven by a downturn in jobs, very little interest from investors, and the fact that many tenants have left the rental system to become first home owners,” Mr Airey said.

However, he said some suburbs had experienced a price rise in the June quarter.

“The cities of South Perth, Victoria Park, Belmont, Swan, Kwinana and Rockingham all experienced a median rent rise of $10 per week, while Armadale was up by a more modest $5 per week to $410,” Mr Airey said.

“Falls were most notable in the western suburbs where a drop of $30 across the board to around $550 per week is common, but agents are reporting much more severe price slashing in high-end rentals.

“The more expensive, executive properties over $800 per week that were in such strong demand a few years ago are now very slow to rent and asking rents for these have dropped by up to 25 per cent.”

Across Australia, RP Data’s figures showed capital city house rental rates remained unchanged at $430/week, while unit median rents rose 1.2 per cent to $420/week.

House rents in Sydney, Brisbane, Adelaide, Darwin and Canberra were all steady, while Melbourne, Perth and Hobart all recorded declines in weekly advertised rents.

Adelaide was the only city in Australia to record a rental increase in 2014 to date, RP Data said. 

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