Perth’s rental market, which has seen significant rent increases in recent years, might be showing some signs of settling down. Here’s a closer look at the trends:

Rent Prices

Median rent prices have remained steady for the past two months, at $650 per week for dwellings and houses, and $600 per week for units according to REIWA data. Property managers are reporting some properties are taking longer to lease, and in some cases, landlords may be offering incentives to attract tenants.

Rental Availability

There’s been a gradual increase in the number of rental listings available over the past few months. REIWA reported 2,409 properties available for rent at the end of May, which is 11.3% higher than April and 20.5% higher than the same time last year. This means renters may have more options to choose from compared to earlier this year.

Affordability Challenges

Despite the recent stability in prices, rents are still considerably higher than they were a year ago. REIWA data shows the median unit rent recorded the most growth, up 20.0% since May 2023. The median dwelling rent rose 18.2% over the same period, while the median house rent rose 14.0%. This is putting pressure on renters, with some having to downsize to smaller accommodations or share housing with more people to manage the cost.

Experts’ Cautious Outlook

While these trends are promising, REIWA CEO Cath Hart cautioned that it’s still too early to say definitively whether this signals a long-term shift in the Perth rental market. The vacancy rate remains low, and there haven’t been significant increases in the number of new rental properties entering the market. Ms. Hart said REIWA will continue to monitor the situation to see if the current moderation becomes a longer-term trend.

Perth Property Sales Market

On the sales side, Perth’s property market continues to see climbing prices. The median house price was $650,000 in May, up 3.2% on April and 17.1% higher than May 2023. Demand for housing remains strong, driven by factors like population growth and a limited supply of available homes according to REIWA.

In Summary

Perth’s rental market may be showing some signs of stabilization after a period of significant rent increases. Median rents have remained steady for the past two months and there’s been an increase in the number of rental listings available. However, rents are still considerably higher than they were a year ago and the vacancy rate remains low. Experts are cautiously optimistic about the future direction of the rental market, but it’s still too early to say for sure. The Perth property sales market remains strong with rising property prices.