Published on March 19th, 2013
Increase in Perth median rent in February quarter
Residential real estate in Perth is commanding higher weekly rent, rising by 4.4 per cent over the three months to February.
That's according to the Real Estate Institute of Western Australia (REIWA), which found that the overall median rent has risen from $450 to $470, representing a year-on-year increase of $60.
Median rent for houses has risen from $470 to $480 per week since January, with attached dwellings having seen a $30 rise since the beginning of the year, increasing to $450 per week.
This occurrence surprised REIWA president David Airey, who explained that this is an anomaly because demand for rental properties was more subdued during the March quarter than in previous years.
"The vacancy rate has actually eased off a little, lifting from 1.9 per cent in December to two per cent currently, so it’s unusual to see rents going up at the same time as supply has improved," Mr Airey said.
"What the data might be indicating is that while there is a bit more stock around to choose from and demand from tenants has slowed, they are nonetheless choosing to pay a premium for those homes that are of better quality and in more preferred locations."
It is worth noting that a vacancy rate of three per cent represents a balanced market.
Demand for real estate in Perth has also been reflected in the property values, as median real estate prices hit $500,000 in the final quarter of last year.
Based on figures compiled by the REIWA and the Chamber of Commerce and Industry, the half a million dollar mark is 6.4 per cent higher than the same three-month period in 2011.
It is expected that the March quarter will reflect the high of $505,000 that was experienced in the same period in 2010.