RE88 Property Guide

Selling property, not promises Perth rental prices are rising faster than Sydney and Melbourne

Perth house rents recorded the strongest growth in the nation during the December quarter signalling a market turnaround, a new report shows. The city’s house rents also increased annually for the first time in half a decade, adding 2.9 per cent over the year and the same amount over the quarter to $360 per week, according to the latest Domain Rental Report. Rental yields for houses in the resources-affected market also showed green shoots, increasing 1.2 per cent during the quarter and 5.5 per cent over the year to 4.34 per cent. The apartment market performed better than in the past, with unit rents steady over the quarter and year at $300 per week, while yields improved 2.7 per cent over the quarter and 9 per cent over the year to 4.75 per cent. “While unit rents have remained flat for seven consecutive quarters, this is a marked improvement following four years of weakening prices up until 2017,” Domain senior research analyst Nicola Powell said. “All signs point to a turnaround in Perth’s rental market. Demand for rental accommodation will be supported by an improving jobs market and local economy, giving residents greater incentive to stay and new residents reason to relocate west.” Rents are rising faster for houses in Perth than in other capital cities. In 2018, Perth began to experience a broad tightening of the rental market driven by fewer rental listings, slowing construction of new apartments and stable population growth, Dr Powell said. “If this continues, competition between tenants may start to emerge, which has most likely already begun for house rentals,” she said. “Investors will find Perth a more attractive option as they seek better yields and growth prospects, particularly given falling property prices in the east coast.” Source: https://www.domain.com.au/news/perth-house-rents-are-rising-faster-than-sydney-and-melbourne- now-793813/ Cover Photo: 8/1 Harper Terrace, South Perth | For Sale - see page 27

Brendon Habak Director 0423 200 400 bhabak@re88.com.au

www.re88.com.au

2 The information and figures contained in this report have been compiled from information provided by the vendors. No warranty is given to their accuracy and all figures are subject to change without notice.