Current data from the Real Estate Institute of Western Australia is showing that the metropolitan rental market is easing with many owners having to adjust rents to meet changed conditions.
The vacancy rate has lifted from a tight 1.9 per cent at the end of last year to around 3.1 per cent in September with current listings sitting at 3,850 dwellings.
This is 80 per cent more stock than the same time last year and much of it is being driven by tenants leaving their rental to buy a home of their own.
REIWA data show the overall median rent dropped by $5 to $470 per week, however, results are patchy across Perth and some falls were greater than others.
Median rents have come down by $10 per week in the Bayswater and Bassendean areas, $15 in Fremantle, $22 in Melville, $30 in the City of Perth, $25 through South Perth and Victoria Park, $20 in Vincent, $25 across the western suburbs, $23 in Mundaring, $20 in northwest Wanneroo, $10 through northeast and southern Wanneroo, $10 in Cockburn and also $10 in Rockingham.
Typically people are now paying around $475 for a house, down by $5 on the June quarter, or $450 for a flat, unit, apartment or villa, which is down by $10.
Around 65 per cent of vacant rental properties are broadly within a 10km radius of the CBD and this central region of Perth has experienced a decrease in rental listings during the September quarter.
Despite this overall fall in the number of available rental homes, some sub-markets such as Bassendean- Bayswater, Belmont and South Perth-Victoria Park saw increases of between 5 and 16 per cent for the quarter.
While in the eastern part of the City of Stirling, places like Joondanna, Yokine and Tuart Hill saw an increase of listings of around 5 per cent.
I caution tenants against breaking their fixed term lease to find a better or cheaper property in the current market. Costs associated with breaking a lease could outweigh the benefits.
Tenants should talk with their property manager if they are thinking of a break-lease and do the sums before making a decision.
Equally, it’s important for owners to understand that conditions have changed and they need to adjust their expectations of rental return by talking to their property manager to set the right price.
This article was originally published on reiwa.com.