Perth Rental Market Update: October 2024
The Perth rental market continues to present both challenges and opportunities as we head into the final quarter of 2024. With ongoing demand, evolving trends, and government initiatives, renters and landlords alike are navigating an increasingly dynamic market. Let’s take a closer look at what’s shaping the rental landscape this October.
1. Rental Demand Still High
Despite fluctuations in the broader housing market, rental demand in Perth remains robust. The ongoing shortage of rental properties continues to put upward pressure on rental prices. Many factors contribute to this demand, including:
- Population Growth: Perth continues to attract interstate and international migrants, drawn by lifestyle benefits, job opportunities, and relatively affordable housing compared to other capital cities.
- Low Vacancy Rates: Rental vacancy rates in Perth remain well below 1%, making it difficult for tenants to secure properties. This low supply increases competition among renters and results in higher asking prices for properties.
2. Increasing Rental Prices
Rental prices have surged this year, with no immediate sign of a slowdown. According to recent data, median weekly rents in Perth have seen a year-on-year increase of around 10%. In October, the average weekly rent for a house sits at approximately $600, while apartments are averaging $470.
For landlords, this presents a lucrative opportunity to maximise rental yields, but it’s important to balance this with tenant retention strategies, as many renters are feeling the squeeze of these rising costs.
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3. Tenants Feeling the Pinch
With rising rents and cost-of-living pressures, many tenants are struggling to keep up. In response, we’re seeing a growing trend toward share housing, with renters choosing to split costs with housemates to afford quality homes in desirable locations.
Additionally, some tenants are opting for longer lease terms to lock in rent before further increases occur. As a result, landlords are experiencing longer tenancies, which can offer more stability in rental income.
4. Government Interventions
In light of the challenges facing renters, the WA Government has introduced several initiatives to alleviate pressure, including:
- Increased Supply Initiatives: Programs aimed at encouraging new developments, particularly affordable housing, are being rolled out to address the shortage in rental properties.
- Rent Relief: Some renters may also benefit from government-funded rent assistance programs, providing temporary financial relief for those struggling to meet their obligations.
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5. What’s Ahead for the Perth Rental Market?
Looking ahead, the rental market in Perth is likely to stay competitive. With rental supply constraints expected to persist into 2025, tenants may continue to face difficulties finding affordable properties. However, for investors, Perth remains an attractive market, with rising rental yields and sustained demand.
Landlords should keep an eye on market trends, tenant affordability, and government policies to navigate the evolving landscape. Meanwhile, renters are encouraged to act quickly when securing properties and to explore all available financial support options.
Final Thoughts
The Perth rental market in October 2024 highlights the growing pressures on tenants due to high demand and limited supply. While landlords are benefiting from increased rental yields, tenants are finding themselves in a more competitive environment. For both parties, staying informed and adaptable is key to navigating this dynamic market.
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