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CAPITAL PROPERTY ADVISORY | NATIONAL BUYER'S AGENCY
Perth’s rental boom underpins bright property market outlook
Perth’s rental boom underpins bright property market outlook 13 November 2020 Matthew Hughes Matthew Hughes, Managing Director at Capital Property Advisory November 10, 2020 Back in June, we presented a case for cautious optimism in the Perth property market. All indicators are that this case is becoming ever more sound, led with gusto by a rental market boasting near-zero vacancy levels and showing promise of future growth in rental returns. September quarter rental market data delivered a vacancy rate of 0.9% against 2% vacancy at the end of June, and 2.5% a year ago. On 1 November, there were 2,784 properties listed for rent compared to 5,904 on the same date in 2019 – less than half the number of properties available. Ordinarily, when vacancy rates are so low, rents could be expected to rise markedly as competition increases. However, under current COVID-19 legislation, rents cannot rise while an existing tenant is in a property, even when the lease comes up for renewal. Prices can only increase when there is a changeover in tenancy, and landlords cannot ask a tenant to leave. REIWA has announced that rents are already rising by at least 10 per cent when new tenants are signing
What is the property outlook for Perth? Certain factors tell the tale including the mean rents being achieved in the Perth market