Many considering a move to Western Australia might ask themselves, how much is rent in Perth? Bursting with radiant sunshine, Perth is by far one of the best places to reside in Australia.
Boasting glittering beaches, warm weather, heartwarming people, delicious foods, and impressive flourishing parklands, it is not shocking to see the growth of the house rental prices in this capital city of Western Australia.
Studies of Perth’s rental prices in recent times have shown a considerable outstanding performance in the rental space compared to what has been experienced in the last couple of years. Property investors are also showing keen interest, always scouting out the best places to invest in Perth.
In this article, we will talk about a few rental market issues ranging from the average cost of rental properties in Perth, what the rental market looked like in the past, what it is looking like presently and touch on the Perth property market.
So, come with us as we explore rental properties in Perth.
Average rent in Perth
In Perth, the average rental price is not fixed as the cost varies depending on a lot of factors, including the apartment’s quality, size, and location.
According to Expatistan, the median rent in Perth as of August 2022 is about $523 per week for houses and about $460 per week for units.
This is impressive as it is a commendable increase from what was experienced in the previous years. So, if you’re interested, you can definitely find cheap apartments for rent in Perth within your budget.
Take the year 2021, for example. According to Selectra, the average rent for tenants in Perth as of December 2021 is about $390 weekly for apartments and about $460 weekly for houses.
Going by that data, there is about a 16.5% increase in the average rent of units and a 12% increase in the average house rents.
As admirable as these numbers are, especially for landowners, Perth’s rental market has not always been fireworks and fun. Before the year 2020, the property rental market in Perth wasn’t something to boast about.
Average rent in Perth over the past five years ( 2017 – 2022)
As mentioned earlier, the rental property market in Perth wasn’t always rosy. There were years when the market was a crippling economy that was hanging on a thread to survive between the years 2017 to 2019.
But in 2020, Perth’s rental market “struck gold” and experienced a skyrocketing increase in apartment and home prices.
So, let us analyze how Perth’s property market moved from a struggling industry to a highly competitive one starting in 2020.
2017
In 2017, the average rent fluctuated, collapsed, and dunked to sit at $350 per week in the later part of the year – December. About 13,555 properties were leased at that time too. Also, there was about a 1.6% decrease in leasing activity in December 2017, with quarterly leasing declining to about 8.4%. People could snatch up a hot property at a low price in many surrounding suburbs.
Vacancy rates were not left behind as they also suffered the same blow, with the vacancy rate dropping to 5.5% as of December 2017.
2018
The last quarter of 2017 showed a glimmer of hope. There was a type of improvement in the rental market in Perth. In 2018, specifically in August, there was a decrease in the vacancy rate to about 4.5%, as about 4,805 rental spaces were leased out in that same month of August.
This might not be a big miracle, but it was better than what was obtainable in 2017. There was also an improvement in the leasing time, as the average leasing time as of September was about 46 days. It took Perth’s property landlords only 46 days to lease out a rental. On the other hand, average rent steadied at $350 per week.
2019
In 2019, according to ABC News, the rental vacancy rate fell from 7.3% in 2018 to a devastating 2.5%. At that level, the demand for rental properties by tenants started to overtake the supply.
Although average rent stood unwavering at $360 and $340 per week, respectively, in the last quarter of that year, the sweet decline of vacancy rates cum stability in rentals level shows a silver lining for the rental market in the coming year.
2020
With the COVID-19 virus ravaging the world, the rental market in Perth took a new shape. Things were moving up. Rent rates rose by 0.8% as of November 2020. Also, the vacancy rate decreased to about 0.9%, and average rents rose to $364 and $484 per week, respectively.
2021
Perth’s property market boom that started in 2020 extended to 2021. This year saw a record-high increase in the market. Vacancy rates steadied at 0.7% as of August that year. As of June, the average rent for house rentals saw its largest increase to $450 per week in Perth, while that of an apartment moved to $380 a week.
The average rent in Perth for houses from the past five years (2017-2021)
The average rent for property moved from $370 to $420. But before then, here is an analysis of the rent in the past year.
- Average Weekly house rent 2017: $350
- Average Weekly house rent 2018: $350
- Average Weekly house rent 2019: $360
- Average Weekly house rent 2020: $484
- Average Weekly house rent 2021: $420
The average rent for units from the past five years (2017-2021):
- Average weekly unit rent 2017: $300
- Average weekly unit rent 2018: $320
- Average weekly unit rent 2019: $340
- Average weekly unit rent 2020: $364
- Average weekly unit rent 2021: $370
What the Perth rental market looks like for the rest of 2022?
As stated earlier, the property market in Perth for 2022 looks great, and this is expected to last through 2022. As predicted by The Property Tribune, the property rental rates are expected to increase to about 10% from what was obtainable in 2021.
Is Perth affordable?
Judging by the rise in the rental market in the country, one would think that this surge would affect the cost of living in Perth, but it doesn’t! Prices of food and other items are quite stable. It is a great location for families and even students.
Living in Perth is affordable compared to the other major Australian capital cities. And it might take a while before Perth’s rental market would surge to reach the level of other cities such as Melbourne and Sydney.
Rent is not all that makes Perth the affordable city it is now, and the following factors lend their quota too: mortgage repayments, home insurance, water rates, and local government rates.
Which suburbs are the cheapest to rent in Perth?
If you love living in a suburb, there are several ones in Perth that you can rent without breaking the bank. Some of the cheapest suburbs to rent in Perth are; Armadale, Coodanup, Mandurah, Medina, Kelmscott, Osborne Park, etc., and many more.
