Perth’s rental market has softened considerably over a decade due to a combination of factors. But will rents continue to fall in Perth? So far, they have fallen by 10% since 2018, which is the lowest level they’ve been at since 2011.
They are now back to levels seen in 2003 and 2004 when the average rent was $502 per week and $435, respectively. Perth house prices are increasing as compared to the rental properties in the seller’s market. Let’s dig deeper and learn more.
How much is the rent in Perth?
You must be wondering what the state of the Perth rental market is. Are the Perth rental prices high? The average rent for a 2-bedroom apartment in Perth is $500 per week, which means renting an apartment is around $1,200 per month.
If you’re on a budget but still want to live in the city, this may be affordable for your needs. However, if you have the money and would prefer something closer to nature or even just out of town (which can often be cheaper), then renting might not be such an attractive option anymore.
Rents are falling in Perth because more people are moving into the city than before. In fact, according to figures from RP Data released last year, more people moved into Australia’s second-largest city than any other location during the 2017/2018 fiscal year: 25% compared with 19% for Sydney.
Is Perth in a rental crisis?
In short, a rental crisis is when the number of properties available is less than the number of tenants looking for a place to rent. Perth has been facing tight rental market conditions for more than a decade.
The Perth rental crisis has been caused by a combination of factors, including an increase in house prices and an influx of property investors who want to get in on Perth’s rapid growth.
Therefore, the rental supply is struggling in market conditions because of the decreasing property prices. When the price rises in the market, rental demand also increases in the housing market.
Will rent prices go down in 2022 Australia?
The answer to this question is yes. The long-term trend of falling rent prices in Perth will likely continue into 2022. However, you should note that rents are falling more slowly than they did between 2003 and 2008.
Rents have fallen by an average of 5% each year since 2012, which means that Perth has had five years without a rise in the cost of renting an apartment or house.
Will house prices drop in 2022 Perth, WA?
You may wonder if Perth’s rent prices will continue to fall in 2022. While rents will likely drop by 1.2%, you can expect house prices to rise by 5.7% and grow faster.
If you plan on buying residential property, now would be the time. You can have a look at what’s available by checking out the rentals in Perth on Soho.com.au and registering to get property matches.
Why is rent so high in Perth?
Rent prices have been rising in Perth for several reasons. One is the high cost of land, which has increased by more than 20% over the past decade. Another is the high construction cost, which rose by more than 25% during that time.
Landlords increase Perth’s rental yields because they know that only so many people can afford to pay rents above $600 per week (in areas like Subiaco). It means less demand from when a guest becomes a tenant looking for homes and more supply from landlords seeking higher investment returns.
Is Perth property about to boom?
The Perth property market has been going down for some time now. However, there are signs that it may be about to turn around, which is good news for your Perth rental yield. The reasons why this could happen are varied and include the following:
- Interest rates have been increased several times over the past year. This means fewer people can afford to buy homes and are renting instead which could increases changes of a higher rental yield.
- Employment growth in Western Australia has remained strong over the past few years which means more people can afford higher rent prices.
Is Perth property overpriced?
In Perth, rents are low compared to other capital cities. It is a suitable city for people who want to live in the city and save money on rent with a more affordable housing climate. But it’s also bad news for investors who want to buy property.
If you are an investor looking to buy a rental home in Perth, then there is no need to worry about overpaying. This is because most properties are still undervalued compared with other capital cities around Australia.
Summary
- Rents will continue to fall in Perth, according to the statistics.
- You can buy residential and rental properties in a reasonable range right now with less competition on the market.
- Perth is facing a rental crisis which determines the fall in the charges of rental properties.
Conclusion
Rent prices have fallen in Perth, but they’re still at an average of $260 per week. It is a more expensive city than Melbourne and Sydney, where the standard is around $200 per week.
It’s also worth noting that rents have softened considerably over the last few years due to a combination of factors. The factors include population growth and new development projects coming online. There are signs that demand for housing stock remains strong throughout Western Australia’s capital city region. We hope this article has helped answer your question, will rents continue to fall in Perth?
