Perth Rental Market

Hi All
Anyone have any ideas in general how the rental market is going in your area, or where you are investing etc.

I know that some markets have dropped off due to oversupply, is this now changing/stabilising.

I am looking at building in Kardinya 4x2 this would fly out the door at $600 pw 6-12 months ago, apparently now only $550, shame, there is plenty of choice.

Villas in Spearwood 3x2 will still rent at $500 pw, similar to what I was looking at 12 months ago, perhaps because there is not a lot of this stock in Spearwood.

MTR:)
 
I get a nice cross section of daily rental data through my work.

Muted in most areas, although I wouldn't say its "bad" in most. Some regional areas are truly suffering however.

Notably where I sometimes operate, Fremantle and central Rockingham still have decent rental demand from what I can see.

Agreed that around Murdoch university still remains firm, but this can be seasonal too.
 
Thanks for that info, that is not so bad.

Regional suffering - Bunbury, Mandurah?? Mining towns etc.
 
Inner city is bad..if you are looking for a tenant there good luck without a large decrease.

Agreed on Rockingham. My Shoalwater unit I increased by 50.

It seems high priced rent is struggling and the lower end is holding up.
 
It appears to be dependent on suburb and popularity. Bassendean appears to be holding up with rents stable. Ashfield next door which would be most peoples second choice in a tight market appears to have dropped off a bit.
 
MTR
Early last year I had three rental appraisals done on yokine. They ranged between $850-$950/week. So really - all in a similar ball park.

Wind forward 18months and this had dropped to $700/week.

I put them up at $650/week and they ran out the door. 1 viewing and multiple offers. Secured two very good tenants at $650 and $670 (which included an upfront payment of 3months rent).
The one at $650 originally wanted to move in on the 11th Sept. We negotiated to bring it forward to the 28th August. Therefore an effecive $25/week increase in income for the 12month lease.
I purposely advertised 'below market' as I was willing to forgo $50/week in order to get people in qucikly.

To be fair - I think last year at $850-$950/week was rediculous and crazy. But people were paying it for some reason.

Blacky
 
Clever blacky!
I will have one up for rent in early oct and will be doing the same..
To be fair as landlords we have had it good for a long time with rent increases.
This is just a small bump.
 
As long as the outgoings are AT least neutral,you'd be a fool to raise to top market rent when a good tenant looks after your IP and sanf for the LL.
 
Rental estimate on Gwelup was $600-650 during better times - ie 18-24mths ago.

I got $630, $615 and $600 in the end. $600 applied and moved in that week so I didn't mind that :)

I also rented out 4 x 1.5 old house in North Perth this week - inspection Monday, moved yesterday for $500.

It has slowed so assessment of rent asking price is needed.
 
It seems high priced rent is struggling and the lower end is holding up.

I'd agree with that. Our Coodanup (Mandurah) property is holding up and would have a rental increase if we weren't doing a build in the back yard, but our South Perth 2x1.5 townhouse just had the tenant leave and we had to drop by $50 to $645pw to secure a new one. Still, it only took two weeks all up to find a new one and there's no gap between the tenants so I'm pretty happy with that.
 
Thanks for that info, that is not so bad.

Regional suffering - Bunbury, Mandurah?? Mining towns etc.

Bunbury is going quite strong actually - I think the back end of a recent rental boom. I think its similar for a lot of the south west.

Geraldton has died in the *** - massive vacancies and rental drops. Likewise for Kalgoorlie/Kambalda. This has bled into the prices too I think.
 
TB
Fortunately no properties in these regional areas.

Chatting to a property manager yesterday Spearwood area, she mentioned how difficult it was to rent out 1 bedders, I thought this would be ideal and they would fly out the door, not in this area.
 
It is pretty scattered.

My housemate listed his 3x1 in Greenwood at $480. Had multiple families there on the day, rented at $500 and they are taking care of the pool and lawn out of their own pocket despite him offering to do it on his swing back from the mines each fortnight.

On the other hand, my sister just moved to Perth with her husband and baby. She was physically laughing that for $500 they have a large 3x1 villa in Wembley Downs. They previously paid $850 a week for their 2x1 in Bronte. I have been to the villa. Fully renovated in a complex of 4. New kitchen, large (350m2 ish) space. Great renting.
 
Such a mixed bag in Perth.

Would not want to be renting in Syd, I rent out a converted garage at rear of the house, with outdoor BBQ as kitchen for $220 pw, this is West Syd, not blue chip, never have an issue renting:eek:

On the flip side in Melb blue chip areas for example Prahran etc - due to over supply apartments will rent much cheaper than Perth inner city.

There has been lots of talk on SS from the Melb locals who say don't touch apartments due to this factor/oversupply.
 
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