Perth Rents

[FormerLurker]

Looking good - though the jump between the median here and the 2011 census seems mighty sharp:

http://www.news.com.au/national/rent-consumes-nearly-half-weekly-pay/story-fndo4e3y-1226473733709

 

[Aaron Sice]

median rents to tip $500pw this time next year.

THAT'S ouch.....

 

[HotRod]

But, don't you know, there's no boom.

 

[MTR]

Yet I am getting a number of property managers telling me that rents have now stabilised.

MTR

 

[Rixter]

Yet I am getting a number of property managers telling me that rents have now stabilised.

MTR

Compared to?

 

[MTR]

Have no idea Rixter,
I guess in these particular areas perhaps they have stopped rising and stabilised, sooner or later this is bound to happen.
Cheers MTR

 

[Rixter]

I guess in these particular areas perhaps they have stopped rising and stabilised, sooner or later this is bound to happen.

Yeah its all just part of the area's supply & demand cycle. Tho with around 1000 people net per week migration coming into the state I think there is still plenty of legs left to run yet.

 

[MTR]

I really hope so.
Also, a side issue, if interest rate drops further (OCT), how do you think this will this effect the rental market??

Cheers, MTR

 

[Rixter]

I really hope so.
Also, a side issue, if interest rate drops further (OCT), how do you think this will this effect the rental market??

Cheers, MTR

As with all past cycles, as demand for rentals increase so do the yields and investors jump on board. As rents increase and IR decrease it finally reaches a point where consumer sentiment increases and renters work out they could be purchasing their own ppor for the same price or cheaper than paying rent. They decide to jump over and add weight to the demand side of the supply/demand equation. And as you know when demand exceeds supply ratio up goes growth. On the rental market yields stablise.

IMHO its consumer sentiment that lacking in the current market at the moment. As IR's reduce I believe this will bring confidence back and growth in to affordable end of the market.