According to a recent article released by REIWA, Perth rental market continues to show recovery with vacancy rates dropping to 2.8 per cent in the December 2019 quarter.
With the peak vacancy rate being just 18 months ago in June 2017 at 7.3 per cent, it’s a welcomed change to investors in Perth and a positive outlook for the year ahead.
Although we have seen a drop in vacancy, Perth’s median house price is still holding at $350.00 per week.
Damien Collins quoted in the recent article;
“When we drill down further and isolate houses and units, the results of the December quarter are very pleasing for landlords, with both houses and units experiencing increases in rents. The median house rent increased $10 per week to $360 during the December quarter, while the median unit rent increased $5 per week to $325.
“This improvement didn’t translate into an increase in the overall median as there were more units leased during the December quarter than houses, which has kept the overall median stable.”
“If the rental market continues on its current trajectory, we should see Perth’s overall median rent price increase in 2020, which will be a welcome development for landlords” Mr Collins said.
What does this mean for you as a landlord?
The stability of our median rental values coupled with the decrease of rental properties available on the market, should see slight increases in rent throughout 2020. We still need to see consistency with vacancy rates throughout the next 3 – 6 months however, it is a very good step in the upward direction.
It’s important as a landlord that you always ensure your marketing strategy is the right one for the type of property you have. Attracting the right tenant within a short time frame can be a huge difference to the rental return on your investment throughout the year.
With Empire Property continuing to hold a vacancy rate at 1.9%, well below the state’s average, we encourage landlords’ to always ask for an update on where their property sits in todays’ market and asking what the best method of marketing would be for their type of property.
It is also important to ensure you are continuing to put your best foot forward. Continuing to add value and improve your investment property will always help with the ability to achieve higher rents and attract quality, long term tenants that will result in higher returns.
If you have an investment property and want to chat about where your property sits in the market or even if you haven’t been 100% happy with the service you have been receiving, please give our team a call on 9335 7555.