Perth Property Market Rental Trends July 2024
To smoothly manage a rental property in Perth, the best route to take is to understand the dynamics of the Perth property rental market. That way, you will make informed decisions for your rental business and maximise your return on investment (ROI).
In our monthly Perth property market rental review for July and early August 2024, we will provide you with the key insights and trends that define the market to equip you to make the right decisions that suit your property.
Number of Perth Property Market Listings and Rentals
The Perth property market witnessed strong demand for rental properties, as 480 houses and 227 units were rented out in the week ending on the 28th of July. During the same week, the supply of houses and units was 1,777 and 730, respectively, showcasing a good balance between supply and demand.
Median Prices in the Perth Rental Market
By keeping pace with developments relating to the median prices in the Perth property rental market, you can review and adjust your prices based on market trends. As such, let us look at the data for the 12 months ending in July.
On average, you can rent out a 2-bedroom house for $550 per week, a 3-bedroom house for $620 per week, or a 4-bedroom house for $700 per week.
Moving on to rental units, the median price for 1-bedroom units is $520 per week, $600 per week for 2-bedroom units, and $695 per week for 3-bedroom units.
The top suburbs for the number of new rentals were: North of the river, Perth (20), East Perth (18), and Maylands (15) and South of the river, Baldivis (18), Canning Vale (13), and Byford (13).
Perth Rental Prices and Median Days
Rental prices and median days have shown notable fluctuations in a year-on-year comparison. In early August, the median weekly rental price sits at $650 per week for houses and $600 per week for units. However, in August 2023, the median house price was $580 per week, and the median unit price was $520 per week.
The question is: how much did the increase in rental prices affect the demand for rental properties? To answer this, we look at the median days to rent. Properties take an average of 19 days to rent in August 2024, whereas they took an average of 16 days in August 2023 and 15 days in February 2023.
After remaining consistent for months and months, properties are taking longer to rent, which is an indicator of the gradual change in the property market and the increasing balance between supply and demand.
With the increase in prices (which is approximately 12% to 15%), the property rental market in Perth has seen more median days. The increase in supply in the Perth market also plays a part in this trend.
Conclusion
To recap, the Perth property market has once again persevered and shown a gradual increase in house and unit prices. The number of median days to rent is higher than usual, which reflects the change in the supply and demand ratios.
This presents an opportunity for Perth property owners and landlords to adjust their pricing based on market dynamics. Contact HERE Property now for a FREE property appraisal!
