Economy

Perth rent at nine-year low

Perth is now the cheapest Australian city to rent a house after median prices fell again, according to Domain’s quarterly report released on Thursday.

The report said in the past quarter, median house rental prices in Perth had fallen 2.8 per cent from $360 to $350.

This continues the trend that has seen Perth rental prices fall 29 per cent since June 2013.

Domain’s chief economist Andrew Wilson said Perth was now cheaper than Hobart.

“As the market continues to weaken, house rents in Perth are now the most affordable of all capital cities,” Dr Wilson said.

“The median is now at a nine-year low. The last time we had a median rent of $350 per week was in September 2008.”

Dr Wilson said Perth’s rental market was showing positive signs but he could not see the downward trend changing in the short-term.

“There’s still very strong competition between property owners trying to get tenants into their houses,” he said.

“Vacancy rates are heading in the right direction but they’ve still got a way to go.”

Hobart’s median rent price increased from $360 to $375 over the last quarter.

Sydney was the most expensive, with the median cost of a house $550 a week in the Harbour City.

LJ Hooker Claremont business development manager Lee Fisher said lower rent meant property owners had to weigh-up their options.

“We always ask landlords to factor in vacancy time, how much money they’d be losing if the property was vacant and then just giving them comparable properties that may be worth what the tenant’s asking to pay,” Ms Fisher said.

“Mostly we’re seeing the same sorts of people through properties but now they’re getting more value for their money.”

Acton chief executive Travis Coleman said the Perth market was recovering.

“Buyers now understand that Perth property prices are at rock bottom and the only way is up,” he said.

“This is why they are making a decision to buy in greater numbers.

“This recovery in the Perth property market is underlined by the fact that there are now 1000 fewer properties listed for sale (13,153) compared to this time last year (14,164).”

Categories: Economy, Property

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