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Perth tenants on top as WA rental vacancy rate hits 20-year high

Discussion in 'Property Market Economics' started by MGF, 16th Sep, 2015.

  1. MGF

    MGF Well-Known Member

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    Full article: http://www.perthnow.com.au/realesta...its-20-year-high/story-fnhlgriw-1227524083658

    PERTH’S vacancy rate for rental properties has hit a 20-year high as landlords report a spate of tenants breaking leases.

    The median weekly rent for Perth is $420 for houses and $395 for units, down 13 per cent from 18 months ago and the lowest figure since 2011.

    Landlords who once had up to 40 tenants fighting for the one property are now reporting a rise in tenants breaking leases as they nab themselves bargain properties elsewhere in Perth.

    [​IMG]
    At the height of the mining boom, families in Perth resorted to living in camping grounds because they couldn’t find rental properties.

    Now, as population growth slows and the economic downturn continues, property managers say it is difficult to get prospective tenants to even turn up to viewings.

    Wealthy suburbs are offering the best bargains, with Claremont’s median rent for houses falling 30 per cent in the past 12 months — a drop of $332 a week. Peppermint Grove had the second-biggest decrease with weekly rent falling $475 or 24 per cent.

    For units, North Coogee was the hardest hit after a number of new-build apartments became available, with median rent falling 50 per cent in the past year, or $425. Cloverdale, 10km east of the CBD, had the second-biggest decrease with a drop of 15 per cent, or $80.

    TOP 10 SUBURBS FOR RENTAL DISCOUNTS (HOUSES)

    1. Claremont: From $1100 to $768. Down 30 per cent or $332.

    2. Peppermint Grove: From $2000 to $1525. Down 24 per cent or $475.

    3. Burswood: From $800 to $613. Down 23 per cent or $187.

    4. Waterford: From $750 to $595. Down -21 per cent or $155.

    5. Churchlands: From $1100 to $900. Down 18 per cent or $200.

    6. City Beach: From $1145 to $950. Down 17 per cent or $245.

    7. Burns Beach: From $800 to $665. Down 17 per cent or $135.

    8. Ascot: From $600 to $500. Down 17 per cent or $100.

    9. Menora: From $700 to $585. Down 16 per cent or $115.

    10. Shoalwater: From $430 to $360. Down 16 per cent or $70.

    TOP TEN SUBURBS FOR RENTAL DISCOUNTS (UNITS):

    1. North Coogee: From $850 to $425. Down 50 per cent or $425.

    2. Cloverdale: From $530 to $450. Down 15 per cent or $80.

    3. Mount Hawthorn: From $550 to $445. Down 14 per cent or $75.

    4. Connolly: From $517 to $445. Down 14 per cent or $72.

    5. Crawley: From $490 to $420. Down 14 per cent or $70.

    6. Sorrento: From $565 to $500. Down 13 per cent or $65.

    7. Highgate: From $480 to $420. Down 13 per cent or $60.

    8. North Fremantle: From $725 to $640. Down 12 per cent or $65.

    9. Doubleview: From $450 to $400. Down 11 per cent or $50.

    10. Perth: From $590 to $525. Down 11 per cent or $65.

    Full article: http://www.perthnow.com.au/realesta...its-20-year-high/story-fnhlgriw-1227524083658
     
  2. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    @Blacky : makes me glad we didn't pick that North Coogee site now. It wouldn't be stacking up well for banks or investors to buy OTP.
     
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  3. 2FAST4U

    2FAST4U Well-Known Member

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    I’m completely unaware of Perth and the regions etc. But are most of those suburbs blue chips?
     
  4. D.T.

    D.T. Adelaide Property Manager Business Member

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    Yea most of those are, so seeing the absolute value change is unsurprising. My Perth property is in a lower end suburb recently dropped from 430 to 400 and still only got 1 decent application in about 4 weeks.
     
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  5. Rumplestiltskin

    Rumplestiltskin Well-Known Member

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    I would say half of them are blue chip.

    Burswood, Waterford, Burns Beach, Ascot, Shoalwater, North Coogee, Cloverdale, Connolly, Highgate, Doubleview not so.
    WA economy is in trouble, Iron Ore is commencing another downleg and it doesn't take a genius to realise that it's going to be a sustained downturn in the West.
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

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    How long have you lived in Perth?
     
  7. Rumplestiltskin

    Rumplestiltskin Well-Known Member

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  8. Rumplestiltskin

    Rumplestiltskin Well-Known Member

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    In fact of the suburbs listed across the board, only 3 would make the top 10 most expensive for houses.
    Crawley is a bit of an orphan in the western suburbs, because it is predominantly apartment living.
     
  9. Blacky

    Blacky Well-Known Member

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    Agreed - once I had seen the site I didnt like it. Again - nothing like 'feet on the ground' to get a feel for the development.

    Probabl 'bout time we gave an update on Blackminster. Maybe once contract is signed and finance sorted.

    Blacky
     
  10. Perthguy

    Perthguy Well-Known Member

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    I had to drop the rent on my Cloverdale property from $440 to $340 earlier this year to get a tenant. Now I'm glad I did! There are still listings on re.com.au from May :eek:
     
  11. Kangaroo

    Kangaroo Well-Known Member

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    Eventaully rents will come back.
    How long do you think it will be like this before the rents start to go up again ?
     
  12. Rumplestiltskin

    Rumplestiltskin Well-Known Member

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    Half of the next decade, maybe longer.
     
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  13. Waterboy

    Waterboy Well-Known Member

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    So if I took a short term job in Perth and wanted to rent short term in an apartment close to the city, how much rent will it cost me? $200pw?
     
  14. Aaron Sice

    Aaron Sice Well-Known Member

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    try $200 a night.
    no one renting for less than 12m generally, at the minute.
    maybe look to airBnB
     
  15. Perthguy

    Perthguy Well-Known Member

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    Things aren't that dire yet! ;)

    Even Maylands, North Perth, Burswood and Vic Park (all around the CBD) start at $240 pw for a 12 month lease. That's unfurnished too. You can get 6 months furnished in Vic Park for $270 pw. If you want CBD though, you are looking at $280 pw furnished for a 12 month lease.
     
  16. Perthguy

    Perthguy Well-Known Member

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    Not before summer. We will know by March next year but maybe 12 months.