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  • Leasing activity soars in Perth

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    Leasing activity in Perth has increased significantly on an annual basis, with latest figures for the December quarter 2016 showing activity was up 23.8 per cent compared to the December quarter 2015.

    REIWA President Hayden Groves said reiwa.com data showed all five sub-regions experienced notable increases in activity over that time.

    “While conditions in the rental market remain challenging, the spike in leasing activity levels between December quarter 2015 and December quarter 2016 is a real positive for the market. Tenants are very active and are taking advantage of favourable conditions,” Mr Groves said.

    Leasing activity also lifted on a quarterly basis, with reiwa.com data showing a 1.9 per cent increase in the three months to December 2016.

    “All but two of the sub-regions saw a lift in activity over the quarter, with the South East sub-region the stand out performer.

    “At a suburb level, the big winners for leasing activity in the December quarter were Burswood, up 78.9 per cent, Palmyra, up 70.3 per cent, Melville, up 59.1 per cent, Langford, up 54.5 per cent, and Beechboro, up 53.8 per cent,” Mr Groves said.

    Leasing activity by sub-region

                                   Sub-region Quarterly change Annual change
    Central ↑ 3.7 ↑ 22.3
    North East  ↓ 7.0  ↑ 25.0 
    North West  ↑ 1.8  ↑ 27.6 
    South East  ↑ 6.1  ↑ 25.2 
    South West  ↓ 2.6  ↑ 24.4 
    *For suburbs with more than 20 leased properties in the December quarter 2016.

    Rent prices

    Tenants remain the beneficiary of Perth’s current rental market cycle, with the overall median rent price (houses and units) adjusting back to $360 per week in the December quarter 2016.

    Mr Groves said median rent prices had softened slightly across all sub-regions.

    “In good news for investors though, there were numerous suburbs within each sub-region that bucked this trend to record increases in their weekly median rent prices over the quarter.

    “Ocean Reef and Burswood in particular saw substantial increases to their median rent prices, which can be attributed to a greater proportion of higher priced rentals leasing during the period. In both these suburbs there was stronger demand for three to five bedroom homes, which usually command a higher weekly rent comparative to smaller properties,” Mr Groves said.

    The suburbs with the biggest quarterly increase in median rent price in each of the sub-regions were:*For suburbs with more than 20 leased properties in the December quarter 2016.
          Sub-region Suburbs Median rent per week Difference to September qtr 2016
    Central Burswood $485 ↑ $60
    North East Wattle Grove$450 ↑ $30 
    North West Ocean Reef $575 ↑ $83 
    South East Beckenham $330 ↑ $10 
    South West Golden Bay $348 ↑ $18 
    *For suburbs with more than 20 leased properties in the December quarter 2016.

    “There is still plenty of opportunity for investors in the Perth rental market. In addition to leasing activity rising and interest rates holding at all-time lows, we are also seeing listings for rent not increasing at the rate they once were.

    “If you’re thinking about buying your first rental property, or acquiring another, now is a great time to take advantage of increased levels of tenant activity, more affordable house prices and low interest rates,” Mr Groves said.

    Average days to lease

    On average, it was one day quicker to lease a property in the December quarter 2016 than it was in the September quarter 2016.

    “On an annual basis, the average days to lease a house or unit have come in by almost a week, with reiwa.com data showing it was six days faster to find a tenant in the December quarter 2016 than it was in the December quarter 2015,” Mr Groves said.