Across the regional and metro markets nationally, rentals rose 4.1% in the first quarter of the year while rents in the combined capitals increased 2.9%.
Although rents are generally rising, housing values have been rising at a faster rate which has seen rental yields decline across most of the capital cities. The exceptions are Perth and Darwin where rents have risen at a faster rate than housing values. On the flip side, Sydney and Melbourne’s rental yields are plumbing new record lows.
The pace at which these rents are rising is also setting a new record pace, the fastest in fact since 2007.
Perth and Darwin are seeing annual rental rises in double digits and accelerating, whilst at the opposite end, Melbourne and Sydney are down over the year due to the falling units sectors. This is majority attributed to the closed international borders, which are largely dependent on demand from international students and visitors.
Speaking with Realmark North Coastal Licensee and Auctioneer, Jeanette Bates, she stated,
“The Perth market is on a high, we have seen surges in enquiries across the board from properties for sale and lease. Many have sold sooner than expected and are seeking rental accommodation whilst they wait to make their next move on the property market. We have seen the headlines across Perth with properties selling after the first home open, but the rental market is just as hot, the majority of our rental properties are least within a day of being viewed if not before. At Realmark North Coastal, with our auctions and set date sales we are finding that we are able to optimise sale prices, we keep the property in the market for a longer period of time which gives every buyer in the market place and opportunity to view, think and place offers. Owners under this process are less pressured to sell in the first week and it allows them time to consider all offers available.
We have gone from properties sitting vacant for weeks to being snapped up instantly, our Property Management team have done a superb job in ensuring owners and tenants are aware of the market, inspections and staying on top of maintenance to illuminate any exorbitant costs and inconveniences to the owner and tenants.
REIWA figures released last month stated that the Perth vacancy rate is now sitting below 1% - the lowest level in over 40 years.”
Jeanette added, “with the end of the emergency Residential Tenancies (COVID-19 Response) Act 2020 having now ended, hopefully, this will give investors greater incentives to invest in the market, investors are so important to ensuring we have a healthy, sustainable not to mention affordable and balanced rental market for tenants.”