The global COVID-19 pandemic fundamentally changed Perth’s property market. When COVID hit, most property commentators predicted property values would fall by about 20 percent – they were about 40 percent wrong. Property prices in Perth have risen by 75 percent since March 2020. Rent’s have gone up by the same margin rising from $370 per week in March 2020 to $650 per week today.
Uncertainty in the COVID-19 economy and fears over job security inspired would-be sellers to delay their selling plans. The lack of meaningful property investment in Perth during the ‘lost decade’ of 2010 to 2020 when property values barely moved has left us desperately short of housing supply. Construction costs, building company collapses and labour shortages exacerbate the problem. Whilst rent increases have stabilised in recent months, underlying demand remains strong with queues at inspections commonplace.
Given you can’t build new homes overnight, especially with trade and labour shortages, this trend of short supply will continue for a while and will worsen if WA’s immigration intake remains at current high levels. Perth’s vacancy rates remain low sitting at about 1 percent a slight improvement from record lows of 0.6 percent earlier this year. 1,941 rental properties were listed in Perth this week, with 1,739 listed this time last year.
Tenants are understandably stressed.
In this market, when applying for a rental property, tenants should try and have all references, identification, proof of income and other necessary information completed and ready to have a chance of securing a property. Tenants are well advised to apply within 24 hours of viewing a property too and should try and match their move-in date with the advertised lease-start date. Owners are mostly looking for longer term leases too so, if you can, try and lock-in at least a twelve-month lease.
A covering letter with your application that briefly explains your situation and why the property is ideal for you can also put your application to the top of the pile. Having a pet reference is also a good idea. Most homes are renting for above the asking price nowadays, even with a ban on rent bidding, so if tenants are looking for properties that are advertised at their maximum budget, then it may be necessary to reduce that budget and leave some in reserve for negotiation.
Finally, property managers act for their owners. Tenants that behave in a manner that openly displays their frustration are less likely to secure a rental than those who adopt a more conciliatory approach.
In this rapidly rising local market, buying vacant land and building might be a smarter bet than buying an established home. Vacant residential land values across Perth increased about 34% last year, pushing the median lot price to $329,000. The old real estate saying of “land appreciates, houses depreciate” is … Read more
When the time comes to sell or lease your property, property owners often look to the internet to help shortlist agents that might meet their needs. Well established methods of choosing your agent such as re-employing an agent previously used, recommendations from friends and relatives or visiting Home Opens to … Read more