During the 2018 December quarter Perth house rents have shown the strongest growth in the nation, signalling a market turnaround.
All signs point to a turnaround in Perth’s rental market. Demand for rental accommodation will be supported by an improving jobs market and local economy, giving residents greater incentive to stay and new residents reason to relocate west.
Investors will find Perth a more attractive option as they seek better yields and growth prospects, particularly given falling property prices in the east coast.
Tenants should expect increased competition for rental properties as the resources sector continued to ramp up, which has been reflected in moderate increases in asking rents during the past year.
Strong tenant activity was encouraging for the year ahead with landlords and tenants optimistic about the economy.
The new year has seen the rental market sky rocket with very strong tenant inquiry.
Evidence shows families are relocating from the US and UK, as well as West Australian’s returning from the east coast. Demand is also coming from the high number of applicants of people who have recently sold their homes and want to rent while they find their next home.
WA’s mining sector is driving employment growth with the sector employing 111,800 workers in the November quarter, up from 87,800 in the comparative period in 2017.
Perth is now more likely to lure interstate and overseas investors. As they have traditionally been attracted to Sydney and the strong capital gain.
As Sydney and Melbourne’s capital gain is now deteriorating in the short to medium term, investors have already started to look at other areas to invest in the property market, Perth being an area that may come into their culling list.
Taken from the report https://www.domain.com.au/news/perth-house-rents-are-rising-faster-than-sydney-and-melbourne-now-793813/