Investment opportunities highlighted in Perth
Real estate prospects heat up in the urban centre of WA, with the recent release of rental figures from the Real Estate Institute of Western Australia (REIWA).
With employment opportunities and resource potential, Australia’s largest state has been attracting new residents in search of investment opportunities and prosperity.
With this growth comes the potential for real estate investment opportunities – a need for accommodation is quickly rising.
“As the number of rental properties diminish rents are being pushed up. It’s a classic case of supply and demand being driven by population growth and weak investor activity,” REIWA president David Airey said on August 15.
The rental vacancy rate sits at 1.9 per cent, marking an unusually low point for the winter months. With a market equilibrium of three per cent, the advantage is clearly with property owners.
With spring just around the corner, it does not look like the demand will be abated any time soon.
“I can’t see this rental situation changing in the short term, particularly given that the market tends to pick up in spring. The bottom line is that our population growth is higher than the rest of the country and everyone needs somewhere to live,” said Mr. Airey.
Rental rates rose again in the three months to July, bringing the median to $440 per week.
Representing a $420 median for apartments and a $450 median for houses, the rates illustrate investment potential.
Limited housing stock and population growth are the main attributers to the state of the current market.
“We may also see investors return to the Perth market in greater numbers now that the rental yield has improved, house prices have stabilised, interest rates are steady and demand for accommodation is likely to continue for some time,” Mr Airey said.
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