Perth Property Management - Rental Market Update - August 2021

Perth Real Estate Sales News & Market Insights  |  17 August 2021

In the wake of a turbulent 2020/21 rental market, it's encouraging to observe some positive shifts which indicate conditions are slowing down a little. While the government moratorium on rent increases and evictions ended in March, it has taken several months to process the backlog of paperwork, mandatory conciliation and court hearings, therefore accurate data has only recently become available.

Prices are still high, with the Xceed leasing team recording an increase of 13% in approx. six months, compared to the industry average increase of 16%.

Xceed's vacancy rate remains low, at 1.5%.

Data indicated that demand has decreased, with between 20-50% of registered tenants showing up to property viewings, compared with 70-80% in attendance previously.

Currently, only 5% of applications are offering above the advertised asking price, where previously, this stood at 100% due to excessive demand. Properties are now advertised at the maximum market rate rather than marketing at an 'offers from' price, creating a more even playing field for prospective tenants.

Interestingly, only 20% of applications have been of an acceptable standard, with the majority missing critical information such as referee details and proof of income, and coming from a lower socio-economic demographic.

We anticipate the trends we're currently observing concerning pricing and vacancy rates will remain consistent over the coming quarter and will provide another market update at that time.

Click here to find out more about leasing your property with Xceed Real Estate or view our available rental properties here.