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It’s no secret that the Western Australian property market is experiencing a rental scarcity – right here are 10 Perth suburbs the place the dearth of provide of rental housing is creating optimum circumstances for property traders.
It’s no secret that the Western Australian property market is experiencing a rental scarcity. There are low ranges of inventory and excessive ranges of demand ensuing in a emptiness charge that is still close to file lows. WA wants a rise in investor exercise to assist sustain with the rising demand from tenants.
There are at present lower than 2,500 properties for lease in Perth making it an excellent time for traders to leap into the WA market and take benefit of the beneficial funding circumstances.
Competition amongst tenants is excessive, lease costs are rising and yields are wholesome, so when you have been fascinated with shopping for an funding property in WA, now could be an opportune time to behave.
But which Perth suburbs are most in need of rental properties?
REIWA performed an evaluation of the Greater Perth area to search out out which suburbs have been most in need of traders.
The evaluation aimed to find out the place the tightest relationships have been between provide and demand based mostly on how lengthy a suburb’s annual leasing charges would take to soak up all of the rental inventory obtainable in the world on the finish of August 2021*.
Based on this evaluation, REIWA has narrowed down the ten Perth suburbs the place the rental scarcity is most acute and the place traders are subsequently most wanted.
Forrestfield is the Perth suburb most in need of investor exercise, with REIWA evaluation revealing it has simply 4 days of rental inventory obtainable on the finish of August.
Forrestfield is positioned 18 kilometres south-east of the Perth CBD. It has a median lease worth of $400 per week and a wholesome rental yield of 4.8 per cent.
The median sale worth for dwellings (homes and models) grew 15.1 per cent to $430,000 in Forrestfield throughout the yr to August 2021.
Wellard was the second most in-demand Perth suburb, with REIWA evaluation discovering that it had six days left of inventory on the finish of August.
Located 40 kilometres south of Perth’s CBD, Wellard has a median lease worth of $415 per week and a robust rental yield of 5.2 per cent. Its median dwelling sale worth grew 13.5 per cent to $415,000 in the yr to August 2021.
Kinross was the third most in-demand suburb on the record for leases, with simply seven days of rental inventory obtainable on the finish of August 2021.
Kinross is positioned 30 kilometres north of the Perth CBD.
It has a median lease worth of $500 per week and a rental yield of 5 per cent. Its median dwelling sale worth grew 9.6 per cent to $520,000 in the yr to August 2021.
In fourth place was Bibra Lake, with seven days of rental inventory obtainable on the finish of August.
Located 22 kilometres south of the Perth CBD, Bibra Lake has a median lease worth of $460 per week and a rental yield of 5 per cent.
Its median dwelling sale worth grew 5.1 per cent to $482,000 in the yr to August 2021.
Rounding out the highest 5 was North Beach, additionally with seven days of rental inventory left on the finish of August.
North Beach is a northern-coastal suburb positioned 16 kilometres from Perth’s CBD. It has a median lease worth of $613 per week and a rental yield of 3.4 per cent.
North Beach’s median dwelling sale worth grew 12.8 per cent to $946,000 in the yr to August 2021, which is the best median on the record.
Two Rocks is subsequent on the record, with eight days’ value of rental inventory left on the finish of August. Two Rocks is positioned 63 kilometres north of the Perth CBD.
It has a median lease worth of $415 per week and a rental yield of 5.4 per cent. Its median dwelling sale worth grew 10.8 per cent to $400,000 in the yr to August 2021.
Beechboro is seventh on the record, having eight days of rental inventory left on the finish of August. Beechboro is positioned 14 kilometres north-east of the Perth CBD.
It has a median lease worth of $380 per week and a rental yield of 5.1 per cent. Its median dwelling sale worth grew 11.7 per cent to $385,000 in the yr to August 2021.
Beeliar additionally had eight days of rental inventory left on the finish of August, based on REIWA’s evaluation. Beeliar is positioned 27 kilometres south of the Perth CBD.
It has a median lease worth of $450 per week and a rental yield of 4.5 per cent. Its median dwelling sale worth grew 4.9 per cent to $515,000 in the yr to August 2021.
Illuka comes in at 9 on the record, with eight days of rental inventory left on the finish of August. Illuka is positioned 31 kilometres north of the Perth CBD.
It has a median lease worth of $850 per week – the best on the record, and a rental yield of 5.3 per cent. Its median dwelling sale worth grew 1.2 per cent to $840,000 throughout the yr to August 2021.
Lakelands completes the record and is the fourth suburb in a row to have had simply eight days of rental inventory obtainable on the finish of August. Lakelands is positioned 64 kilometres south of the Perth CBD close to Mandurah.
Its median lease worth is $420 per week and it has a rental yield of 5.6 per cent – the best on the record. Lakeland’s median dwelling sale worth grew 7.2 per cent to $388,000 throughout the yr to August 2021.
To put the above figures into perspective, when the identical evaluation was utilized to the Greater Perth area, it discovered that Perth had 23 days of rental inventory left on the finish of August if annual leasing charges continued at their present tempo.
This determine (whereas nonetheless low) is considerably greater than the ten suburbs that made this record and demonstrates how robust the demand is for rental properties in the suburbs listed above.
Ultimately, there are many elements to think about when shopping for an funding property. You are coping with two markets (gross sales and rental) concurrently which may be tough to navigate with out professional help.
If you are contemplating investing in WA, I’d extremely suggest participating a REIWA purchaser’s agent to work with you.
Their information and experience of the WA gross sales and rental markets, plus their suburb degree understanding will provide you with a aggressive benefit when investing in property in WA.
*REIWA’s evaluation didn’t issue in new itemizing inventory coming to market after 31 August 2021.
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