Getting your foot into the door of a prospective rental property is becoming increasingly competitive across Perth. A positive sign that the city’s rental market is bouncing back, some tenants are offering to pay above the listing price to beat out the more than 15 people on average vying for rental properties across Western Australia.
Last week the Real Estate Institute of Western Australia (REIWA) released data showing that there has been a 26% increase in leasing activity in January, with 1,113 properties rented – not just viewed – across Perth last week alone. At the same time, the Perth vacancy rate continued to fall to 2.2%. This time last year there were more than 1,000 more properties on the market, which indicates how much stock has been absorbed.
Rental Management Australia (RMA) CEO, Andrew Graham, said his Leasing Executives were reporting upwards of 15 people on average through RMA properties across the four Western Australian offices, whereas in recent years that number was “closer to two or three”.
“On the ground, we’re seeing really significant interest among tenants, which supports what the data says about the market’s recovery,” he said.
“January and February are traditionally busy periods in terms of leasing activity, but 2020 has been far busier than years gone by. Last weekend alone we had over 100 people through our home opens across Perth, and we’ve heard of some people offering in certain areas $50 above the listed price in order to secure their preferred home. There’s no doubt that the market is showing signs of balancing out and for tenants that obviously means increased competition.”
“For landlords who’ve seen returns fall in recent years, it’s certainly welcome news.”