There is fantastic news for renters and not so fantastic news for landlords, as rental prices in Perth continue to show signs of cooling. A significant increase in the supply of units/apartments across the city has softened the market, with some areas even seeing the supply of houses increase dramatically since this time last year.
The fact that lease volumes are increasing so significantly indicates that there is a high level of demand to meet that supply, yet the market remains in favour of renters for the time being. So, where are the most popular suburbs in Perth for renters?
10. Victoria Park
There is little surprise in the fact that the central suburb of Victoria Park is on this list. Abutting the Swan River, Victoria Park is one of Perth’s oldest suburbs, but has seen significant development and an increase in supply of higher density living.
The lease volume for units in April this year was 12.1 per cent higher than the same time lasty year, reaching 688. The median rent of units decreased -7.1 per cent, from $325 to $300, due to this increase in supply attracting more renters.
Unlike other popular areas for those seeking apartments and units, there was also a 17.6 per cent increase in the lease volume of houses in Victoria Park, with the median lease price decreasing -4.8 per cent from $415 to $395.
9. Mount Lawley
The trendy inner suburb of Mount Lawley sits on the northern banks of the Swan River, and is famous for its eateries and bars. The median age of those living in the area is 36 years, meaning a high number of professionals seeking easy access to entertainment and great amenities.
In April there was a 14.8 per cent increase in the lease volume of units in the area, from 433 to 497, and a -6.3 per cent decrease in the median lease price of units, down to $300. Lease volumes of houses remained stable, increasing 1 per cent to 194, and a minor median lease decrease of -1 per cent to $495.
The sizeable suburb of Como is a leafy area favoured by families and professionals seeking a quiet escape from the city, without sacrificing on great amenities and easy access to the centre of Perth. As such, lease volumes for units in Como increased in April this year by 15.3 per cent compared to the same time last year, reaching 732 units leased. The median rent of units fell -5.7 per cent to $330.
7. West Perth
Due to its central location, West Perth is one of the few areas in this sprawling city where residents can get around easily on foot, with great amenities and parks such as the Harold Boas Gardens as well as Kings Park and Botanic Gardens attracting a high number of tourists. As such, it is a favourite for young professionals, with lease volumes for units increasing this April by 25.6 per cent compared to April 2017, reaching 859 units leased. This increase of supply resulted in a median rent decrease of -7.0 per cent to fall to $400.
6. South Perth
Known for its incredible views, South Perth is a quieter suburb favoured by professionals and older demographics, but its central location continues to drive demand for rental options.
In April this year, there were 892 units leased in South Perth, up by 16.6 per cent from April 2017, with the median rent decreasing -8.1 per cent from $370 to $340. Houses in the central suburb are understandably less available, and supply decreased from the same time last year, from 196 leased to 187. This helped drive median rents 5.3 percent to $500.
The central suburb of Maylands is favoured by young professionals and families for its proximity to the airport as well as the city and an easy drive out to the Swan Valley wine region. Rental prices also remain comparatively affordable, maintaining a healthy level of demand.
The lease volume of units in Maylands increased 22.6 per cent to 918 from this time last year, with the median rent decreasing significantly by -11.9 per cent to $260.
April lease volumes of units in Scarborough increased from the same time last year by 38.6 per cent to 1038, with the median rent decreasing -9.1 per cent to $350, explaining much of this increase in rental interest. Scarborough is best known for its incredible beach, with glass-clear waters and white sands, as well as a welcoming family atmosphere.
There is a reason Baldivis is third on this list. It is exploding with activity and development, and is right next to the calm waters of Safety Bay. A surge in development in both housing and amenities means that demographics are continuing to favour younger families and professionals, but there is still a wide range of demographics enjoying the area. Lease volume of houses in Baldivis increased 18.5 per cent to 1179 in April compared to the same time last year, with median rents for houses decreasing -3.4 per cent from $352 to $340.
2. East Perth
East Perth continues to be a destination for those seeking great cafes, bars and restaurants and to feel immersed in the city life, while enjoying easy access to beautiful parkland and the Swan River esplanade. The supply of units in East Perth has exploded in the past year, with the lease volume of units at 1596 in April, up 25.6 per cent from April 2017, with the median rent decreasing -2.3 per cent to $420.
There is little surprise that the centre of Perth continues to attract demand by renters. Professionals seeking access to all the great things central Perth has to offer continue to flock to the increasing number of units and apartments being constructed. But few would have predicted just how much activity there would be in the past year for rentals within the inner city.
The lease volume of units for Perth in April this year was 1521, up an incredible 32.4 per cent from April last year. The median rent for units decreased -4.8 per cent to $400, maintaining the area’s relative affordability compared to the major markets on the eastern seaboard.
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