Rental Income Patterns - WA & Perth Rental Trends
Median rents in regional areas of Western Australia have been reasonably stable during the March 2010 quarter, however there have been some exceptions.
Regional rent figures released today by the Real Estate Institute of WA (REIWA.com.au), show the median rentals in the Pilbara region are still more than triple the price of metropolitan Perth.
Median rents in The mining areas of Port Hedland and Karratha were $1200 and $1600 per week, as reported by Alan Bourke, REIWA President.
“Karratha saw median rents increase by $200 per week during the first three months of this year, while Port Hedland saw them drop back by around $250 per week” Mr Bourke said.
Busselton was the only other region to show a sharp increase in median rents, with typical prices rising by around $20 from $280 to $300 per week during the quarter.
Most other regional centres saw a steady rental market, with places like Geraldton-Greenough, Kalgoorlie-Boulder and Greater Bunbury recording no change.
“Although the Geraldton region saw no fluctuation in its median rent, the vacancy rate of available properties did increase from 4.2 per to 5.2 per cent, a trend that may see some downwards pressure on median rents if it continues”.
“By contrast, the vacancy rate in Kalgoorlie-Boulder tightened from 5.8 to 4.6 in the March Quarter. .
If this trend is maintained, this could influence rents to increase in the medium term.
Although Bunbury showed no overall change, there was a big rise in median rentals for units, which jumped from $265 per week to $290 per week, during the March quarter.
Closer to Perth in the Peel region, Mandurah-Murray saw its median rent increase by $5 to $290 per week, while the vacancy rate dropped by 0.2 per cent to 2.3 per cent. A rate Mr Bourke described as “quite low” .
The vacancy rate in the Mandurah region has tightened considerably from the 3.7 per cent it was showing in the September quarter last year. This may be due in part, that the more affordable rents in Mandurah are attracting some Perth residents, happy to move to the seaside, and are then able to commute to Perth by train for work,” Mr Bourke said.
In Albany, the vacancy rate has grown from 3.8 per cent at the end of last year to 4.2 per cent in the March quarter. Median rents reduced by between $10 - $280 per week.
Mr Bourke said the rental system in the regions was more sensitive to employment conditions and seasonal work opportunities.
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