After spending years in the doldrums, whereby rental prices fell by 22% peak-to-trough:
SQM Research claims that Perth rents are “in a strong recovery phase”:
After an extended housing downturn, it appears that Perth’s rental market is in a strong recovery phase. While rental vacancy rates are elevated at 2.9% the trend has been down since the start of 2017 where they peaked at 5.5% on our numbers. The lowest rental vacancy rate recorded on our numbers for Perth was just 0.5% in March 2012, which was at the peak of the Western Australian mining boom.
As a result of the tightening rental vacancy rate, asking rents have been rising again. Perth asking rents bottomed out at $410 a week for a house and $310 a week for a unit. That occurred in October 2017. Asking rents for houses has since risen and now stands at $440 a week for a house and $337 a week for a unit.
At the peak they were $628 for a house and $476 for a unit (Feb-Mar 2013), so there is still quite a way to go yet before Perth rents hit new highs. And given the peak, it does go to show how much of a rout the market was in.
“Strong” does not seem to be the quite the right word.