Perth Property Market Update: April to June Quarter 2023
Although interest rates have continued to climb, the Perth property market has remained strong in the fourth quarter of 2023.
The latest data shows that the market is still thriving, as rental rates and yield in Perth are experiencing steady growth. As a property investor, this should make you optimistic. After all, higher rental rates mean higher rental demand!
In this quarterly report, we offer you a comprehensive rundown of the Perth property market for the fourth quarter of the 2022-2023 financial year, from April to June 2023. We’ll discuss rental rates and yields, rental demand, and median rents in different suburbs.
Rental Rates and Yield in Perth Shows Continual Growth
Although interest rates continue on their upward trend, the data from the CoreLogic Report demonstrates positive growth in the Perth property market in Q4 FY23, Australia.
Over the quarter to June, the median rent for all dwellings in Perth increased by 3.4%, with unit rents having the most growth at 4.6%. The current median rent for all dwellings in Perth sits at $599, and the current gross rental yield is 4.89%.
Over the past 12 months, Perth has taken the lead with the strongest annual increase in rents across all the capital cities, that being 13.4%. Accordingly, it has beaten other capital cities, such as Sydney and Melbourne, whose annual rent increases are 12.9% and 12.6%, respectively.
Moving on to vacancy rates, Perth has witnessed a significant drop in vacancies over the last 12 months from 1.2% to 0.7%. This drop confirms the high demand for rental properties in Perth, which is giving rise to hikes in their prices.
Additionally, Perth’s gross yields have increased over the past 12 months, from 4.38% to 4.89%. This is higher than the current national gross yield of 3.8%.
What this data suggests is that the property market in Perth is witnessing strong growth, with higher rents, improving gross yields, and a lower vacancy rate.
Rising Rental Rates Accompany Increasing Rental Demand
According to the CoreLogic report data, unit rents have spiked in the Perth housing market in Q4 FY23. Perth recorded the highest quarterly increase in unit rents, which is 4.6%! Perth’s rise is followed by Melbourne’s 4.5% and Sydney’s 4.3%.
As for the annual rental rates for the entire year, both houses and units have witnessed significant increases. Over the past 12 months, the increase in Perth houses is 13.1%, while the increase in Perth units is 15.4%.
These figures testify to the growth in Perth’s rental market, which could be linked to the high demand for rental properties caused by a rise in migrations to Perth and new home construction delays
By observing these market changes, we can deduce that the Perth property market is still going strong and would make a good investment opportunity for future property investors. However, you would do well to remember that the property market is ever-changing, so past performance isn’t always a good indicator of future performance.
Median Rents: From the Most Expensive Suburbs to the Most Affordable Ones
Based on the CoreLogic report data for Q4 FY23, there’s a considerable gap in median rent prices between the most expensive and the most affordable suburbs for both houses and units in the Perth property market.
The median rent in Perth’s most expensive suburb for house rentals, Dalkeith, is $1,329 per week, and its median house price is $3,100,718. Dalkeith is followed by Swanbourne, Cottesloe, City Beach, and Mount Claremont.
To compare, Armadale takes the lead as the most affordable suburb for house rentals, with a median rent of $449 per week and a median value of $354,922.
When it comes to unit rentals, renting in North Fremantle generally costs the most compared to other suburbs, with a median rent of $771 per week. Alternatively, renting in Shoalwater typically costs the least, with a median rent of $367 per week, followed by Orelia, Baldivis, Dudley Park, and Safety Bay in that order.
Get a Free Rental Appraisal!
By tracking the promising growth in the Perth property market, you may rightfully feel that now is a great opportunity to rent out your investment property.
Nevertheless, it’s crucial to have experts assess your property and deduce the optimal rate for your property’s location, size, and condition.
Contact us now, and we’ll schedule an appointment for your free rental appraisal!