Perth Property Market Update: January to March Quarter 2023
The Perth property market has remained resilient in the first quarter of 2023, despite the recent rise in interest rates.
According to the latest data, the market is still going strong, with rental rates and yield in Perth showing steady growth. This is good news for property investors, as rising rental rates accompany increasing rental demand.
In this article, we will provide a comprehensive update on the Perth property market for the third quarter of the 2022-2023 financial year, from January to March 2023, covering rental rates and yields, rental demand, and median rents in different suburbs.
Rental Rates and Yield in Perth Show Steady Grow
Based on the data from the CoreLogic Report, the Perth market has continued to see positive growth in Q3 FY23, despite rising interest rates in Australia.
The median rent for all dwellings in Perth increased by 3.6% over the quarter, with house rents experiencing the largest increase of 3.5%. The current median rent for all dwellings in Perth is $573, and the current gross rental yield is 4.68%.
Over the past 12 months, Perth has recorded the strongest annual increase in rents across all the capital cities, with rents rising by 12.8%, equivalent to a $65 per week rental increase. This increase is higher than other capital cities such as Sydney and Brisbane, which saw annual rent increases of 12.6% and 12.3%, respectively.
In terms of vacancy rates, Perth’s vacancy rate has lowered significantly over the past 12 months, dropping from 1.1% to 0.6%. This indicates that the demand for rental properties in Perth is strong, which is driving up rental property prices.
Further, Perth’s gross yields have also improved over the past 12 months, increasing from 4.34% to 4.85%. This is higher than the current national gross yield of 4.18%. In terms of quarterly growth, Perth saw an increase of 18 basis points to 4.85%, which is the second-largest increase across the capitals in Australia after Hobart.
These insights suggest that the property market in Perth is experiencing strong growth, with rising rents, improving gross yields, and a decreasing vacancy rate.
Rising Rental Rates Accompany Increasing Rental Demand
Based on the CoreLogic report data, the Perth housing market has experienced a significant increase in unit rents in Q3 FY23. Perth recorded the second-highest quarterly increase in unit rents, with a rise of 4.6%. This increase is only slightly lower than the record-breaking 5.3% rise seen in Sydney.
Moreover, Perth recorded the largest rental appreciation across the low-density sector, with a rise of 3.5% over the quarter.
In terms of rental rates for the entire year, both houses and units have seen a considerable increase. Houses in Perth saw a rise of 12.7%, while units saw a rise of 13.1% over the past 12 months. These figures indicate a strong rental market in Perth, which may be driven by a high demand for rental properties with migration to Perth increasing.
All of these trends suggest that the Perth property market continues to remain strong and may be a good investment opportunity for those looking to invest in the rental market. Nevertheless, it is essential to keep in mind that the property market can be volatile, and past performance does not guarantee future results.
Median Rents: From the Most Expensive Suburbs to the Most Affordable Ones
According to the CoreLogic report data for Q3 FY23, the Perth property market has shown a significant difference in median rent prices between the most expensive and the most affordable suburbs for both houses and units.
The most expensive suburb for house rentals is Dalkeith with a median rent of $1,280 per week and median house prices of $3,122,351, followed by Cottesloe, Swanbourne, Mount Claremont, and City Beach.
On the other hand, Armadale is the most affordable suburb for house rentals, with a median rent of $428 per week and a median value of $331,304.
For unit rentals, North Fremantle is the most expensive suburb with a median rent of $766 per week, while the most affordable Perth suburbs for unit rentals are Shoalwater with a median rent of $350 per week, followed by Orelia, Baldivis, Safety Bay, and Dudley Park.
Get a Free Rental Appraisal!
With the data showing promising growth in the Perth property market, now is the best time to offer your investment property to potential tenants.
However, it’s vital to get your property assessed by the experts to determine the optimal rate for your property’s location, size, and condition.
Contact us now to arrange an appointment for your free rental appraisal!