Where Perth rentals may go in 2011? There are both optimistic forecast and cautious opinion.
According to Australian Property Monitors, $100 billion of resources projects will go ahead in Perth and this will lead to strong growth in the economy and wages and salaries. This will drive house price growth in Perth and put a lot of pressure on rents. APM suggested that you will be looking at above-average rent increases (possibly a percentage increase in the double figures) by the end of the year.
The latest Real Estate Institute of WA (REIWA) data for the three months to January show the median weekly rent is up by $10, to $380. Increased demand, coupled with a strengthening economy, has supported the APM forecast of rental increase in Perth this year.
However, REIWA president Alan Bourke was more cautious.
He said while the outlook for rents remained “unclear”, if sellers continued to find it hard to offload their properties, they might put them on the rental market, increasing supply and thus the vacancy rate.
That could dampen further increases.
“The housing system is all about supply and demand,” he said.
He further emphasized whether rents will increase further depends on demand and this is driven by the broader economy and the availability of jobs.