Where is the Perth rental market heading for 2021?
Finally! 2020 is coming to an end and the horizon on 2021 is looking glorious. In an industry where we have seen so much change in the last year, it’s positive news that we are welcoming the new year with some stability.
As we all know, the rental market is shifting, with the average rent increasing by 6.8% to $395, according to Domain.
We are seeing lower days on market, leading to quicker turnaround times for our clients. The industry’s vacancy rate is 0.95%, with Blackburne’s sitting even lower at 0.38%. It feels good to know that we are continuing to be below the average and knowing we produce the best results for our clients.
So how did we get here?
Talking to the people on the ground, we have discovered some compelling factors attributing to strong demand for rental properties:
- Perth residents are returning home from being overseas
- FIFO workers who are generally based in the Eastern States are being incentivized to stay within WA
- Tenants that are currently in a property are staying put, as they are protected from rents rising.
- Landlords, particularly those who purchased in the boom and have not enjoyed particularly generous returns to date are selling their investment properties, to seize the opportunity a buoyant market presents.
- The lack of properties coming onto the market suggesting lack of investor confidence as a direct result of the extended legislation.
The number of properties to market is down nearly 50%. If this trend continues, we are going to hit crisis mode, which is predicted around March. Who would have thought we would be sitting here at the end of 2020 saying this: Now is the time to BUY and EXPAND your investment portfolio? If you have been considering the idea and looking for a sign, here it is.
Opportunity is all around you, investors that purchased property in the boom who have been holding on for a better time to sell, are letting go of those properties now. The sales market is steadily growing, though not at the rate rental prices are.
If you are worried about the moratorium, it’s good to be cautious, though it’s really not as scary as it sounds. Evictions on some grounds are still taking place, and it’s coming to a close in March.
If you would like to talk to an expert about the suburbs you should be looking at, call our Business Development Manager Paige Garvey, as she is an expert in this field and will be more than happy to help. Her friendly approach will make the experience enjoyable.
On a final note, our offices will be closed as of 18th December 2020 and will reopen 4th January 2021.
We would like to wish our valued clients a very Merry Christmas and a Happy New Year. We got through this year together, let’s see us flourish with the new opportunities 2021 will bring.
With best wishes,
The Blackburne Property Management Team