House rents stagnant but unit prices decline for first time since 2017 according to Domain

Perth has recorded its first stable quarter for rental prices in more than a year, with the average weekly cost for homes remaining stagnant at a record high of $700 a week.

Meanwhile, unit prices recorded their first fall since 2017 – falling 3.2 per cent in the quarter, according to Domain’s rent report in September.

Research and Economics Dr. It was an “extraordinary result” for the state’s capital, according to Nicola Powell, as the vacancy rate remained at just 0.5 per cent – the same as a year ago. A healthy rental market records vacancy rates of 3 percent.

“It’s still a homeowner’s market and that’s an unusual outcome,” Powell said.

“What it tells me is that budgets are stretched immensely across Perth and the affordability ceiling is not only not being reached, but is being torn apart.

“Tenants are crying, saying, ‘We had enough.’”

Rental price growth has far exceeded wage growth for several years, and that has caught up with the market, with renters shifting to more affordable suburbs, sharing homes or returning home, Powell said.

This decrease in demand is about to increase due to the federal government’s 5 percent deposit plan, which will further increase the number of people leaving the rental market.

“The impact of this plan will be significant for a city like Perth, where people have previously been locked into the rental market,” Powell said.