Tenants are trapped in a Hunger Games-style battle to secure a rental property in Perth with more than 50 enquiries flooding in for each listing that hits the market — the highest level in the country and almost double the national average of 28.9.
A PropTrack Rental Report, released on Wednesday, has highlighted just how tough conditions have become in Perth as new and total rental listings significantly dropped in March by 34.1 and 54.2 respectively, compared to their decade average.
Limited supply has seen rental prices surge by 15.5 per cent in Perth, representing an increase of $85 a week.
Meanwhile, median advertised rental prices on realestate.com.au went up by 5.8 per cent over the March quarter, tracking towards another year of double-digit price growth.
PropTrack Economic Research director Cameron Kusher said the latest report made it clear there were not enough properties available for rent in Perth and it would take time for conditions to improve.
“Even if you look at the second highest market (for enquiries), Adelaide, you’re looking at 40.6 enquiries per listing compared to 52.3 in Perth so there is intense competition for anyone who’s unlucky enough to be looking for a rental property — it’s really tough out there,” he said.
“When you consider how much rents have increased, how quickly properties are leasing, how big the declines in rental listings have been, and then you look at how much enquiry per listing there is, I think it’s pretty clear that Perth has the toughest market for renters,” he added.
Though there has been a ramp up in investor lending in WA, Mr Kusher said a heightened level of investment was needed for a period of time to really start positively impacting supply.
“Some of the stock that these investors would be buying would be current rental properties so you’re just substituting one owner for another, or they may have it as short-term rental accommodation rather than long-term rental accommodation.
“On the on the demand side of things, you’ve also got the population of WA growing quite rapidly so whilst you might be growing stock, the demand for that stock is also growing as fast if not quicker, and WA is getting the double whammy with very high levels of net overseas migration and very strong net interstate migration as well.”
According to the report, regional WA is also experiencing exceptionally tight conditions with the total number of listings sitting 61.2 per cent below the 10-year average, the greatest decline of all rental markets.
Rental prices in regional WA surged 14.3 per cent over the year – the second greatest increase of all markets – to a median of $600 per week.