Perth's "tight" rental market

Unless you’ve had your head in the sand lately, you will have been hearing a lot about Perth’s “tight” rental market.

Like all property commentary, I think it’s important to take note of the statistics and then to ask ourselves why this might be so, as well as what does it mean for you; the buyers, sellers and investors.

My first point is that I believe that this isn’t a short-term phenomenon just brought about by Western Australia’s rapidly growing population and current market conditions.

Rather, I think it reflects a structural change in the residential market here and represents new investment opportunities for all participants in the property market.

Factors such as housing affordability, the more transient nature of work, the desire to live in urban centres with their associated urban village  culture and  services, and the experimentation with different lifestyle options ahead of making firm, future decisions are all, I believe, driving the surge in demand for rentals.

As such, we can see this spike in rental demand and low vacancy rates as being an indication of a structural change in the residential property market and one that market participants should recognise and jump on, to maximise investment returns.

In essence, it’s a positive time to consider developing  and purchasing properties for the rental market because I don’t see this so-called “rental squeeze” coming to an end anytime soon.

We’ve changed. Perth has changed, and there’s a lot going on. Not only that, there is a growing proportion of our population ready and willing to rent, and stay renting.

“We’ve changed. Perth has changed, and there’s a lot going on. Not only that, there is a growing proportion of our population ready and willing to rent, and stay renting.”

Demand for rental property is exceeding supply and doesn’t look set to be satisfied anytime soon.

On this basis investors can see a new investment with strong, stable returns and a good future, provided they make informed choices and engage a solid property management service to care for both their tenant and their property.

There’s definitely no longer an argument to stand on the sidelines in the Perth residential property market. Opportunity awaits.