Kate Hodges PerthNow May 01, 2012
THE crippling rental squeeze in Perth has been confirmed with latest figures showing that rental prices have increased by over 14 per cent in the last 12 months.
Rental growth varied across the capital cities, with industry researchers RP Data finding smaller increases along the east coast, and rents actually decreasing in Hobart.
Perth’s leap in rental prices was found to be the biggest in the country.
This only adds to data released last week by the Real Estate Institute of WA (REIWA) that showed Perth had a vacancy rate of just 1.9 per cent for the March quarter.
RP Data research director Tim Lawless said higher rents and lower home values were contributing to higher rental yields, with the average capital city house now returning a gross rental yield of 4.2 per cent, and units returning 4.9 per cent.
In Perth, rental yield for a house was 4.3 per cent, and 4.7 per cent for a unit.
RP Data also found that in the three months to April, house price values in Perth took a dip with the median dwelling price down 0.8 per cent to $460, 325.
Compared to this time last year, the median dwelling price was down 2.8 per cent.
Perth’s latest performance was cited as the weakest of any capital city for the quarter.
Rismark’s Managing Director Ben Skilbeck attributes the national declines for the quarter to uncertainty surrounding interest rates, and anticipation of first quarter inflation figures.
He says the soft home values and today’s expected interest rate cut ‘point to a further improvement in housing affordability.’
‘If the Reserve Bank does cut interest rates today and then again in June (as is highly anticipated by the financial markets), home buyers will benefit from considerable affordability gains,’ he says.
‘The housing market is likely to see improved conditions, building off the stability evident in the first quarter.’