According to Cameron Kusher, RP Data Senior Research Analyst, “Rent are growing in certain areas despite the fact that (Capital) values are falling, so potentially things aren’t quite as bad over all for somebody who owns a property and just focusing on capital gains.”
Investors looking to a secure a property with strong rental yields and REIWA are not expecting to see demand for properties or the premium price, to ease over the coming months. There are some states remains stable their rental prices but Perth is one of the states has rent increased. According to REIWA, for the first in 3 years, Perth experiencing a mid-year rental hikes. Some people who have low income cannot afford for those high rental properties and across WA there is increase demand for social and affordable housing.
REIWA President David Airey said that the increase in demand for rentals has put upward pressure on rents, which had not seen a rent supply”. In economics, there is a saying that, when the demand is high, and the supply is low, then the price is high and when the demand is low and the supply is high, then the price is low. This is happening now in WA, there is rental growth happening because the demand is very high and the supply is low. However, still Perth’s property market is expected to pick up by the end if the year.