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Inner City Rent in Perth Skyrockets
October 23, 2012
If you live in Perth, it may not surprise you to learn that during the last financial year the average rent in City of Perth jumped by 18.6%. This was the greatest increase in weekly rents for any area in Perth during 2011/2012 and compares to an overall increase in median weekly rents for the metropolitan area of 13.2% during this 12 month period.
Rental market under pressure
The huge demand for inner city rental properties is highlighted by the fact that the median weekly rent in the City of Perth increased at more than five times the rate of outer Perth areas such as Armadale/Serpentine during the last financial year where the median weekly rent jumped by 3.1%.
This huge demand for rental properties in the inner city has meant that the median weekly rent for an apartment in the inner city has jumped to $575 – over $100 higher than the median weekly rent for a standard house in Perth.
Limnios Property Group, now has a rental vacancy rate of less than 1% with weekly rents for apartments increasing on average by $10 a month. During our four decades of servicing the inner city real estate market, we have not experienced a rental market which is currently under so much pressure due to the current famine of rental properties. In particular, the rental market for apartments has been transformed over the last 12 months with weekly rents for one and two bedroom apartments jumping by around 20% during the past year.
A good time to invest
Property investors are recognising that now is a perfect time to buy an investment property in the inner city area because low interest rates, combined with high rents and competitive property prices mean that you can now effectively hold an apartment for less than $100 a week. As a result of this trend, more than 50% of property buyers who have purchased an apartment through Limnios Property Group have been investors during the last three months.
If you are thinking of investing in an apartment, in Perth or otherwise, make sure you do your homework as you don’t want to have any costly surprises when the time to rent it out comes.
Check the exact internal floor space of the apartment. The price of the apartment should be measured in the cost per square metre and this will give you a good comparison compared to similar apartments in the same area. Before purchasing an apartment, check the average weekly rent for a similar apartment in the same location. This will give you an indication of future rental returns, also check the quarterly strata fees and if there are any plans to upgrade the complex.
How many apartments in the complex are owner occupiers? Owner occupiers tend to take a much more active interest in the upkeep of the complex. If more than 50% of the apartments are owned by owner occupiers then the complex should be well maintained. The views that the apartment can offer are also important. If you are buying an apartment with good views, check that nothing in the future will interfere with these views, such as the construction of a new building in front of your apartment.