Perth - rents now exceeding last mining boom peak
Perth is now dominating the country for population growth and with that comes increasing demand for housing . This has resulted in strong rental growth . So much so that advertised rents per week for houses now exceed the last mining boom peak reached in June 2013 , having increased by almost 16 per cent over the past 12 months . Unlike price growth which appears to have stalled , rental growth is expected to continue with population growth continuing and supply of housing being constrained . International and interstate borders reopening and increased construction costs is good news for property investors but conversely tough for renters .
With rental growth comes better yields on property . Yields for houses in Perth are now the second highest in the country , sitting at 4.37 per cent . This compares to Melbourne at 2.7 per cent and Sydney at 2.6 per cent . Mortgage rates may be creeping up but it ’ s still possible to get a higher rental yield on a property than the best mortgage rates . This is certainly not the case in most of the country .
The suburbs that have seen the biggest increases and decreases in rents show an interesting mix . Peppermint Grove and Claremont , two of the city ’ s most expensive suburbs , have seen the biggest decline in rents . Nearby Dalkeith has seen one of the biggest increases . More broadly , beachside remains popular with renters , with City Beach and Swanbourne seeing big jumps in rents over the past 12 months .
36