Thursday, February 6, 2014

Renting a house in Perth: Prices are dropping

The topic of real estate in Perth is a common one.   The rental market in particular is like no other that I've ever experienced.   We're getting ready for a move to a different property and I cannot get over the difference in the market.
Two years ago when we arrived, property rentals went something like this:
Find a property on or  (both have the same properties, has a better site and great apps.)
Figure out when the next inspection will be.
Arrive on time or just before the inspection time.
Have your application pre-filled out.
Watch as 10-40 other families show up.  Apparently because of the way I look and dress, many will think I am the rental agent.
Offer full value or higher on the spot
Wait 2 days for an email that states that you have been unsuccessful.
All that on a property that was 1500 / week or more.  It was apparently extreme on properties under $700 per week.

Fast forward to today.   Newspapers are stating that rental vacancies are up 60+ percent from year ago levels and that unit rentals prices are down 2 percent.   My experience tells me that rentals rates are dropping much more quickly.   Many agencies have confided that rentals on properties in 1000 per week range are seeing drops of up to 200 dollars per week.

One of the agents the other night said to us "Houses $650 and under per week, no problem....$700 and over are getting really difficult to move"

Some examples of the funky and not so funky houses we've seen in our short experience lately:

A mansion in South Perth with a pretty much unusable kitchen that the owner wants someone to pay $900 a week for and will not commit to fixing anything....but wow what a cool building and amazing views.  I have to say, whoever the photographer on this was, good job mate, the inside did not look this good to us.

A property in Sorrento walking distance to the Beach / Ocean that was ultra modern but above what we wanted to pay at $1100 per week (the agent claims the last tenant was paying $1350)  This place had a very cool roof top balcony with ocean views and an oddly shaped pool.  

A good bones house in Gwelup that has been fit out as cheaply as absolutely possible and getting lots of noise from Karrinyup Road.  700 / week  I want to like it, I want to like it, I want to like it.....ummmmm NO.

And finally a nice house in South Perth.  I think this would have easily fetched 1300+ / week 2 years ago and they are struggling to get 980 / week.   ** Update - 8 days later this one came off the real estate boards and I thought, hmmm they did get that much.  A day later it's back on at 930/ week.


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