Perth tenants should brace themselves as rising house prices, improving economic conditions and more newcomers to the state combine to force up rents this year, a leading property researcher says.
The latest rental report by Australian Property Monitors shows asking rents in Perth have increased in the first three months of the year.
The median weekly asking rent for houses in the metropolitan area is now $370, a $10 increase on the previous quarter and the first rise in more than a year, while units increased $8, to $358.
But with rising house prices, increased rents have not led to increased yields. The gross yield for houses is now 4.06 per cent, while units are yielding 4.62 per cent.
That leaves Perth ahead of only Melbourne among all state capitals.
APM economist Matthew Bell said he expected Perth rentals to increase a further $10 a quarter for the rest of the year, with a strong resources sector and population growth the driving factors.
But this was unlikely to be fast enough to maintain yields, which would drop slightly as house prices rose further. The median Perth house price is believed to have passed $500,000.
Really, the outlook for both rents and house prices is pretty strong,” he said.
“Yields will probably soften again, but historically they are at pretty good levels.”
Houses were usually bought by investors for capital growth, with units offering better yields, Mr Bell said.
Meanwhile, the Urban Development Institute of Australia said its own research showed a six-month delay in planning approval could add 7 per cent to the price of an average block in the metropolitan area.
UDIA WA chief executive Debra Goostrey said developers were doing what they could to ensure “affordable” land was being made available during a time of increasing prices.
“We also need the support of a fast and efficient planning approvals process to avoid costs associated with delays,” she said.
Her comments follow those last week by property researcher Terry Ryder, who said claims of housing shortages were a beat-up by property industry lobby groups.
Housing Development on the Banks of the Moore River
Posted in Living in Perth, Local News, Realestate and Home Loans, tagged 15000 people., 2000, 2000 new homes., 6000 people, allowed, allowing, approved, area, build, Cabinet, comment, cut 60 per cent, cut by 60 %, decade, develop, developer, development, expected, forward, Gingin, go ahead, home, Homes, infrastructure, John Day, Living in Perth, Local News, major, Marcus Plunkett, Minister, Moore, moore river, much needed, needed, new, on the banks of the Moore River, Original plans, parliament, people, Planning Minister, plans, plans for approval, population, population of around, public, public comment, released, residential, revised, revised plan, river, shire, shire of Gingin, smaller, told, tourism, tourism development, trying, WA on June 11, 2009| Leave a Comment »
Finally after a decade of trying to get plans to develop on the banks of the Moore River, they have been given the go ahead to build 2000 new
homes.
Planning Minister John Day told parliament Cabinet had approved a smaller development that is allowing a population of up to 6000 people.
Original plans have been cut by 60 per cent which would have allowed a population of around 15000 people.
Marcus Plunkett the developer has said ” this will ensure that the shire of Gingin will have a major residential and tourism development which will bring much needed infrastructure to the area.”
This development will still need to put forward plans for approval, a revised plan is expected to be released for public comment.
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