Median rents in regional areas of Western Australia have been reasonably stable during the March 2010 quarter, however there have been some exceptions.
Regional rent figures released today by the Real Estate Institute of WA (REIWA.com.au), show the median rentals in the Pilbara region are still more than triple the price of metropolitan Perth.
Median rents in The mining areas of Port Hedland and Karratha were $1200 and $1600 per week, as reported by Alan Bourke, REIWA President.
In Karratha rents jumped by $200 per week whereas, in Port Headland rents dropped by $250 per week, in the first quarter of 2010..
Busselton was the only other region to show a sharp increase in median rents, with typical prices rising by around $20 from $280 to $300 per week during the quarter.
Most other regional centres saw a steady rental market, with places like Geraldton-Greenough, Kalgoorlie-Boulder and Greater Bunbury recording no change.
“Although the Geraldton region saw no fluctuation in its median rent, the vacancy rate of available properties did increase from 4.2 per to 5.2 per cent, a trend that may see some downwards pressure on median rents if it continues”.
“By contrast, the vacancy rate in Kalgoorlie-Boulder tightened from 5.8 to 4.6 in the March Quarter. .
Again, if this trend continues it may have the effect of putting pressure on rent increases in the medium term,” Mr Bourke said.
Although Bunbury recorded no overall change, it did see a big jump in median rents for units, which leapt from $265 per week to $290 per week during the quarter. .
The Peel region, closer to Perth, saw Mandurah-Murray median rental rates increase by $5 to $290 per week. Yet vacancy rates fell by 0.2 per cent to 2.3 per cent - a rate described by Mr Bourke “quite low”.
“In the Mandurah region, the vacancy rates have tightened significantly, from the 3.7 per cent evident in the September quarter 2009. “It may be that part of the reason for this is that the more affordable rents available in Mandurah have been attractive to some Perth residents who are moving to the seaside town and are able commute by train to the city if necessary,” Mr Bourke said .
In Albany, the vacancy rate has grown from 3.8 per cent at the end of last year to 4.2 per cent in the March quarter. This has seen median rents drop by around $10 to $280 per week.
Mr Bourke said the rental system in the regions was more sensitive to employment conditions and seasonal work opportunities.