Perth, the capital city of Western Australia, is known for its vibrant culture, stunning natural beauty, and a thriving economy. As such, it has become a popular destination for both tourists and individuals seeking short-term accommodation in Perth. However, recent trends have sparked a debate about whether rental prices are going up in Perth. This article will delve into this topic and provide insights into the current state of short term rentals in Perth.
The Current State of Short-Term Rental Perth Market
The short-term rental market in Perth has been experiencing significant changes over the past few years. According to data from the Real Estate Institute of Western Australia (REIWA), there has been an upward trend in rental prices since 2020. The average weekly rent for properties in Perth was recorded at $395 in December 2020, marking an increase from $350 recorded during the same period in 2019.
This surge can be attributed to several factors including increased demand for Short Term Accommodation in Perth due to interstate migration and decreased supply due to owners selling their investment properties amidst rising house prices.
Understanding the Demand for Short-Term Rentals
One of the key drivers behind the increasing rental prices is the high demand for short term rentals. With its beautiful beaches, world-class restaurants, and exciting attractions like Kings Park and Botanic Garden or Swan Valley vineyards, Perth is a popular destination among tourists. Moreover, with remote working becoming more prevalent due to COVID-19 pandemic restrictions, many people are choosing to relocate temporarily to enjoy a change of scenery while they work.
Additionally, as borders reopen after prolonged closures due to COVID-19 restrictions, there has been an influx of interstate migrants moving to Western Australia for work or lifestyle changes. These factors have led to increased demand for short-term accommodation in Perth.
Impact on Short Term Accommodation Prices
As demand outstrips supply, it’s only natural that rental prices will rise. This is especially true when it comes to short term rentals where flexibility and convenience often come at a premium price. According to SQM Research data, vacancy rates for rental properties in Perth have dropped significantly over recent months – indicating that more people are seeking rentals than there are available properties.
Furthermore, with fewer international students and temporary visa holders due to travel restrictions – who typically occupy long-term rentals – property owners are shifting their focus towards short-term rentals which offer higher returns on investment.
What Does This Mean For Renters?
For those looking at Short Term Accommodation in Perth or considering a short-term rental option – whether it’s because you’re visiting on holiday or moving interstate – it’s important to be aware that you may face higher costs than previously expected.
However, despite these increases, renting can still be an affordable option when compared with buying property given current house price growth rates. Plus renting offers flexibility – crucial if you’re not sure how long you’ll be staying or if your circumstances change suddenly.
Conclusion
In conclusion, yes – rental prices are indeed going up in Perth, particularly within the short-term rental market. The combination of increased demand driven by tourism and interstate migration coupled with decreased supply has led to this surge.
However, this doesn’t mean that renters should despair! There are still plenty of options available across different price ranges depending on your needs and budget. It’s always recommended that potential renters do their research before committing – consider location proximity to amenities like shops or public transport as well as property features like parking or outdoor space when making your decision.
Despite these challenges facing renters today one thing remains clear: With its stunning landscapes vibrant culture and booming economy – there’s no denying that Perth remains an attractive place both live work play!v
