The rental queue for this Clovelly home in NSW has nothing on the up to 80 regularly turning out to inspect homes in Perth’s more affordable suburbs.
Perth has turned into a tenants’ nightmare with nine of the nation’s 10 most competitive suburbs for rentals in the Western Australian capital, even as demand falls in other cities.
New PropTrack data shows those hoping to sign a lease in the city’s Bentley area will face the toughest challenge in the nation, with an average 160 competitors — triple the level recorded in some other Australian capitals.
And there are at least 130 inquiries per rental listing in eight other Greater Perth suburbs, including Tuart Hill, Lathlain, Queens Park and Balga.
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Adelaide was the only other state capital with a suburb to make the top 10 most competitive list, with Para Hills West attracting about 136 prospective tenants for each listing on realestate.com.au.
But there’s relief on hand for a handful of regions around the country, with another ten suburbs recording an at least 70 per cent reduction in demand from tenants, and listings in some now attracting 100 fewer would be renters than they were a year ago.
Coalfalls in Ipswich had the nation’s biggest drop in demand, falling 77 per cent, which means the average 36 lease inquiries today have fallen from about 145 at the same time in 2022.
Melba in the ACT and Chain Valley in Sydney also recorded a 77 per cent reduction, down by about 39 and 42 inquiries respectively.
WHERE RENTAL DEMAND IS DROPPING
Coalfalls (Brisbane) — 36, down 77%
Melba (ACT) — 13, down 77%
Chain Valley Bay (Sydney) — 14, down 77%
Kambalda West (WA) — 9, down 75%
Highfields (QLD) — 24, down 73%
Samford Valley (Brisbane) — 22, down 72%
Macquarie Links (Sydney) — 19, down 70%
Clunes (NSW) — 15, down 70%
Tamborine (QLD) — 40, down 70%
Higgins (ACT) — 18, down 70%
Source: PropTrack, tracks average key inquiries per listing and decline from past year
PropTrack economist Eleanor Creagh said in most scenarios a substantial fall in rental inquiries would reflect an increase in the number of homes available to lease, making newer suburbs and those with significant housing construction the most likely for tenants to face less competition.
In some regional areas there could also have been a “shift in economic conditions” leading to people exiting a region.
But that’s small consolation away from the eastern seaboard, where there are more than 100 inquiries per listing in at least 10 suburbs for both Adelaide and Perth.
Separate PropTrack figures show the two capitals are also home to some of the nation’s lowest vacancy rates, with Perth recorded at just 0.71 per cent in September and Adelaide down to a tiny 0.65 per cent.
Perth’s more affordable suburbs appear to be some of Australia’s hardest hit by a rental crisis.
“In Perth, to have 130-160 inquiries, that is triple what it is in some of the other capital cities,” Ms Creagh said.
“It may not get worse at the pace in which it has been over the past 12 months, but there’s nothing on the horizon to suggest we will see a significant increase in the supply of rental homes.”
She noted that the key inquiry figures used to define demand reflected those who had sought a phone number, email address or made a direct inquiry about a home listed for rent on realestate.com.au — but not all of them would proceed to inspect or apply for a home.
Perth-based Real Estate Institute of Australia president Hayden Groves estimated 60-80 groups would turn out for the first inspection of homes in the city’s more affordable areas, including Bentley which had high demand from students at nearby Curtain University.
WHERE RENTALS ARE MOST IN DEMAND
Bentley (Perth) — 160
Tuart Hill (Perth) — 152
Lathlain (Perth) — 151
Queens Park (Perth) — 145
Balga (Perth) — 145
Para Hills West (Adelaide) — 136
Beldon (Perth) — 135
East Cannington (Perth) — 132
Wembley (Perth) — 132
Midland (Perth) — 131
Source: PropTrack, tracks average number of tenant key inquiries per listing
Others, like Balga, might not be a “first choice” suburb, but areas where demand was being concentrated due to affordability.
“It shows that the lack of affordable supply is pushing tenants into these cheaper areas more than they would have in the past,” Mr Groves said.
This was exacerbated by limited options for affordable units going further out, with tenants likely to see fewer and fewer apartments and more houses listed with higher rents as they moved to the fringes.
Mr Groves also noted the city had received little investment as rents fell from 2012 to 2021, leading to present-day housing supply shortages as investors looked elsewhere to buy and build homes.
Adelaide and its suburbs aren’t far behind Perth, with demand for rentals above 100 in more than 10 of the South Australian capital’s suburbs.
But he said tenants who did not mind going a bit further afield could do well heading to mining towns where operations were being wound down, and demand from tenants could often fall quite quickly.
Otherwise, Mr Groves advice for tenants struggling to find a home anywhere in Australia was to go to the new estates where first-home buyers dominated and affordable prices could lure in investors.
“And I think share houses will have to become more popular, simply because the cost of keeping your own place is getting higher and higher,” he said.
The REIA president added that a single room for rent was less likely to have 60-80 people inspecting, or 160 inquiries about it.
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