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 realestate.com.au or reiwa.com.au  (both have the same properties,  realestate.com.au 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.

Continue

Should I move to Perth?

I personally think Perth has got to be one of the ultimate expat destinations.  Angela and I often discuss that it will be hard to top Perth with the next assignment.  I can tell you for certain we don't regret the decision for a second.

The family on the South Perth Foreshore

The upsides are:

• Weather - I challenge you to find a place with better overall weather
• It's safe
• People are friendly
• Good health care
• It's an outdoor city - Bike, Run, Swim, Sail all year round
• You are maximum 40 minutes to an endless coastline of beaches.
• Language - If you're coming from an english speaking country....Aussie's speak English even though sometime it doesn't seem like it.
• Good schooling is available
• There are tonnes of expats that are in the same boat as you.  They are coming in and out just like you in large number.

Cottesloe Beach - 25 minutes from the Perth CBD

The downsides are:

• It's far from everything.  Perth is one of the most remote cities in the world.
• Cost of living.  Perth is poke a stick in your eye expensive.  It's drop f bombs, swear out loud in the middle of the restaurant expensive.
• The sun is vicious.  2 out of 3 people in Australia will be diagnosed with some form of skin cancer.  
• It's not a cultural mecca.  I often hear Perth called boring.  I disagree but it is not London, New York, or even Edmonton when it comes to cultural goings on.

A great place to raise kids

So when making the decision the major thing to consider is:  What standard of living will you have in Perth?

If you're coming on an expat / foreign service package that includes housing etc. which is common among the Energy and Mining expats then you're all set.  On the other hand...if you need to cover all of your costs, I highly suggest you do research on the costs of living.

What have I missed?

Continue