South West WA November 2017

The month in review: South West WA

By Herron Todd White
November 2017

Generally the rental market in the South West WA region has favoured tenants over the past three years with rents steadily declining over this period.

Rents are now stabilising in many areas with limited incentives being offered.

Two-bedroom, 1-bathroom units can be rented in the Bunbury area for $200 to $250 per week. Three-bedroom houses and units typically rent for between $250 and $350 per week. Four-bedroom, 2-bathroom homes in the outlying areas mostly rent in the range or $350 to $420 per week while more executive homes typically rent at between $450 and $550 per week.

The cities of Bunbury and Busselton have the highest proportion of property being rented with 38% and 43% respectively. This is due to the higher proportion of unit developments compared to outlying estates and regional towns which have more detached houses and mostly range between 24% and 32% of properties being rented.

Gross yields around 5% to 6% are typical for many investment properties with lower yields expected for higher valued properties or those that have most of their value in the land component.

Gross yields up to 7% can be had for some lower value suburbs however there is a higher risk of poor tenants and higher ongoing cap ex maintenance costs.

The South West WA region offers a broad range of lifestyle options for people living in the area and consequently there is a very broad cross section of property types throughout the region available for renters. Generally the market still favours tenants but there are some signs that the market is starting to swing back to a more neutral position.