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As Perth rental prices continue to head north, entrepreneur Marty Spargo is contemplating moving to Malaysia.
Spargo, who is living in a share house in Belmont, was recently told by his landlord that his rent would rise by $100 a week.
Marty Spargo is planning to move overseas to Malaysia where accommodation is more affordable. Credit:Marty Spargo
“It’s pretty grim trying to find a new place. I’ve given up. Any time a decent rental is posted the owner is quickly overwhelmed with enquiries. It’s just too competitive,” he said.
“You just have to take whatever you can get or live in a tent.”
Spargo said he was eyeing a move to Malaysia next year where accommodation was more affordable.
“For what I’m paying for a share house in Belmont, in Kuala Lumpur I could rent a luxury three or four-bedroom apartment,” he said.
Perth tenants have been dealt another financial blow as house rents soar to a record high median of $500 a week while unit rents are set to reach a record before the end of the year.
Affordability constraints, overseas migration and the return of foreign students saw unit rents jump 5 per cent over the quarter to reach the highest point since 2013, sitting at $420 a week, the latest Domain Rent Report for the September quarter, released on Thursday, showed.
Domain’s chief of research and economics Dr Nicola Powell said if unit rents continued to rise at the current pace they were on track to set a new record high next quarter.
Powell said Perth remained the second most competitive capital rental market in Australia and as a result rents had risen sharply over the past two years, providing the steepest upswing since 2007-08.
“Perth continues to operate in a landlords’ market with little relief for tenants who are operating in a severely undersupplied [environment] that favours landlords,” she said.
“Vacancy rates have fallen to their lowest point on record, falling 35 per cent over the past year, meaning rental demand remains ahead of available supply.”
Powell said although rents remained on the rise there were signs of a slight reprieve for tenants seeking a house with the rate of quarterly and annual growth in rent easing, suggesting that the peak growth phase could have passed.
North Fremantle, Woodlands and Doubleview have each recorded around 30 per cent increases over the past year in the median asking rental price.
Some suburbs have seen an improvement in rent affordability with the median weekly asking rent dropping 7.5 per cent in Bullsbrook ($430), dropping 7.2 per cent in Churchlands ($770) as well as falls around 5 per cent in Mosman Park and Applecross.
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