Perth resident calls out interstate property buyers for boosting rental and housing costs

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A disgruntled renter in Perth has called out property investors who are buying up homes and increasing rents in the capital city.

Taking to social media, the frustrated local shared they were continuously shocked their rent had increased by more than 50 per cent over the past year-and-a-half from $350 to $610 per week.

“I earn good money but house prices coupled with everyday expenses doesn’t allow me to save enough to buy a home,” the renter shared on Reddit on Tuesday.

Another gripe shared about interstate buyers was that locals were now being forced out of the housing market.

“I have friends who have made offers but investors are outbidding them every single time (by $50,000-60,000)”, the renter stated.

Perth’s median house sale price set a new record in March, rising 2.5 per cent to $620,000.

The median unit sale price also climbed 1.2 per cent to $420,000.

Real Estate Institute of WA chief executive Cath Hart said the ongoing strong demand for homes was putting pressure on prices.

“WA’s population continues to increase at a near record rates – up 3.3 per cent to over 2.9 million in the year to September 2023, dwelling completions are well below what’s needed to house those additional households and as a result people are driven to the established homes market in order to put a roof over their heads,” she said last week.

“This creates strong competition for homes, which in turn pushes up prices. We’ve seen house prices increase 12.7 per cent year-on-year, while unit prices are up five per cent.”

The social media post caught the attention of other struggling renters and prospective buyers in Perth.

“My wife and I looked at a wonderful little house the other day only to be informed there were ‘multiple offers’ that were $50k over the asking price,” one person wrote.

“Maybe they’re also young couples looking for their first home, but it’s incredibly disheartening.”

However, another suggested it wasn’t dissimilar to the rest of housing and rental market in Australia.

“Same thing is happening all over the country, not just Perth bud,” they wrote.

Ms Hart said while eastern states investors were a factor, local buyers were also willing to pay more for homes.

“Eastern states investors are certainly showing a lot of interest in WA at the moment, lured by our relatively affordable housing and the prospect of good yields, but these purchases are generally a financial decision for them,” she said.

“If the price becomes too high, they’ll look elsewhere.

“Local buyers are often more emotional. They may have a preference for a certain suburb or fall in love with a home and be willing to pay a premium price.

“This is particularly common if they plan to live in the home for a long time – they consider paying more worthwhile.”

Read related topics:Perth