New data from the REIWA shows that 10 out of 11 regional centres in Western Australia experienced an increase in rents, or rents remained stable in the September quarter.

Five regional centres saw their median house rent increase over the quarter, while five centres had steady rents, said REIWA president, Hayden Groves.

“Rents in many regional areas took a hit following the slowdown in the mining sector," said Groves. 

"We’re now seeing stable or elevated prices emerging which is encouraging for landlords and property investors,” he said.

Karratha rental market

Karratha experienced the biggest increase in median house rents, rising from $400 per week in the June quarter to $450 per week in the September quarter, according to the REIWA.

David Hipworth of LJ Hooker Karratha told SCHWARTZWILLIAMS that activity levels have risen, but that has yet to flow through to rises in rents.

"What we are seeing is that there is a lot of interest in renting property," he said.

"We're getting good traction with people coming into town, and people upgrading to houses with better amenities."

"There's a lot of activity", he said. "I'm quite surprised."

Maintenance of mining, port and rail infrastructure is driving the increasing interest in Karratha rental property, according to Hipworth.

He said he expects rents will start rising in the second quarter of 2018, when the supply of rental property on the market subsides.

Hipworth said in October 2016, 225 properties were available for rent, and that has fallen to 154, but still has some way to go.

"We need to see that come down" before rents start rising, he said. Hipworth said the supply is across the board, from one-bedroom to four bedroom homes.

Rents in the Esperance Urban Area, Geraldton/Greenough, Kalgoorlie/Boulder and Mandurah/Murray regions also improved over the quarter, according to the REIWA.

Leasing activity

During the September quarter, leasing activity increased in six regional centres, with Northam and Port Hedland the biggest improvers.

“Despite its median house rent declining over the quarter, leasing activity in the small Northam market had a noticeable improvement, lifting from 34 leased properties in the June quarter to 45 in the September quarter,” Groves said.

Source: REIWA.

“In Port Hedland, stable rent prices and a 29.8 per cent spike in leasing activity over the quarter indicates the tide may be turning, which is welcome news for the region after a prolonged period of challenging market conditions.”

Leasing activity in the Albany Urban Area, Mandurah/Murray, Greater Bunbury and Busselton Urban Area regions also improved in the September quarter.

“It’s pleasing to see positive results emerging in the regional WA rental markets," said Groves. 

"Business and government investments in the regions have increased in the last six months, particularly in the Kimberley, Pilbara and South West, which has bolstered job creation and subsequently improved tenant demand,” he said.

“We expect regional rental markets to continue to improve as production of these planned investments ramps up.”

Read more about real estate in Western Australia:

House prices in regional WA rise for second quarter in a row

Mining town Karratha has turned the corner

The most affordable suburbs in Western Australia's South West