The Perth rental market’s vacancy rate has dropped to 1.6 per cent, the lowest rate since March 2008.
The Real Estate Institute of WA (REIWA) warns that a vacancy rate of around 3 per cent strikes the ideal balance between supply and demand, but there are currently 50 per cent less properties for rent on reiwa.com than in July, 2019 – a drastic drop.
“The vacancy rate has remained below 3 per cent for 21 consecutive months, which has ensured rents generally started to stabilise after the post mining boom downturn,” REIWA President Damian Collins said.
“However, with it now sitting below two per cent, we are starting to see the impacts of limited stock, and it is only a matter of time before rents rise. In some areas, agents are reporting rents are already on the move up.”
Vacancy rates are also falling in regional areas; Albany and Kalgoorlie both currently sit at 0.9 per cent.
“There are a number of factors that may have contributed to lowering the vacancy rate, such as the lack of new supply due to investors staying out of the market, expats returning back to WA, and investors selling their investment properties,” Mr Collins continued.
“Investors are concerned about returning to the market due to the limitations on their ability to put rents to market and evict tenants who do not pay their rent.
“While we’d prefer to see the legislation lapse in its entirety, if there is an extension, it must be for the very small number of tenants still affected.
“If we don’t encourage investors back into the market, then the rental shortage will only get worse.”
