Moreover, the rent dropped by $10 to $430 per week through the March quarter, which equates to $450 per week for a house and $420 for an apartment or villa.
The indicators suggest that the vacancy rate is set to head north in the coming winter months, said REIWA president David Airey.
“The Perth vacancy rate lifted to 4.4% for the first three months of the year, due to falling population growth, the volume of new dwellings on the market and the number of former tenants who became first home buyers while interest rates are low,” he said.
The number of rental properties on the Perth market currently have increased to around 7,080 from 5,140 on the same time last year.
In the middle of 2013, Perth rents peaked at $475 per week, but have dropped by 9.5% due to an increase of supply over the past two years.
Airey has two tips for investors in this climate of falling rents:
- They should review their asking rents to attract and hold good tenants amid the competition.
- It’s important for properties to be well presented and properly maintained to attract interest and secure the best lease in the shortest time.
