The city’s vacancy rate has dropped to 1.6% in July, the lowest level recorded since March 2008. The conditions of Perth’s rental market indicate a substantial imbalance between supply and demand.
Perth's vacancy rate has remained below 3% for 21 consecutive months, which has ensured rents generally started to stabilise after the post-mining boom downturn, said Damian Collins, president of the Real Estate Institute of Western Australia (REIWA).
"However, with it now sitting below 2%, 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," he said.
Collins said it is vital for the state government of Western Australia to remove all restrictions and limitations for non-COVID-19 affected tenants with the review of the Residential Tenancies Act 2020.
"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," he said. "If we don't encourage investors back into the market, then the rental shortage will only get worse."
|
Area |
Property Type |
State |
Median Price |
Quarterly Growth |
12 month Growth |
Weekly Median Advertised Rent |
Gross Rental Yield |
|
Metro |
Houses |
WA |
$462,000 |
-1.0% |
-2.1% |
$370 |
4.1% |
|
Metro |
Units |
WA |
$339,000 |
-1.1% |
-3.7% |
$335 |
4.8% |
|
Country |
Houses |
WA |
$320,000 |
-1.5% |
-1.5% |
$350 |
5.6% |
|
Country |
Units |
WA |
$176,250 |
-3.4% |
-10.0% |
$300 |
7.9% |
Source: CoreLogic, August 2020
