Rents plummet in Perth
Perth’s ailing rental market took a further hit in the last quarter as rents dropped and supply edged higher.
Data from the Real Estate Institute of Western Australia (REIWA) shows the median weekly rent fell by $10 for the second consecutive quarter.
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REIWA president David Airey reported the median rent is now sitting at $460 per week for houses and $440 per week for units.
“This represents a drop of 2.2 per cent in the three months to April and 4.3 per cent over the last year,” he said.
The data shows there are 5,000 rental homes on the market in the city, meaning the vacancy rate is currently at four per cent.
“Supply is now a third above where it might usually be and the number of properties for rent is around 56 per cent higher than the same time last year,” Mr Airey said.
He attributed the weakening of the market to a downturn in the mining sector, slower population growth and favourable interest rates.
“Many tenants have left the rental system to buy a home of their own while interest rates are very low,” he said.
Mr Airey encouraged landlords to talk to their property managers about adjusting their rents when searching for new tenants.