Perth’s vacancy rate takes 12-year hit
Perth’s vacancy rate has dropped to its lowest level in 12 years, according to new research.
Fresh data obtained by the Real Estate Institute of Western Australia (REIWA) has found that the Perth rental market’s vacancy rate dropped to 1.6 per cent. This is the lowest it’s been since March 2008.
REIWA president Damian Collins said a vacancy rate around 3 per cent is generally considered to create a good balance between supply and demand.
“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,” Mr Collins said.
“However, with it now sitting below 2 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.
“We are also seeing vacancy rates decline in the regions, with some areas experiencing a vacancy rate lower than Perth, such as Albany and Kalgoorlie, which are now at 0.9 per cent.”
Mr Collins flagged that in July, there were 3,553 properties for rent on reiwa.com. This, he noted, is 50 per cent less than what was available in July 2019 and “it is creating competition amongst prospective tenants”.
“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 said.
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