As at the end of August the Perth rental market had dropped to a 12 year low with a vacancy rate of 1.6%. Perth’s vacancy rate has not been this low since 2008. Contributing factors to this could be a lack of new supply due to investors staying out of the market, returning expats to WA and investors selling their properties.
The vacancy rate has remained below 3% for 21 months, which has generally stabilised rents after the post mining boom downturn. A balanced market would see a vacancy rate sit around 3%. Some regional areas are experiencing a lower vacancy rate than Perth. For example Kalgoorlie and Albany are reporting a vacancy rate of 0.9%. Current rental listings with REIWA are sitting 50% lower than at the same time last year. This is creating a lot of competition amongst prospective tenants. We will start to see the impact of limited stock and its only a matter of time before rents start to rise.
Information has been sourced from REIWA.