Perth’s rental market is off to a flying start for 2019, with the vacancy rate at the lowest level it’s been since 2013 according to industry body the Real Estate Institute of Western Australia (REIWA).
REIWA President Damian Collins said the 2.8 per cent decline is a rapid improvement, and landlords are well positioned to take advantage of the favourable conditions.
“The rapid improvement we’ve observed in the last 18 months is impressive, especially considering the vacancy rate peaked at 7.3 per cent in June 2017 – the highest it’s ever been.
“Now that the vacancy rate is below three per cent, we can safely say the market is in a recovery phase with landlords now the beneficiary of the current rental environment,” Mr Collins said.
Perth’s overall median rent has held stable at $350 a week for seven consecutive quarters.
“It’s the longest stretch of stable rents Perth has seen since we first started capturing rental data in 2001,” Mr Collins said.
Despite the overall market remaining stable, there were 105 suburbs that recorded an increase in price, with North Coogee, Churchlands, Ardross, Daglish and Munster the top performers.
Mr Collins told WILLIAMS MEDIA the results were very pleasing for landlords.
“If the rental market continues on its current trajectory, we should see Perth’s overall median rent price increase in 2019, which will be a welcome development for landlords,” Mr Collins said.
Leasing activity slowed during the Christmas period, which Mr Collins said is very common for that time of year with fewer people searching for properties.
There were 6,865 properties for rent in Perth at the end of the December quarter.
“Listings continue to reduce, with the December quarter figure down 10 per cent on the September quarter and a substantial 27 per cent on the same time last year,” Mr Collins said.
“The sharp decline in listings is a driving force behind why Perth’s vacancy rate has improved. With population growth in WA on the incline and fewer new-building projects commencing, listing stock is being absorbed more quickly.”
“With fewer available rentals on the market, competition amongst tenants has increased requiring them to act faster to secure a lease,” Mr Collins said.
“The signs for 2019 look very promising. The rapidly improving rental landscape combined with Perth’s favourable buying environment should hopefully see more investors enticed back to the market.”