Online Calculator | Perth Rents Flat-lining With High Vacancy Rates

Perth Rents Flat-lining With High Vacancy Rates

New data on Perth Real Estate Rentals from the Real Estate Institute of Western Australia show that while the vacancy rate in Perth dropped slightly from 4.7 per cent in the December quarter to 4.1 per cent in March, the overall median rent remains unchanged at $370 per week.

REIWA President Alan Bourke said the slightly lower Perth Rental Real Estate vacancy rate was due to diminished stock and not to increased demand by tenants.

“What we are witnessing is that many investors who found it hard to sell in the last couple of years put their properties into the rental system to ride out the downturn.

“Now that conditions have improved, a portion of owners are listing their properties for sale which accounts for the increased volume of properties on the market, and hence the lower vacancy rate,” Mr Bourke said.

Mr Bourke said this dynamic also helped to explain why rents were stable.

“There is no great demand pressure to cause rent increases and it’s notable that typical rents in Perth have only grown by about $10 per week since the December quarter of 2008,” Mr Bourke said.

REIWA data show that the median rent for a house in Perth is $380 per week, up by a modest $5 on the December quarter, while the median rent for units, apartments, villas and townhouses was steady at $350 per week.

Despite no movement in Perth’s overall median rent, some sub-regions did experience rises and falls.

REIWA rental property data indicates rents grew by 6 per cent in the Bayswater-Bassendean region, to $350 per week, and also grew by 5.7 per cent in the north west section of Wanneroo ($370).

In contrast, rental rates were down by around 3 per cent in Gosnells to $330, and also in the Western Suburbs area to $440.

Mr Bourke said that a vacancy rate of 3 per cent was ideal for Perth and provided the right equilibrium between supply and demand.

“The current vacancy rate is therefore about 36 per cent higher than Perth’s long term average, but this can change quickly if jobs pick up strongly on the back of a resurgent resources sector,” Mr Bourke said.

In March 2007 the Perth Rental vacancy rate fell dramatically to just 0.8 per cent.

For more information on Perth Real Estate please visit http://www.reiwa.com.au – The Real Estate Instutitue of Western Australia.

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