Vacancy rate increase signals shift away from rentals

Vacancy rate increase signals shift away from rentals

by 0 comments

The large number of people leaving the rental system to buy their first home might be a contributing factor in helping to ease the Western Australian vacancy rate, according to a senior industry professional.


Real Estate Institute of Western Australia (REIWA) president David Airey believes there are many factors driving down the vacancy rate, including first home buyers and the return of investors.

“It may also be due to the return of some investors who are adding stock to the rental supply,” Mr Airey said.

The latest rental data from the REIWA shows that in the three months to January there was a 13 per cent climb in the number of new leases from the December quarter.


Mr Airey said current data shows Perth’s overall median rent remains stable at $450 per week, however the median, specifically for houses, has risen by $10 to $470 per week.


Median rents for units, apartments, villas and townhouses were unchanged at $420 per week.


“The March quarter is traditionally the busiest time of the year in the rental sector, but this year the vacancy rate seems stable at around 1.9 per cent, and the median rent is also sitting still,” Mr Airey said.

Mr Airey said that stable house prices, low interest rates and the ongoing demand by tenants meant that rental yields were now more attractive to investors who had been absent from the market in recent years.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent grew his database by 50% in five years

In this episode of Secrets of the Top 100 Agents, Robert Pignataro joins host Tim Neary to explain how he increased his personal database by...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Yes
No
Depends on the group
Do you have an industry update?