Tenants are leaving the rental market in droves as low interest rates and affordability present a true buyer’s market in Western Australia.
Speaking to Residential Property Manager, president of the Real Estate Institute of Western Australia (REIWA) David Airey said the rental market was undergoing a period of pain.
“Things are definitely slow, we’ve had a big increase in vacancies across the state due to the downturn of the mining boom," he said.
“The rental market is also suffering from tenants vacating properties in record numbers.”
According to data gathered by REIWA, 20 per cent of all vacancies on the market are as a result of a broken lease, with the previous tenant becoming a first home buyer.
The tenancy lease data gathered by REIWA is derived exclusively from members of the association and allows property managers to specify why the lease was broken.
“We currently have a vacancy rate of 3.8 per cent, which means there are 4,500 properties available, an increase of 100 per cent from last year,” Mr Airey said.
But Mr Airey said the market was due for a correction after booming for years.
“We’ve had three years of extraordinary growth and owners are still enjoying good results from their investments, but I am expecting more pain before things begin to stabilise,” he said.