Rents across the Western Australian capital once again dropped, after signs the Perth rental market has continued to ease.
Data from the Real Estate Institute of Western Australia (REIWA) for the three months to April show a further drop of $10 to a median of $450 per week across the metropolitan area.
REIWA president David Airey said there were more than 5,000 rental homes on the market in Perth, representing a vacancy rate of four per cent.
“Supply is now a third above where it might usually be and the number of properties for rent is around 56 per cent higher than the same time last year.
“As a result we have seen the median rent slowly coming down over the last nine months, having dropped again around April,” Mr Airey said.
REIWA data show that there is little separating rents for houses and units, with a median weekly rent of $460 for houses and $440 for units.
“This represents a drop of 2.2 per cent in the three months to April and 4.3 per cent over the last year,” Mr Airey said.
REIWA says the median rent has dropped by $20 per week since last September when it peaked at $480 per week.
Mr Airey attributed the shift in the market to the downturn in the mining sector, slower population growth and first home buyer activity over the last year.
“Many tenants have left the rental system to buy a home of their own while interest rates are very low,” Mr Airey said.
Mr Airey said it was important for landlords to understand the changed conditions and to talk with their property managers about setting the right price for new leases.