realestatebusiness logo
realestatebusiness logo
Subscribe to our newsletter SIGN UP

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

Concern continues over massive oversupply of units in Perth

30 June 2014 Andrew Jennings

With the number of rentals available continuing to rise this month in Perth, the Real Estate Institute of Western Australia (REIWA) believes it's putting pressure on property managers, who are becoming very stressed with the demands from owners.

David Airey, president of REIWA, revealed there’s a massive oversupply in the Perth rental market, with over 5,500 rentals available and the vacancy rate at the four per cent mark.

"There's a huge number of apartments and units being built in Perth," Mr Airey told Residential Property Manager.

“We are reaching the stage where they're overbuilding with these huge numbers of developments going up, which statistically the take-up for them is significantly less than the amount of supply. In other words, they are building so many they are not easily going to be sold, let alone rented,” he added.


He said this means investors will not be attracted to buy a new apartment in the inner city, where the highest vacancy factors are.

Mr Airey believes this is putting a strain on property managers in the city.

"Owners' expectations of rentals haven’t fallen with the market,” he said. “You have got owners saying, ‘Hang on, why can’t I rent my property?' And the property managers say, 'Well you need to drop the rent’, and then the rent drops and the property still doesn’t lease,” he said.

"Vacancy factors are high, the average time taken to rent a property in Perth is out at around 40 days, so that can be a six-week vacancy wait and that is just the average."

Concern continues over massive oversupply of units in Perth
lawyersweekly logo
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast

Why we’ll keep delivering for our communities in the face of COVID-19


As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of REB.

Read more
Do you have an industry update?
Ensure you never miss an issue of the Real Estate Business Bulletin. Enter your email to receive the latest real estate advice and tools to help you sell.