Perth rental market on the slide
The rental sector in Perth has taken another hit in June, with high-end properties the worst affected.
According to data from the Real Estate Institute of Western Australia (REIWA), the median rent in the city dropped by $10 to $450 per week.
The citywide vacancy rate is now 4.2 per cent, up by one per cent from June last year.
REIWA president David Airey blamed an oversupply of rental properties for the soft conditions.
“There is now 43 per cent more rental stock available than the same time last year, which has been driven by a downturn in jobs, very little interest from investors and the fact many tenants have left the rental system to become first home owners,” Mr Airey said.
The desirable western suburbs were hit hardest, with rents falling by $30 for a median of $550 per week.
Luxury rentals were experiencing even greater losses, according to Mr Airey.
“The more expensive, executive properties over $800 per week that were in such strong demand a few years ago are now very slow to rent, and asking rents for these have dropped by up to 25 per cent, according to REIWA members working in the western suburbs,” Mr Airey said.
Despite the downturn, some suburbs have seen the median rent increase.
South Perth, Victoria Park, Belmont, Swan, Kwinana and Rockingham all had their medians bumped up by $10 in the month.
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