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Perth rentals increase 210pc in three years

Perth rentals increase 210pc in three years

by Elyse Perrau 0 comments

Property managers could have a bigger role to play with Perth landlords because of a “very competitive environment” created by oversupply.

Fresh data from the Real Estate Institute of WA shows the number of available properties on the Perth market has increased from 2,100 in 2013 to more than 6,500 today, pushing the vacancy rate up to 4 per cent.

Metropolitan rents are holding steady at $440 per week and the rental leasing times across Perth is averaging 36 days.

REIWA president David Airey said the oversupply in sales and rentals was a result of WA's slowing population growth and the effect of new building construction impacting on established home sales.

“With 6,500 rental properties available across the metropolitan area, that’s a 210 per cent increase since 2012 and it has pushed the vacancy rate over 4 per cent,” Mr Airey said.

“The number of properties listed for sale has also jumped by over 2,000 since the start of the year and sales have slowed by 15 per cent when compared to the same period last year.”

Mr Airey said there will likely be little price growth through 2015 and it will be a fairly slow market for those selling property and looking for tenants.

“It is essential that sellers and owners listen closely to the advice of their selling agents and property managers to ensure the right marketing and pricing in what will prove to be a very competitive environment.”

Mr Airey said the very high level of house and unit construction across the state, accompanied by a cut in population growth, had tipped the scales to oversupply.

“Added to this is the big fall in the number of first home buyers choosing established homes and building new ones instead.

“However, it's great news for buyers and tenants because it means there is a huge amount of choice and very competitive pricing.”

[Related: Perth property growth to remain weak]

Perth rentals increase 210pc in three years
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