Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

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

Perth vacancy rate pushes closer to 40-year low

By Bianca Dabu
19 November 2020 | 1 minute read
Perth

The residential vacancy rate across Perth declined slightly in October, coinciding with a drop in new investment financing.

The Real Estate Institute of Western Australia (REIWA) noted October’s residential vacancy rate in Perth as slightly lower than September’s, now sitting at 0.95 of a percentage point.

It’s close to the 40-year low of 0.8 of a percentage point reached in 2007.

Advertisement
Advertisement

REIWA president Damian Collins said that despite the vacancy rate squeeze and low interest rates being on offer, the market still lacks any significant response from investors.

As vacancy rates come closer to the 40-year low, investor lending activity remains at low levels, with demand for investor finance 77 per cent lower than its peak.

“In 2007, when the vacancy rate hit below 1 per cent, investor lending activity in the peak six-month period was $5.8 billion,” Mr Collins said.

“However, despite seeing the same investment opportunities, investor lending finance in the six months to September 2020 is 77 per cent lower than this.”

The REIWA has welcomed recent indications from the WA government that it would not be extending emergency tenancy laws, noting it as “critical” that investors get back into the market.

“Otherwise, there will be a significant increase in the demand for public housing,” he warned. 

Rental activity

The REIWA found that there were only 2,786 properties listed for rent on reiwa.com.au by the end of October, which was 53 per cent less than the year prior.

Perth’s median rent increased by $25 to $375 per week when compared to 2019 data. Still, the WA capital remains the cheapest capital city to rent across Australia.

Right now, the proportion of family income needed to meet rent repayments in REIA’s Housing Affordability Report is 16.1 per cent in WA, making it the most affordable capital city in Australia. The ACT follows behind, with 19.2 per cent of family income needed to meet the average rental repayment.

Mr Collins did indicate that he expects further increases to rent in the city moving forward, noting that “when the freeze on rents was put in place, Perth’s median weekly rent was sitting at $350, which is far from the $450-plus rents many experienced during the boom in 2013”.

“While the potential increase will impact some people, most will be able to adjust household size and location which will free up stock and help limit rent increases to a slower, manageable pace,” he concluded.

Perth vacancy rate pushes closer to 40-year low
Perth aerial new reb
lawyersweekly logo

ABOUT THE AUTHOR


Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

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.