Perth’s rental vacancy rate rose to 1.4% in August, marking a significant increase from the updated July figure of 0.7%, according to REIWA.
This is the first time the vacancy rate has exceeded 1% since June 2022, when it stood at 1.1%, REIWA CEO Cath Hart (pictured above) said.
Hart noted that Perth’s rental market has faced challenges for several years due to strong demand and limited supply, resulting in record-low vacancy rates and rising rent prices.
“The rental market has been challenging for several years, with strong demand and declining supply leading to record-low vacancy rates and rising rent prices,” Hart said.
However, she said that the market has shown signs of moderation recently, with median rents stabilising, supply gradually increasing, and properties taking longer to lease.
Hart expects the vacancy rate to continue easing in the coming months.
“These changes have now shown up in the vacancy rate and we expect further easing of the vacancy rate over the remainder of the year,” she said.
Despite the increase, the current rate of 1.4% still reflects a tight rental market, far below REIWA’s balanced market range of 2.5% to 3.5%.
Hart emphasised that it will take sustained improvement before the market reaches equilibrium.
Rental market conditions in Perth can differ greatly from suburb to suburb, highlighting the importance for brokers to guide their clients effectively.
Hart advises property owners to work closely with their property managers to gain insights specific to their area.
As the market evolves, brokers must stay informed about local dynamics to provide valuable advice to investors and help clients make well-informed decisions in a changing environment.
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