Perth’s rental market has tightened significantly, with the vacancy rate dropping to an all-time low of 0.4% in March, REIWA reported.
This new record surpasses the previous low of 0.6% set in December 2022. Although the rate had risen to 0.7% in January 2023, it stabilized at this level throughout 2023 and into 2024.
Despite the historic low, REIWA President Joe White (pictured above) indicated potential shifts in the market.
“Some of our members are reporting there has been a slowdown in demand for the higher end of the market,” White said in a news release.
Data from REIWA showed a difference in leasing times based on rental prices: homes more than $1,000 per week are taking an average of 20 days to lease, while those under $1,000 are leasing faster, around 15 days, and even quicker in some more affordable suburbs.
“Demand remains strong in the more affordable prices brackets,” White said. “While in the mid-range, members are reporting numbers at home opens are declining in some suburbs, however they are still receiving multiple applications.”
Affordability remains a critical issue affecting tenant decisions.
“We have previously said there may be some self-adjustment in demand as tenants seek to cope with the dual challenges of rising prices and low supply,” White said.
This includes trends like increasing tenant household sizes, tenants opting to purchase homes, or staying longer in family homes.
The key to resolving the rental shortage, according to White, lies in boosting supply. Some positive developments have been noted, especially with new constructions owned by investors from the Eastern States making their way into the market, particularly in the outer suburbs.
“This is good news, but we still have a long way to go before we can confirm the market has changed and we see a return to a balanced market,” White said, suggesting that while there are encouraging signs, substantial challenges remain.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
