Perth’s vacancy rate dipped to 0.7% in September, marking a 0.1% decrease from August.
weekly market snapshot
Perth's Rental Market: A Tightening Vacancy Rate.
Perth’s vacancy rate dipped to 0.7% in September, marking a 0.1% decrease from August.
The vacancy rate had seen an increase to 0.9% in July, but has since been on a declining trend. Long-term patterns indicate that rental listings usually decrease towards the year-end, suggesting that the vacancy rate will likely stay low in the upcoming months. In fact, it had plummeted to a record low of 0.6% last December, and current data hints at a possible repeat.
The tight conditions in Perth’s rental market are attributed to a combination of low supply and robust demand. The state's sustained population growth keeps the demand for rental properties high, while persistent construction delays compel residents to extend their stays in rental properties, disrupting the typical market turnover.
Despite ongoing interest from investors in the Eastern States and a stabilization in the reduction of rental properties in the market, demand continues to outstrip supply. This long-standing issue requires a comprehensive and prolonged approach for resolution.
The current rental market scenario underscores the urgency for a steady influx of new homes and a legislative framework that encourages investment. Investors face several challenges, including increasing mortgage costs, insurance, and council rates. Legislative changes, like the recent adjustments due to the COVID-19 pandemic, have caused shifts in the market. Clarity and stability in legislation are crucial factors for investors' confidence and long-term commitment.
In particular, the finer details of modifications to the Residential Tenancies Act are still pending, causing some apprehension among investors. The rental market heavily depends on private investors, emphasizing the need for policy makers to be mindful of the delicate balance and ensure that changes do not inadvertently lead to a reduction in available rental properties.
