news

1 in 5 vacancies due to broken leases

By Steven Cross

Tenants are leaving the rental market in droves with low interest rates and affordability creating a buyer’s market in Western Australia.

Speaking toSmart Property Investment's sister publication Residential Property Manager, president of the Real Estate Institute of Western Australia (REIWA) David Airey said the rental market in Western Australia was undergoing a period of pain.

“Things are definitely slow, we’ve had a big increase in vacancies across the state due to the downturn of the mining boom," he said.

“The rental market is also suffering from tenants vacating properties in record numbers.”

According to data gathered by REIWA, 20 per cent of all vacancies on the market are as a result of a broken lease, with the previous tenant becoming a first home buyer.

The tenancy lease data gathered by REIWA is derived exclusively from members of the association and allows property managers to specify why the lease was broken.

“We currently have a vacancy rate of 3.8 per cent, which means there are 4,500 properties available, an increase of 100 per cent from last year,” Mr Airey said.

But Mr Airey said the market was due for a correction after booming for years.

“We’ve had three years of extraordinary growth and owners are still enjoying good results from their investments, but I am expecting more pain before things begin to stabilise,” he said.

1 in 5 vacancies due to broken leases
SPI logo
Thank you.

Your enquiry has been sent to a local Aussie Mortgage Broker.

We will be in contact with you shortly.
Opps.

error occurred.
Unfortunately Aussie cannot attend to your home loan related enquiry at this stage as you must be a citizen or permanent resident.
Do you need help finding the right loan for your investment?
What Aussie do for you:
  • Give expert mortgage advice to help you find great investment loan deals
  • Help you maximise return by lowering financing costs
  • Save you time and effort by helping with the paperwork
First name
Last name
Location
Mobile Number
Are you an Australian Resident?
promoted stories

Top Suburbs

Highest annual price growth - click a suburb below to view full profile data:
1.
BLUE BAY 49.18%
2.
PAMBULA 43.5%
3.
BERKELEY VALE 42.74%
4.
POINT PIPER 40.52%
5.
NORTH TURRAMURRA 38.12%