Vacant Perth rental properties drop below 10,000

Vacant Perth rental properties drop below 10,000

By Sasha Karen
Perth rental property market drop

For the first time since January 2016, the number of vacant rental properties in Western Australia’s capital have fallen below 10,000, which may be indicative of future rent rises.

Data from the Real Estate Institute of Western Australia shows the fall of vacant PerthPerth, TAS Perth, WA properties to 9,990.

Shane Kempton, chief operations officer of Professionals Real Estate Group, said this fall is significant and attributes it to an increase of investment in the resource sector and improvement in WA’s state economy.

In comparison to this time last year, there were 10,924 vacant rental properties.

“Over the past two years, there has been a surge in vacant rental properties in Perth due to weak population growth and a boom in new home construction. The number of vacant rental properties in Perth peaked well over 11,000 earlier this year and has been on a steady decline since,” Mr Kempton said.

“With the number of vacant rental properties on a downward trajectory, Professionals is predicting that by mid next year landlords in Perth will be able to review their rents upwards once the rental vacancy rate falls below 3.5 per cent.”

Over the last two years, Mr Kempton said landlords in Perth have cut rents, discouraging new investors entering Perth, but now expects to see an increase of investor levels with the decrease of vacancies.

“Once rents start to rise, we should see an influx in property investors into the Perth market particularly as property prices in Perth are so competitive,” he said.

“For example, the median price of a home in Perth is around half that of Sydney and substantially below that of Melbourne.

“Now is a great time to buy an investment property in Perth, especially in the more affordable areas of Perth where there a still a plentiful supply of homes for under $400,000.”

Of note is the south-eastern corridor of Perth from Kenwick to ArmadaleArmadale, WA Armadale, VIC, to which Mr Kempton stated: “is very established with a high level of social infrastructure including a rail link to Perth as well as schools and shopping [areas] which appeal to renters”.

Kenwick in particular, Mr Kempton said, offers a median price for a home of $340,000, located 15 kilometres away from Perth’s CBD, and is in proximity to a train station and has access to the Albany and Roe highways.

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Vacant Perth rental properties drop below 10,000
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