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Ahead of an impending review of tenancy laws, Perth’s vacancy rate has recorded its highest monthly increase since April 2020.
With ’s vacancy rate and rental listings rising, the REIWA suggests that there is light at the end of the tunnel for property investors.
According to the REIWA, Perth’s vacancy rate rose 1.2 per cent in June 2021.
This figure represents the highest that the vacancy rate for the Western City capital has been since August 2020, and the biggest month-on-month growth since April 2020.
REIWA president Damian Collins said this trend is indicative of a return in investor confidence.
“While we are still a way off the 2 to 3 per cent figure required for a balanced market, the improvements observed since the end of the rental moratorium are encouraging and suggest there is light at the end of the tunnel,” Mr Collins said.
“The past few years have been incredibly challenging for the WA rental market, and during the downturn, a lot of property investors were impacted. This was further exacerbated during COVID-19 when legislative controls, like the rental moratorium and rent freezes, were introduced.
“These measures have hurt the rental market a lot more than they have helped, forcing many investors to exit the market and causing a rental shortage. Now that the rental moratorium is over and the property market is recovering, investor confidence is starting to return,” he said.
According to REIWA data, rental listing in Perth have increased 5.7 per cent since March. The suburbs showing the most growth here have been Balga (+108 per cent), Osborne Park (+67 per cent), Kardinya (+60 per cent) and Piara Waters (+54 per cent).
Going forward, Mr Collins predicted the market “should see more available rental properties hit the market as investors return and current tenants take advantage of WA’s affordable house prices to become first home buyers.”
However, he warned that the upcoming review of the Residential Tenancies Act poses a threat to the WA rental market and could deter potential investors looking to capitalise on growth in the region.
“If the outcome of the review is that the RTA is made more onerous for property owners, investors will exit the market in large numbers again, causing stock levels to plummet and rents to soar. With positive trends starting to emerge in the rental market, now is not the time to be making significant changes to the RTA,” he said.