Perth to avoid rental crisis: REIWA

Demand for rental accommodation in Perth has stabilised, according to the Real Estate Institute of Western Australia, despite rents rising slightly over the past few weeks.

Data released by the institute today showed the metropolitan vacancy rate at 1.9 per cent for the first three months of the year, which included falls to 1.6 per cent in the months of February and March alone.

REIWA President David Airey said house rents rose by $5 per week over the quarter, while rents for units, villas and townhouses increased by $20 per week.

“The overall median rent for Perth is now $420 per week, which breaks down to $425 for a house or $400 for a unit, villa or townhouse,” he said.

“This represents an rent increase of 10 per cent on the same time last year.

“The good news for tenants is that the vacancy rate does not appear to be dropping any further and seasonal demand is levelling off.”

Mr Airey said stock levels for rental accommodation had improved by 12 per cent since the start of March, after a 28 per cent fall in January and February.

He said he was confident Perth would avoid the rental crisis experienced in the March quarter of 2007.

“As the market slowly improves more people are deciding to buy a place of their own and investors are now contributing more to the housing stock as well,” Mr Airey said.

“I think it’s safe to say that the rental market should balance out for the remainder of the year.”