Rent vacancies jump to 14-year high

The vacancy rate for available rental properties in Perth has jumped significantly to 4.8 per cent, fresh figures from the Real Estate Institute of Western Australia reveals.

The full statement is pasted below:

Preliminary data for the September quarter released last night by the Real Estate Institute of Western Australia, shows that the vacancy rate for available rental properties in Perth has jumped significantly to 4.8 per cent.

Newly elected REIWA President Alan Bourke said this was the highest vacancy rate in 14 years, when it reached 5.4 per cent back in December of 1995.

The overall median rent in Perth remains steady at $360 per week, however median rents for units alone have dropped by just over 1 per cent, or $5, to $355 per week.

Mr Bourke attributed the slack vacancy rate to two key factors.

"The very strong first home buyer activity over the last nine months has seen many renters move into a home of their own, freeing up their previous property back into the rental market.

"In addition to this, data for dwelling commencements in the June quarter shows that nearly 1,600 new units and apartments were completed, along with 4,660 houses. Even so, there are still 16,700 dwellings currently under construction, including 5,800 units and apartments," Mr Bourke said.

Mr Bourke said that in light of the slack vacancy rate and significant numbers of newly constructed homes coming onto the market, Perth did not have the housing shortage being experienced on the east coast.

"This is despite a 5 per cent increase in sales turnover in the September quarter, which saw the stock of listings available for sale fall below the notional equilibrium level of 12,000 properties, down to 11,200," Mr Bourke said.

Overall, Perth's housing market has experienced modest growth in the September quarter.
According to REIWA, Perth's median house price grew by 1.5 per cent, or around $7,000 over the last three months.

This has lifted the median to $457,000. Mr Bourke said the positive growth was encouraging and that trade-up buyers were returning to the market.

"Interestingly, turnover amongst homes valued at between $500,000 and $600,000 was the strongest segment for the quarter.

"REIWA data shows that the City of Melville performed best in the quarter for prices above the Perth median, up by around 3.5 per cent, while mid-range priced areas such as Belmont and Stirling East recorded 4 and 2 per cent growth respectively.

"At the more affordable end of the market there were mixed results, with Armadale-Serpentine down 2 per cent whilst Rockingham/Kwinana and Wanneroo North West both recorded a 3 per cent increase.

The average number of selling days has fallen by 5, to around 64 days. This is almost two weeks less than the same time last year.

Mr Bourke said that the winding back of the first home owners boost from the end of September may soften activity in the December quarter.