Residential vacancy rate at new high

Rental rates for residential properties in Perth have fallen by 23 per cent over the past three years, the largest fall for any major capital city since World War II, while the vacancy rate has hit a new high.

SQM Research has estimated Perth’s residential vacancy rate hit a high in June at 5.0 per cent.

That was up from 4.7 per cent in May and 3.6 per cent in June last year.

The latest WA figures compare with a national vacancy rate of 2.5 per cent, with the worst numbers outside Perth being Darwin at 3.0 per cent and Brisbane at 2.8 per cent.

Sydney and Melbourne were both below the national average, defying fears of a speculative bubble in both cities.

SQM said Perth has recorded ongoing falls in asking rents of 9.1 per cent for houses and 10.0 per cent for units over the past 12 months.

Its rents index fell to 452.9 for houses and 360.4 for units in Perth.

“The rental market slump continues for Perth,” managing director Louis Christopher said in a statement.

“Rents are now down in that city by 23 per cent over the last three years.

“Outside the current situation for Darwin, I don’t believe rents have fallen this much for any Australian capital city since the Second World War.”

SQM said there were 10,190 properties for rent in Perth in June, up from 7,184 a year ago.

By comparison, the Real Estate Institute of Western Australia’s latest data for the month of May shows an even higher vacancy rate of 6.0 per cent.

Reiwa said there were 11,328 properties available for rent in Perth, up from 8,586 a year earlier.

Its data showed that houses (6,922) made up the majority.

SQM’s calculations of vacancies are based on online rental listings that have been advertised for three weeks or more compared to the total number of established rental properties.

SQM said it considers this to be a superior methodology compared to using a potentially incomplete sample of agency surveys or relying on raw online listings advertised.