Supply increase helps rent squeeze

An increase in the supply of rental accommodation in Perth has eased pressure on rental accommodation at a critical time, according to the latest monthly survey by the Real Estate institute of WA.

REIWA president Neville Fox says the situation for tenants seeking new rental accommodation has improved slightly in recent months after available rental properties had fallen to their lowest level since the America’s Cup days of the 1980s.

“The vacancy rate in Perth’s rental market was 2.5 per cent in May 1999, which is still very tight. However it is up from the low point of 1.8 per cent last year,” Mr Fox said.

“A vacancy of three per cent is considered to be an equitable balance between demand and supply for rental accommodation.”

Mr Fox also believes the impending GST is having an impact on the market.

“One of the strongest parts of the housing market currently is sales of new blocks of land. Some homebuyers are bringing forward their plans in order to escape the GST on the building costs”, he said.