According to reiwa.com’s latest preliminary data, the vacancy rate for rental accommodation across Perth has risen to 4.9 per cent in the three months to May as the number of properties for lease increased.
This is the highest vacancy rate in six years, after it reached 4.8 per cent in the September quarter of 2009.
There are now 8,147 homes looking for tenants, up by almost 600 over the last month.
REIWA President David Airey said the slowdown in Western Australia’s population growth rate had created the oversupply, along with a significant amount of newly constructed dwellings coming to completion.
“The competition among property owners is having an effect on price, with the metropolitan median rent dropping by five dollars on the March quarter to $425 per week, which represents a cut of $25 on the same time last year,” Mr Airey said.
Perth’s median rent peaked at $475 per week in the middle of 2013, but has since fallen by $50, or around 10 per cent, across the board.
“The long term equilibrium for Perth’s vacancy rate is three per cent, so the current situation means there is over 50 per cent more properties on the market than is usual,” Mr Airey said.
Mr Airey called on landlords to ensure properties were well presented and priced right to meet the market.
“Owners need to be realistic about the current market in order to attract and maintain good tenants,” he said.