The Perth vacancy rate increased to1.2 per cent in June 2021, the highest-level Perth has seen since August 2020.
REIWA President Damian Collins saidnot only was it the highest vacancy rate Perth had seen since August 2020, butit was the biggest one-month increase since April 2020.
“While we are still a way offthe two to three per cent figure required for a balanced market, theimprovements observed since the end of the rental moratorium are encouragingand suggest there is light at the end of the tunnel, Mr Collins said.
Listings up as investor confidenceincreases
Since the end of March, reiwa.comdata shows listings for rent have increased 5.7 per cent in Perth.
The five suburbs to record the biggestpercentage growth increase in rental listings during this time are Balga (up108 per cent), Highgate (up 90 per cent), Osborne Park (up 67 per cent),Kardinya (up 60 per cent) and Piara Waters (up 54 per cent).
“The increase in listings sincethe end of the moratorium indicates investor confidence is starting to return.This is also backed up by the latest Australian Bureau of Statistics data whichshows investor loan approvals in Western Australia increased to $498 million inMay 2021, which is 10 per cent more than April 2021 and 209 per cent more thanMay 2020, Mr Collins said.
“The past few years have been incrediblychallenging for the WA rental market and during the downturn, a lot of propertyinvestors were impacted. This was further exacerbated during COVID-19 when legislativecontrols, like the rental moratorium and rent freezes, were introduced.
“These measures have hurt therental market a lot more than they have helped, forcing many investors to exitthe market and causing a rental shortage. Now that the rental moratorium isover and the property market is recovering, investor confidence is starting toreturn.
“As the year progresses, weshould see more available rental properties hit the market as investors returnand current tenants take advantage of WA’s affordable house prices to becomefirst home buyers. However, this will not happen if investors are furtherdeterred from buying property in WA.
Proposed RTA changes will hurt WArental market
“The review of the ResidentialTenancies Act (RTA) poses a big threat to the WA rental market. Whilst weare seeing improvements in Perth, there are numerous regional areas, such asAlbany, Broome, Bunbury, Esperance and Karratha where the rental shortage isstill severe and the vacancy rate remains below one per cent, Mr Collins said.
“Ifthe outcome of the review is that the RTA is made more onerous for propertyowners, investors will exit the market in large numbers again, causing stocklevels to plummet and rents to soar. With positive trends starting to emerge inthe rental market, now is not the time to be making significant changes to theRTA.
To viewall the latest vacancy rates for Perth and regional WA, visit the vacancy ratespage.