Perth’s Rental Vacancy Rate Jumps to 2-Year High

Perth’s rental market is showing signs of change, with the vacancy rate jumping to 1.4% - the first time it’s surpassed 1% for more than 2 years.

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The figures from the Real Estate Institute of Western Australia (REIWA) show the vacancy rate increased 0.7% from the previous month and is the first time Perth’s vacancy rate has surpassed 1% since June 2022, when it was recorded at 1.1%.

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Rent Choice general manager Clare Christiansen said the rise in the vacancy rate was being driven by more stock coming to market as new builds were being completed.

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“In recent months we’ve seen an increase in tenants wanting to break their lease so they can move into their newly built homes. Similarly, we’re seeing more investors come to market with newly completed properties for lease,” Clare said.

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“This has a two-fold effect because it is freeing up existing rental stock but we’re also seeing additional rental properties come to market.”

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Despite these changes, Perth’s rental market remains tight. At 1.4%, the vacancy rate is still well below the ideal range of 2.5% to 3.5%, which is considered a balanced market by REIWA.

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What Does This Mean for Landlords?

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For property owners, the increase in vacancy rates could signal the beginning of more competitive conditions. As more properties become available and rent prices stabilise, landlords may need to adjust their expectations regarding how quickly they can find tenants and what rental rates they can achieve.

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It’s crucial for landlords to stay informed about the specific conditions in their area, as market trends can vary significantly from suburb to suburb. 

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Renters: Is Relief in Sight?

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For renters, the slight rise in vacancy rates offers a glimmer of hope after years of tight conditions and rising rent prices. With more properties available, there could be more options on the market, potentially leading to more favourable lease terms and price negotiations.

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Looking Ahead: What to Expect

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REIWA anticipates further easing of the vacancy rate through the rest of 2024, though the market will remain tight in the near term. REIWA CEO Cath Hart notes that the current 1.4% vacancy rate is still far from balanced, and it will take some time before supply and demand levels reach equilibrium. Until then, both landlords and renters should expect gradual but continued shifts in the market.

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How Rent Choice Can Help

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At Rent Choice, we specialise in helping landlords navigate changing market conditions. Whether you're adjusting rental prices, marketing your property, or negotiating lease terms, our expert property managers ensure you get the best possible outcomes. 

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If you’re a renter, we can help you find the right home that fits your needs, even in a tight market. With the right strategy and insights, there’s always an opportunity.

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For more information or to discuss how these changes impact your property, get in touch with us today!

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Source:

Perth’s vacancy rate rises past 1 per cent. (n.d.). REIWA Public Website. https://reiwa.com.au/news/perth-s-vacancy-rate-rises-past-1-per-cent/

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