PERTH’S residential vacancy rate has hit 0.8% — the lowest recorded level for 40 years, with the same rate being seen in 2007.
This is down from last month’s 0.95%, but with investment activity still stilted, supply low and demand increasing, this is likely to put upward pressure on Perth’s low housing prices.
According to REIWA, this is the 25th consecutive month that the vacancy rate in Perth has been recorded as below 3%.
“With listings lowering to 2,889 in November, which is 52% lower than the year prior, we are seeing upward pressure on rents with Perth’s median increasing by $10 in November to $390 per week,” said Damian Collins, REIWA president.
WA remains the most affordable state to rent in across the country, with the average family needing just 17% of their income to meet the median rent, according to the Real Estate Institute of Australia’s latest Housing Affordability Report. This compared to Queensland’s 21.6%, Victoria’s 22.4% and New South Wale’s 28.4%.
“As we head into 2021, we can expect rents to increase due to supply and demand factors, and this hopefully will encourage investors back into the market to increase stock levels, however we anticipate that rents will not increase to surpass our East Coast counterparts on the affordability scale,” said Collins.
“It is likely that we will reach the all-time low vacancy rate in early 2021, however, once the market returns to normal at the end of the moratorium in March 2021, we can hope to see a return of investors to the market and tenants adjusting household size, which will help to balance the market,” concluded Collins.