The number of vacant Perth properties has fallen below the psychologically significant 10,000 barrier, according to Shane Kempton, chief operations officer at Professionals Real Estate Group.
“The last time the number of vacant rental properties in Perth was below 10,000 was January 2016,” Kempton said. “Over the past two years there has been a surge in vacant rental properties in Perth due to weak population growth and a boom in new home construction. The number of vacant rental properties in Perth peaked well over 11,000 earlier this year and has been on a steady decline since.”
The latest figures from the Real Estate Institute of Western Australia (REIWA) indicates that there are now 9,990 vacant rental properties in Perth, compared to 10,924 during the same period last year.
According to Kempton, the number of vacant rental properties has been declining due to growing investment in the resources sector and an overall improvement in the Western Australian economy.
“With the number of vacant rental properties on a downward trajectory, Professionals is predicting that by mid next year, landlords in Perth will be able to review their rents upwards once the rental vacancy rate falls below 3.5%,” Kempton said. “Unfortunately, over the past two years many landlords in Perth have had to slash their rents, which has discouraged new investors [from] entering the Perth real estate market.”
Once rents start to rise, Kempton predicts there will be an influx of investment into the Perth property market, especially since prices are so competitive.
“For example, the median price of a home in Perth is around half that of Sydney and substantially below that of Melbourne. Now is a great time to buy an investment property in Perth, especially in the more affordable areas of Perth where there a still a plentiful supply of homes for under $400,000.”
“This is particularly the case in the south eastern corridor of Perth, stretching from Kenwick to Armadale, which is very established with a high level of social infrastructure, including a rail link to Perth, as well as schools and shopping, which appeal to renters,” Kempton said.
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