Australian Property News

Perth rental vacancy hits 14-year high

Posted on Friday, October 16 2009 at 8:37 PM

Perth's rental vacancy rate has hit a 14-year high at 4.8 per cent, according to the Real Estate Institute of Western Australia's (REIWA) preliminary September quarter data.

In December 1995 the rental vacancy rate peaked at 5.4 per cent, but since this time the rate had dipped, said REIWA president Alan Bourke.

While Perth's overall median rent remains at $360 per week, unit median rents have declined by more than one per cent.

Bourke said the increased vacancy rate was due to first homebuyers moving out of rentals and freeing up stock.

"In addition to this, data for dwelling commencements in the June quarter shows that nearly 1600 new units and apartments were completed, along with 4660 houses. Even so, there are still 16,700 dwellings currently under construction, including 5800 units and apartments," said Bourke, of the significant contrast to the east coast housing supply.

"This is despite a five per cent increase in sales turnover in the September quarter, which saw the stock of listings available for sale fall below the notional equilibrium level of 12,000 properties, down to 11,200," he said.

Over the recent three months, REIWA observed a 1.5 per cent median house price increase to $457,000.

"Interestingly, turnover amongst homes valued at between $500,000 and $600,000 was the strongest segment for the quarter," Bourke said of the positive growth noticed in trade-up buying.

The highest performer above the Perth median for the September quarter was the City of Melville, up by 3.5 per cent, while Belmont and Stirling East recorded four per cent and two per cent growth respectively, reported REIWA data.