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Category: Business, Economics and Finance / Housing Industry

Record number of Perth rental vacancies

Tuesday, 23 Aug 2016 16:51:17 | Briana Shepherd

Residential rental vacancies in Perth are double the national figure. (720 ABC Perth: Emma Wynne)

Perth's residential rental vacancy rate has hit a record high of 5.2 per cent according to new figures from property group SQM Research, which found 10,738 houses and units available for lease.

Perth's vacancy rate for the month of July was more than double the national level and almost twice that of Darwin, which had the second highest vacancy rate in the country.

It comes after Perth office vacancies also reached their highest level in 20 years, to 21.8 per cent.

Damien Collins from Momentum Wealth said decreased levels of migration into the state were contributing.

"It's really been driven by a lot of people building new homes and exiting the rental market," he said.

"Also the really significant downturn of migration coming into the state."

The report also found rents in Perth had fallen 8.4 per cent for houses in the past year and 10.8 per cent for units.

But Mr Collins said it was not all bad news.

"It is a concern but we've got to remember that 95 per cent, or thereabouts, of properties are still leased," he said.

"Tenants are still looking for places, landlords just need to adjust the rent to meet the market."

Mr Collins said while it was a tough time to be an investor in Perth, it would turn around.

"One thing we have noticed is that the building approvals and commencements has come off significantly so we're certainly finding that tenants aren't exiting as much to build new homes anymore," he said.

"We're still going to have a tough six to 12 months but like all cycles it will turn.

"The good news is interest rates have come down over that period of time so the most important thing to remember now is make sure you get a good quality tenant, hold them and drop your rent a bit."

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