Perth rental vacancies at record lows

Rental vacancies in Perth have dropped to a record low of 0.5 per cent, well below the national rate of 1.1 per cent and almost half of what they were 12 months ago.

The city’s rental vacancies are 0.4 per cent less than they were this time last year and rental vacancies across the state are at record lows, new data from CoreLogic shows.

Nationally, rental vacancies are at a record low of 1.1 per cent, down from 1.4 per cent 12 months ago.

Perth recorded the second lowest rental vacancy in the country, behind Adelaide at 0.3 per cent, the data revealed.

Rental prices in Perth have increased at the highest rate of any city in Australia, rising by 13.2 per cent during the past 12 months to a median of $604.

Nationally, median rents are $558.

Perth remains one of the most affordable places in the country to own or rent, with Sydney’s and Canberra’s median rents at $726 and $649 respectively.

CoreLogic economist Kaytlin Ezzy said worsening affordability was placing significant downward pressure on rental growth in recent months.

“After recording a small dip over the first few months of COVID, national rents have risen for 38 consecutive months, taking rental values 30.4 per cent higher since July 2020 and adding the equivalent of $137 to the median weekly rent,” she said.

“With the rising cost of living adding additional pressure on renter's balance sheets, it is likely tenants have hit an affordability ceiling, seeking to grow their households to share the growing rental burden.”

Ms Ezzy added that low rental vacancy rates and insufficient housing supply was broad issue impacting regions around the country to different extents.

“Record high net overseas migration, fuelled by a combination of an increased flow of new arrivals and weaker departure numbers, coupled with a continued shortfall in rental listings, saw the vacancy rates falling to new record lows across both the combined capitals (1.0 per cent) and combined regional markets (1.2 per cent),” she said.

Property experts say a normalised rental market has about a 2.5 to 3 per cent rental vacancy.

Listings

CoreLogic’s latest data follows information from the Real Estate Institute of Western Australia that new listings dropped to record lows in September, at less than 5,000.

Compounding the issue of housing availability, dwellings are also selling at a record low of nine days.

Perth’s median house prices increased by 1.3 per cent last month, with median values at $618,363.