The number of available properties available on the rental market is at a level never seen before, with 10,200 houses and units available for rent.
Real Estate Institute of Western Australia figures show the number of properties available to rent in Perth is nearly three times above what is considered to be the long-term average.
The oversupply of available rentals is putting downward pressure on rentals, with the median rent down to $395 per week for the three quarters to the end of March.
REIWA president Hayden Groves said:
“We are seeing rents fall, they will perhaps fall for the remainder of 2016 by a very small margin and that’s mainly because our population growth has changed so dramatically.
“Tenants certainly have the rental market in their favour at the moment.”
I’ve just come back from a short stay in Perth and I haven’t seen as many cranes in the skyline for a long time – unfortunately there is a large pipeline of properties still coming out of the ground.
At the same time consumer confidence is low in Western Australia and housing activity remains slow across the Perth property market, with sales volumes down 40% from the December quarter to the March quarter.
The $520,000 median house price for the first three months of 2016 is down 3.7% from the final quarter of 2015 and it’s likley house prices will fall a little further before they bottom.