For how many weeks since the RBA cut their interest rate, the rental market in Western Australia is struggling to recover and to cop up. Mining resources slow down so housing market is affected. One of the factors being blamed why is the rental market faced-off because of the slowdown in the resources boom.
According to the Real estate Institute of WA, “Premium rents in Perth have dropped by up to 30% and by up to 40% in the Goldfields and Pilbara. As I have mentioned, mining is the main resources that really affects and influence the rental market. The number of rental home vacancies has double at the moment. The resource has driven the economy, but as we have seen, many people loss their job and find another job to another state and country that resulted a big rent reductions. Interest rate cut plays a big rate to cope up despite of the falling in rent vacancies, but the house is more affordable.