Prior this quarter, Perth experiences already a bloated rental market. There are thousands of investors especially residential rental but we have outstripping demand. Anyhow, falls in interest rate, slow population growth and oversupply affects the slump. Is it a great time to be a renter?
According to Domain Chief Economist Dr. Andrew Wilson, “There was no indication in rents picking back up. It’s good news for tenants but not so good news for landlords.”
Based on the figures released by Real Estate Marketing group Domain, The average cost of renting a house in Perth has dropped 4.4% in the past 3 months. Rental properties continue to rise and vacancy rate of 4.1%. Who will be blamed? Will it be the resources sector downturn or the first homebuyers? Housing supply continues to rise and demand weaker as migration drops. Rent reduction is now the norm in order to attract tenants. Because of the rental properties sluggish, landlords exerted time to wait in finding a tenant and negotiate for a long time term lease if wanted to see an income.
“So, that surge in demand has weakened now and of course we’ve seen rent’s tracking back to what you might describe as more normal levels,” Dr. Wilson said.