(We have been experiencing huge numbers of rented properties since December)
REIWA President Hayden Groves said Perth's latest vacancy rate for January 2018 had improved significantly since June 2017.
(Bearing in mind this is already old news now as we now go into March)
"It's quite remarkable to see it this low considering seven months earlier Perth's vacancy rate soared to 7.3% - the highest we have ever experienced and not it's back at levels last seen in 2015".
"The vacancy rate is a good indicator for how the entire rental market is tracking, with reiwa.com data for February showing stable rent prices and declining listing levels. Leasing activity did drop off in February, however levels are still healthy and trending above long term averages", Mr Groves said.
February always has been an up and down month for rentals, we think because people are still away.
The reiwa.com vacancy rate is compiled using data obtained from a monthly survey of REIWA members. The survey details how many rental properties members manage and how many of those are vacant.
Reiwa has a lot of members so the data would be reasonably accurate.
Mr Groves said there were a number of factors that had contributed to lowering the vacancy rate, such as an increase in population growth and a reduction in average tenure time.
Now with the lithium mine going gang busters we may just explode a bit more, might be Rockingham that gets a bit of a surge.
"Population growth in WA has started to improve. Rental markets always feel the effects of population trends, with new entrants into the state the first to soak up the rental stock".
"Tenants are also moving more frequently. In 2014 for example, the average tenure time was 45 months, fast forward to 2017 and it's now 34 months, which is almost a full year less. This had led to an increase in leasing activity which has driven demand for rentals and had a positive effect on the vacancy rate".
When prices dropped we found that tenants found more renovated, presented and cheaper properties in comparison to their current one, so they simply moved we had a lot of that going on.
"Another contributing factor is the reduction in the number of dwelling commencements across the Perth Metro area. This has played an important role in lowering the vacancy rate. With less new dwellings coming onto the market, existing rental stock is now being soaked up, which is why rental listings have declined 19% over the last year."
I still think there is way too many apartments being built here in WA for our population and some developers are hurting a lot as you see them dropping their prices to try and sell their completed developments.
"After a challenging few years for landlords and investors, it's pleasing to see some parity return to the rental market, with tenants and landlords seeing benefits simultaneously, "
Mr Groves said.
Its a shame that the landlords did not put away for renovating their properties in the boom times as they were really getting excellent returns. I renovated my older property when a tenant moved out and now its gorgeous and already within the first week we have had a bite.
Landlords you need to shape up your properties and make them attractive as it will only benefit you in the long run - let's face it add it up how much have you actually spent on your property since you bought it??
MAKE YOUR OWN DECISIONS & GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!
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