Published on February 18th, 2013
Stable Perth vacancy rate attributed to investors
The stable vacancy rate of Perth rental real estate has been attributed to an influx of property investors.
Real Estate Institute of Western Australia (REIWA) data found that the vacancy rate remained at 1.9 per cent for the three months to January.
President of the REIWA David Airey said that this occurrence can be traced back to a number of factors, including tenants who are exiting the rental market to seek out real estate ownership.
He explained: "It may also be due to the return of some investors who are adding stock to the rental supply."
It comes as new data found that investors on a national level are doubly enjoying the fiscal benefits of property investment, as low interest and rising rental rates are seeing good returns.
News Limited reports interest rates have dropped by 1.4 per cent in the last two years, while over the last four years – weekly rental payments have jumped by 14 per cent.
Reserve Bank and SQM Research showed that investors of a $400,000 house on an interest-only loan are $601 per month better off compared with two years ago.
SQM managing director Louis Armstrong told the News Limited network that most investors are doing better than they were two years ago, as it is fairly likely that property values won't decrease anytime soon.
For Perth in the January quarter, Mr Airey added that the data shows the median rental rate remained steady at $450 a week, while detached housing saw a $10 increase to $470 per week.
"The March quarter is traditionally the busiest time of the year in the rental sector, but this year the vacancy rate seems to be stable at around 1.9 per cent and the median rent is also sitting still," the president elaborated.