Rental vacancy rate is increasing

[Olauf]

Tenants are becoming increasingly hard to find and prices are falling because the number of properties available for rent in Perth has increased. My previous tenant was paying $420 and I have now reduced the rent down to $390 as I have been struggling to find a new tenant for the last 2 weeks. Clearly there is like an oversupply or rental properties on the market in Perth thanks to the low interest rate when a lot of people are building/buying instead of renting.

If the trend continues it would no longer make sense for me to invest in a second property in Perth and would want to consider Greater Western Sydney.

 

[Singo]

I think there is a rent correction happening in certain areas of Perth. 12 months ago rents went up crazy. Now it seems it is going slowly back to realistic levels. And I reckon house price rising also gonna slow down/stop in these areas.

 

[perthguy]

I think there is a rent correction happening in certain areas of Perth. 12 months ago rents went up crazy. Now it seems it is going slowly back to realistic levels. And I reckon house price rising also gonna slow down/stop in these areas.

4x2s around me were up around the $650+ mark for a while. I don't think that is sustainable. But I am putting my house on the market for rent, so of course I would like to get a good rent.

 

[Colin Rice]

Property can be purchased in the low to mid price range for the same as renting, interest only with an offset that is hence the movement of bodies from rental to PPOR.

 

[thokkotu]

Hi

Does this impact properties in East and North Perth as well ? I have 2 apartments that i a buying off the plan and wonder how this will impact.

I am expecting the apartments to be completed mid 2015 !

thanks ....

 

[thatbum]

I think there is a rent correction happening in certain areas of Perth. 12 months ago rents went up crazy. Now it seems it is going slowly back to realistic levels. And I reckon house price rising also gonna slow down/stop in these areas.

I think it still depends on the area. My Langford rental is now slightly above market rate because of a fall there in the last 6 months - but in Hilton I still had heaps of interest on a one bedder with a big rent hike (I think its because of demand near Fremantle and Murdoch).