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An industry body has revealed a dramatic population slump has had a direct impact on one capital city's rental stock, putting downward pressure on rents 'in all areas'.
The Real Estate Institute of WA’s president David Airey said a large increase in Perth's rental stock has occurred as a result of the sharp decline in migration.
“Migration peaked in the year to September 2012 before starting a rapid decline, with the latest readings of WA's population growth for the year to June 2014 falling to its lowest level in eight years,” Mr Airey said.
“The impact of this turnaround in migration is evident in the number of rental listings available, which have continued their upward trend since mid-November.”
Reiwa.com data shows the overall median rent fell 2.2 per cent to $440 in the latest December quarter, which was a result of a 2.3 per cent fall in the median multi-residential rent dropping to $420.
“The stock of property 'For Lease' bottomed out at around 2,100 in September 2012 and has grown some 200 per cent since. Over that time, the vacancy rate has risen from 1.8 per cent to over 4.0 per cent,” Mr Airey said.
Mr Airey said Perth's Central market, which is where the majority of WA's rental stock exists, was the first to feel the impact of this decline.
“There was a rapid build-up of stock through to late 2013, which also saw rents fall across the sub-markets over the past two years,” he said.
“In 2014, the downward pressure on rents spread to the outer parts of the Perth market, where there was a stronger build-up of stock in percentage terms than the Central market, which has put downward pressure on rents in virtually all areas.”
