Low vacancy rates in Perth highlight investment opportunities
Western Australia continues to distinguish itself as a great choice for property investment.
With mining projects driving the local economy, commercial opportunities and employment prospects flow to the region.
The rental vacancy rate announced today (April 12) by the Real Estate Institute of Western Australia (REIWA) illustrates the increasing demand for residential accommodation.
Preliminary March Quarter data reveals that the metropolitan has low vacancy rates, specifically at 1.9 per cent, for the first three months of the year.
However, February and March figures alone represented a dropped level of 1.6 per cent.
The effect of these statistics has been felt most in the price of rent – which contributed to a ten per cent rise in the cost since this time last year.
Median rental prices for a house have gone up by $5 a week, while median unit rental prices have risen by $10.
“The overall median rent for Perth is now $420 per week, which breaks down to $425 for a house or $400 for a unit, villa or townhouse,” said REIWA President David Airey.
He added that the recent data reveals that “the stock level for rental accommodation has improved by 12 per cent since the start of March, in sharp contrast to the 28 per cent fall during January and February.”
While stock availability has somewhat mitigated the shortage, demand remains high.
High yields resulting from increased value and the likelihood of sustained growth represent an excellent opportunity for investors looking to expand their portfolios.
As the premier western destination for work, travel, entertainment, and with low vacancy rates – Perth continues to draw new residents and visitors alike.
Investors would likely benefit from a full analysis of the various markets in Perth to examine prime real estate locations.