Western Australia needs more real estate investors as it faces rental crisis risks, according to the Real Estate Institute of Western Australia (REIWA).
Rental listings in Perth remained on a downtrend in September, falling 8% to 2,926. This was the lowest level of listings since 2012.
Damian Collins, chairman of REIWA, said the state's "reasonable rent shortage" in the first few months of the year had become "severe".
"We are now on the brink of a rental crisis," he said. "With Perth's vacancy rate at 1.3%, it's no surprise that rental listings continue to decline. Additionally, a number of our regional members are reporting vacancy rates close to zero, so the impact is felt across the country. the whole state. "
The number of days to rent a property also decreased significantly to 19 days. This is the fastest time to market rental properties since June 2013.
While median rents have remained stable over the month at $ 360 per week, some suburbs are already seeing increases, including Quinns Rock, North Perth, Dianella and Como. Collins said this makes it crucial for the state government to encourage more investment in the property to accommodate returning expats and existing tenants.
"We may run out of properties next year unless something is done to get investors to come back and encourage first-time home buying in established areas ", did he declare.
Collins recently called on the state government's decision to extend the ban on rent increases and the moratorium on evictions, saying it will create problems not only for landlords but also for tenants.
"If the current ban on increasing rents is lifted in March 2021, it will be reasonable to assume that landlords will have to raise rents significantly to match the market," he said. This will mean tenants won't have the option of raising their rent, in small, manageable increases, but will likely face a sharp price correction. "
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