March 2023 quarter
Perth’s rental market remains firmly locked in favour of landlords. The mismatch of high demand and low supply keeps the vacancy rate close to a historic low, creating challenging conditions for tenants. Units are experiencing an acceleration in rental growth, reaching a record high for the first time since 2013. Investors are yet to be enticed by record-high rents and rising gross rental yields as they tend to react to capital growth prospects. This could change as the RBA pauses rate hikes. Higher levels of investment activity are required to alleviate the current conditions. Perth not only offers investors the second highest-yielding capital city in Australia, but they are also at a record high for Perth.
By Dr Nicola Powell
Chief of Research and Economics
Sourced from Domain