The rental sector is officially a landlord’s market after the vacancy rate this year fell below 3 per cent for the first time in six years.
WA’s most respected property analyst, Gavin Hegney, said the rental vacancy rate was down two-thirds from 7.3 per cent in mid-2017 to 2.7 per cent.
Mr Hegney said if credit conditions continued — leaving many renters unable to buy or build their own properties — there would be an "acute rental shortage” by the end of the year.
Although it is tough news for renters, Mr Hegney said it was good news for owners, with a tightening in the rental market usually preceding a rise in house prices.
Real estate agents claim they have started receiving multiple offers on rental properties this year.
Lisa Joyce, from Joyce Properties, said some tenants were offering services such as gardening or maintenance to make their application more attractive to landlords.
She estimated modest rental price growth of about 2.5 per cent this year, ending a period of two-year fixed-price contracts.
"Anything below 3 per cent is technically a landlord’s market,” she said.
The Property Exchange in the western suburbs has had a few instances this year where applicants offered $10 to $20 a week above the asking price.
The Property Exchange’s Kaylee Ferguson said prices were still $100 a week lower than during the boom.
She believed the sector was enjoying a happy medium.
Holly Mearns-Mennell, from Davey Real Estate Coastal, agreed there was not a lot of price pressure yet, but the tightened market had stopped offers of up to $100 a week below the asking price.
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Wednesday, 22 May 2019