CBA has released a chart pack showing how tight rental conditions are squeezing Perth tenants.
Western Australia has experienced the strongest population growth over the past year, expanding by a nation-leading 3.1%:
This extreme population growth has driven Perth’s rental vacancy rate to only 0.5%, the lowest in the nation:
Strong demand combined with tight supply drove Perth asking rents up by 10.9% in the year to September, the highest rate of growth in the nation:
The only saving grace for tenants is that Perth rents are playing ‘catch-up’ after falling sharply between 2015 and 2021:
As shown above, Perth CPI rents have experienced the lowest capital growth since June 2012, despite experiencing explosive growth since the end of the pandemic.
Looking ahead, Perth’s rental market is likely to remain extremely tight owing to population demand easily outstripping constipated supply:
Perth’s tenants are, therefore, another victim of the federal government’s high immigration policy, which is driving population into the state.
This surge in immigration has also helped to push up home prices, making it harder for first-time buyers to purchase a home.
