Sunday marks the first time property investors can increase rent prices in 12 months.
The Real Estate Institute of Western Australia (REIWA) has said in a press release the end of the rental moratorium is a necessary step for the WA rental market.
With the emergency period for the Residential Tenancies (COVID-19 Response) Act 2020 ending on Sunday 28 March 2021, the REIWA believes it is a necessary step to help mend Western Australia’s rental shortage.
REIWA president Damian Collins said the September 2020 decision to extend the moratorium on evictions had a debilitating effect on the state’s rental market.
“Since the announcement in September, the Perth vacancy rate has dropped below one per cent – the lowest level we’ve seen in 40 years. There is very little available rental stock on the market and those people who are actively looking for somewhere to rent are finding it very difficult to secure a place to live,” REIWA President Damian Collins said.
“Thankfully, once the moratorium ends investors will have more incentive to buy property in WA. This should increase the number of properties available to rent and help create a more balanced market.”
Data from reiwa.com shows the Perth median weekly rent price has increased from $360 in February 2020 to $400 in February 2021.
Sunday marks the first time property investors will be able to increase rent prices in 12 months.
“Whilst it is inevitable prices will rise, WA tenants are still paying a lot less overall than their counterparts around the country. In fact, earlier this month the Real Estate Institute of Australia released their December 2020 quarter Housing Affordability Report which revealed WA remained the most affordable place to rent in the country,” Mr Collins added.
The largest single-dwelling sales of the calendar year.