It's only the third time in 40 years the vacancy rate has dropped below 1%, with rents set to spike as a result. 

Real Estate Institute of Western Australia (REIWA) President Damian Collins said the rate could drop below the lowest ever recorded rate of 0.8% in March 2007. 

“With rental listings in Perth falling 8% to 2,926 over the month, we have certainly hit a rental crisis where tenants looking for a rental will potentially find themselves unable to find a home,” Mr Collins said.

“In addition, the reduced supply is putting upward pressure on rents with property managers on the ground finding increases in rent are occurring on new leases, as prospective tenants are in competition with each other to secure the limited supply.”

Buying a home or looking to refinance? The table below features home loans with some of the lowest variable interest rates on the market for owner occupiers.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Perth typically sees an influx of investors in the Spring selling season which increases housing stock, but this hasn't been the case so far this year.

Mr Collins said if investors weren't encouraged back into the market the situation would only worsen. 

“Western Australia has approximately 17% of properties purchased by investors, whereas we would normally expect to see investors buying 30% or more of the available properties," he said.

"At the same time, we still have investors exiting the market, meaning the supply of rental properties is not sufficient to keep up with demand."

The Western Australian (WA) government recently announced an extension to the moratorium on evictions and rent increases until March 28 2021. 

Mr Collins said the government needed to ensure these provisions were not extended further so investors could feel confident in returning to the market. 

"The government needs to send a clear signal to the market that they have no intention of extending the legislation further if we remain relatively COVID-19 free," he said. 

"Otherwise investors will continue to sit on their hands and make a bad situation even worse.”

At the time of the extension announcement, WA Commerce Minister John Quigley said the extended moratorium was vital for the state's economic recovery. 

"Western Australia is entering a period of economic recovery, however with the threat of COVID-19 and a second wave still real, extending the rent moratorium protects WA renters and landlords, and helps create stability for everyone," Mr Quigley said. 

"For residential tenancies, low vacancy rates for rental properties have, and will continue to force rents to rise, and this together with the current unemployment rate, as well as changes to JobKeeper, means families may find themselves in financial hardship.

"To add difficulties in finding rental accommodation or not being able to afford rent to their worries would be an awful proposition."

WA joined every other state, except Queensland, in extending the moratorium on evictions. 





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