As at 2 April 2020, our vacancy rate is at 1.12%. We’re confident that we’re heading into the next 3 months with excellent occupancy levels and that many of our landlords’ investments are secure. The region vacancy rate for the March quarter is yet to be released by REIWA – we expect this to be consistent with last quarter’s 2.4 per cent*.
Enquiries have slowed however we are still receiving them, and we are successfully leasing properties (just a little bit differently). Majority of our enquiries are renters whose leases have expired and are looking to move out of their current property. It is expected that expats and West Australians living interstate will gradually return, and we may see an increase in this market seeking accommodation over the coming weeks.
Our recorded dip in enquiry is consistent with a change in sentiment across Australia due to people’s individual uncertainties and circumstances. According to Realestate.com, national search activity for rentals has dropped quite rapidly in the last couple of weeks and is lower when compared to this time 12 months ago.
General sentiment is that a lot of tenants are adapting a ‘wait and see approach’. It’s expected as things do start to settle over the coming weeks and we grow to feel more comfortable with the new normal, that things will start to move, potentially at a reduced rate.
We’ve experienced an increase in enquiry from new landlords looking to come to market; this includes vendors taking their properties off the sales market, and owners who have previously leased their properties as short stays and are seeking stability by securing long-term leases.
Given the dip in demand and predicted increase of supply in the marketplace, our focus is on retaining tenants and working with them through their individual challenges so that they’re able to meet their obligations and continue on with their tenancy.
It is positive that the Federal Government’s generous JobKeeper allowance will provide some tenants who do find themselves out of work with a significant subsidy that will enable them to sustain themselves financially throughout this period.
For vacant on-market properties, it’s important we stay proactive in our approach and adapt new techniques to ensure we continue to attract good quality tenants, like we’ve always done. This includes applying virtual tour technologies, online pre-approval processes and holding private inspections. It’s a time to focus on finding opportunities and staying agile so we continue to achieve the best possible result.
The next 6 months is really about staying level-headed and focused on acting proactively in the way we lease and manage properties so what we’re able to minimise any potential impacts to our clients’ portfolios.
If you’re looking to lease a property that is not yet managed by Realmark, speak to our experienced leasing team today.
*REIWA Perth rental vacancy rate Dec quarter 2019
*REIWA release: Perth property market showed positive signs in March