It’s an enormous privilege to have been elected president of REIWA. REIWA has a proud history of advocating for our members and the wider Western Australian community. I’m looking forward to building on that work over the next two years.
There will be plenty to navigate – from housing supply and affordability to changes in market, economic and legislative conditions.
The WA rental market – and conditions for tenants – remain a particular concern for REIWA. As a tenant myself, I have personal experience navigating Perth’s extremely challenging rental market.
I have felt the effects of limited rental supply and extremely low vacancy rates. I know how hard it is to find a new rental property. I was rejected for several properties in my most recent search for a home.
I understand how essential it is to have a healthy supply of rental properties.
Unfortunately, we are seeing increasing challenges to supply and a further tightening of the market. The number of properties for rent in Perth has fallen below 2000 for the first time since March this year.
The Perth vacancy rate dropped below two per cent in August and fell further in September. Properties are renting in a median of two weeks. These statistics highlight the continuing strong demand for rental properties.
And while Perth’s median house and unit rent prices have remained stable for several months, they are still at record highs. We all want renting to become more affordable.
To achieve this, we need to give tenants more choice, which means we need more supply. That requires a legislative environment which supports and encourages investment in rental properties.
We have seen the response to the Federal Government’s changes to taxation policy. Investors continue to sell and fewer investors are buying established homes. And while the reforms are intended to drive investors towards new supply, our colleagues in the building industry say they are not seeing an increase in investor activity.
Even if they were, the current brick shortage will hamper the delivery of new rental homes. Another challenge for all buyers, including investors, has been the four interest rate rises this year and the prospect of more. This greatly reduces borrowing capacity and the people’s ability to buy a home.
WA is also facing further changes to the Residential Tenancies Act 1987, which will make it more difficult to select the most suitable tenant for a rental property and harder to end challenging tenancies. These changes risk discouraging investors.
As a tenant, I ask governments at all levels to carefully consider the potential effects of policy change. Supply is the solution to the issues we are facing, not more regulation.