World Economy

‘Just Like a Recession’

‘Just Like a Recession’‘Just Like a Recession’

Perth is awash with vacant offices, while its stagnant housing market “feels just like a recession”, property experts have warned, NewsNow reported. Property Council of Australia executive director Joe Lenzo said the inner-city office vacancy rate was now about 16% and would be about 20% by year’s end. “Right now it’s a tenant’s market, no question about it,” Lenzo said. “It’s not going to get any better any time soon.” The high vacancy rate has been attributed to large reductions in office requirements by the under-pressure mining sector and affiliated businesses such as engineering and human resources companies. Agents are offering exceptional incentives to get tenants into vacant city offices. Residential rents are also falling. Perth residential vacancy rates have risen to 4.9%, according to the Real Estate Institute of Western Australia, just three years after an emerging rental crisis occurred in Perth where vacancy rates dipped below 0.7%. The number of houses, units and blocks of land for sale in metropolitan Perth has now surpassed 14,000. It feels just like a recession.