Perth’s rental vacancy rate rose to 2.5% in March, up from 2.3% in February, according to the Real Estate Institute of Western Australia (REIWA).
This is the first time the city has reached this threshold since September 2019, signalling a broader shift in rental market dynamics.
While a vacancy rate between 2.5% and 3.5% is typically considered a balanced rental market, REIWA president Suzanne Brown (pictured) cautioned that this does not mean the intense challenges of recent years are over.
“WA is still recording strong population growth, although not as strong as previous years, and the estimated number of rentals remains about 5% below the peak recorded in February 2021,” Brown said.
“These factors are maintaining pressure on the rental market as a whole. There will still be some increases in Perth rent prices in the months ahead and challenges finding rental properties, depending on where you are looking.”
REIWA, which recently forecasted a 10% rise in house prices in 2025, highlighted how much the rental market has shifted over the past 12 months, with both vacancy and rent growth patterns undergoing a marked transformation.
“A year ago, the vacancy rate was 0.4% and 95.2% of Perth suburbs had recorded an increase in their median weekly house rent price,” Brown said. “Forty per cent of suburbs recorded growth in excess of 20%.
“A year later, 79.7% of suburbs have seen their median house rent price increase. And the rate of price growth has slowed significantly in many suburbs.”
One of the key drivers of improved availability has been a rise in rental listings in Perth’s outer suburbs.
“We also have seen a strong increase in rental supply, particularly in outerlying areas, such as Baldivis, Eglinton, Alkimos, Brabham and Yanchep, where investors have purchased house and land packages,” Brown said.
While Perth’s overall vacancy rate suggests greater balance, Brown stressed that suburb-level variation remains significant.
“Broadly speaking, it means an easing of rent price growth and, in some suburbs, more rental opportunities and negotiating power for tenants than they have had in the past few years,” she said.
“However, conditions vary significantly from suburb to suburb and the increased opportunities and negotiating power may not necessarily be in areas that tenants want to live.”
In CBD-adjacent and lifestyle-rich suburbs, rental demand remains strong.
“There are some suburbs, such as those closer to the CBD or key lifestyle attractions, where competition for rental properties remains high and the vacancy rate is under 1%. In these areas, property managers are still seeing large numbers at home opens and receiving multiple applications.”
On the other hand, outer areas with recent investor-driven development are experiencing softer demand.
“Demand is often lower, and the vacancy rate higher, in suburbs further from the CBD, particularly where a lot of investor-owned new builds have come to the market and supply can outweigh demand,” Brown said.
“In some of these suburbs the vacancy rate can be over 3%. Our members report there are fewer people at home opens and homes can take longer to rent, with some investors having to lower their asking price to secure a tenant.”
