Perth Hits New Rental Record – But Growth May Be Slowing

Perth renters are now paying the second-highest rents in the country, tied with Canberra at a median of $700 per week for houses. According to the latest Domain Rent Report, this is the first time Perth has reached this ranking, with only Sydney coming in higher at $780 per week. This milestone reflects the ongoing pressure in Perth’s rental market, with low vacancy rates and high demand continuing to drive up prices.

In the June quarter, Perth experienced the largest rent increase of any capital city, up 0.7% since March. However, that’s a notable slowdown from earlier in the year, when the previous quarter’s rise was five times greater. This softer growth may signal a turning point in tenant affordability, as many renters are reaching the upper limits of what they can reasonably pay.

The shift is even more visible in Perth’s unit market. Unit rents have surged to a median of $620 per week, marking a 3.3% rise for the quarter and a staggering 12.7% year-on-year. That’s the steepest annual growth across all capital cities. Perth’s unit rents are now the second-highest in Australia, tied with Brisbane and just behind Sydney. The strong rise is being driven by a pivot towards smaller and more affordable housing options.

The market remains tight, with a vacancy rate of just 0.5% – the lowest June figure since 2023. Domain’s research suggests that until this number starts to rise, significant drops in rent are unlikely. Migration to WA has added further pressure, with more people calling Perth home in the post-pandemic years. However, population growth is starting to slow, which may help ease some demand over the longer term.

While it’s still very much a landlord’s market, rental growth is starting to slow as tenants hit their affordability ceiling. Many are downsizing, choosing units, or opting to house share to manage costs. For the market to rebalance, experts agree that increasing supply is critical – whether through more construction or helping renters transition into home ownership. A vacancy rate between 2% and 3% is considered healthy, and that’s the level Perth will need to aim for to bring rents back within reach.

If you'd like to talk about how this will affect your property plans, don't hesitate to contact the team at Bellcourt on 08 6141 7848.