Perth’s vacancy rate reaches 2.5 per cent

After years of record-tight conditions, Perth’s rental market is beginning to show early signs of easing. In March 2025, the rental vacancy rate climbed to 2.5 per cent — up from 2.3 per cent in February, and the highest figure recorded since September 2019. While this marks a significant shift from the low of 0.4 per cent seen just a year ago, experts caution that challenges in the market are far from over.

REIWA President Suzanne Brown noted that a vacancy rate between 2.5 and 3.5 per cent is considered a balanced rental market. However, she stressed that reaching this milestone doesn’t mean the tight conditions of recent years will immediately vanish. Population growth, though not as rapid as in previous years, continues to put pressure on the system, while rental supply remains about five per cent below the February 2021 peak.

Rent price growth is still occurring, albeit at a slower pace than before. A year ago, 95.2 per cent of Perth suburbs saw an increase in median weekly house rent, with 40 per cent recording growth above 20 per cent. This year, that figure has eased to 79.7 per cent of suburbs experiencing rent increases, with the rate of growth tapering off in many areas. Increased supply, especially in outer suburbs like Baldivis, Eglinton, Alkimos, Brabham and Yanchep, has helped moderate the pace.

Despite the overall shift, rental conditions still vary widely depending on location. Inner-city suburbs and those near lifestyle amenities continue to experience high demand and low vacancy rates — in some cases under one per cent. These areas remain highly competitive, with multiple applications per property and strong turnout at home opens.

Conversely, outer suburbs with a surge of investor-owned new builds are seeing a different trend. In these areas, vacancy rates can exceed three per cent, leading to fewer people at inspections and longer leasing times. Some landlords have had to reduce asking rents to attract tenants. REIWA advises both tenants and property owners to consult with local property managers to better understand the conditions in their specific suburbs.

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.