Rental Prices Rise in January as Supply Remains Tight

After a year of relatively modest growth, Perth’s rental market recorded a noticeable lift in January, reflecting ongoing pressure across both the leasing and sales sectors.

The median dwelling rent increased to $720 per week, up 2.9 per cent over the month and 7.5 per cent higher than the same time last year.

Breaking this down further:

• Houses reached a median weekly rent of $725, rising 3.6 per cent for the month and 6.6 per cent year-on-year.

• Units rose to a median of $690 per week, up 1.5 per cent over the month and 6.2 per cent annually.

While seasonal shifts in January are common — particularly as families secure homes before the new school year — the data also highlights the ongoing imbalance between supply and demand.

Rental Supply Still Recovering

WA’s rental market has been under pressure for several years following a significant reduction in investor-owned stock after the end of COVID-era rental protections. Modelling suggests nearly 20,000 rental properties were removed from the market during that period.

Although rental conditions have shown some improvement over the past 18 months, driven largely by increased supply, vacancy rates remain tight and demand continues to be supported by strong population growth and constrained housing construction.

At the end of January, there were 2,087 properties listed for rent across Perth — higher than December, but slightly below the same time last year. Homes leased in a median of 17 days, indicating continued strong competition.

Suburbs recording notable rent increases in January included Bayswater, Scarborough, Southern River and High Wycombe for houses, while Maylands, East Perth and Scarborough led growth in the unit market.

Sales Market Also Reaches New Highs

The sales market continues to show upward momentum.

Perth’s median house sale price reached a new record of $855,000 in January, up 1.8 per cent over the month and 13.2 per cent higher than a year ago. The median unit sale price also climbed to a record $600,000, rising 1.7 per cent for the month and 17.6 per cent annually.

Despite a recent interest rate increase, market conditions remain driven by low supply and steady demand. Active listings rose to 2,444 in January — higher than December’s record low — but still significantly below levels seen a year ago.

Homes continue to sell quickly, with houses spending a median of nine days on the market and units eight days, both considerably faster than this time last year.

What This Means for Owners and Tenants

The January figures reinforce that Perth’s housing market — across both rental and sales sectors — remains constrained by limited supply.

For property owners, strong leasing demand and firm sale prices may present opportunities to review strategy or equity positions. For tenants and buyers, competition remains elevated, making preparation and informed decision-making more important than ever.

As we move further into the year, market activity will likely remain sensitive to supply levels, new listings and broader economic conditions — but for now, demand continues to outweigh available stock.