Each month our Property Acquisition, Advisory and Research team wrap up the latest property data. Department Manager Robin Ram also shares his insights on what the team are seeing on the ground.
For the past couple of years, the number of rental properties available across Perth has held within a fairly narrow band, roughly 2,000 to 2,400 in most weeks. It was tight, but it was stable. Over the last few months, that plateau has started to show signs of a decrease.
This week there were 2,047 properties available for rent, down from 2,164 four weeks ago and 2,233 the same week last year, according to REIWA. On REIWA’s weekly averages, rental listings fell 6.46% over the month and 6.15% year on year. Vacancy is holding at 2.2%, still sitting under the 2.5% to 3.5% band REIWA considers balanced.
Many suburbs closer to CBD now have very limited rental properties available, with Greenwood as an example, showing a vacancy rate of 0.26% according to SQM. Supply is easing while demand is not, with ABS data showing WA population growth the strongest in the nation at 2.2%, adding more than 65,000 people over the year.
The ‘why’ matters here. What we are seeing on the ground is fewer investors looking to buy since May’s Federal Budget changes to negative gearing and CGT. Fewer investor purchases means fewer properties flowing into the rental pool to replace stock that leaves it. Cotality’s latest data reported declines in transaction activity. REIWA has flagged the same concern, warning that if supply stays static or declines again, upward pressure on rents and affordability will build, and that any new supply from investors pivoting to new builds is still at least 12 to 18 months away.
The squeeze is sharpest the closer you get to the CBD, where houses in particular are hard to come by. Our own top rental suburbs bear that out, with inner areas like East Perth, Maylands, Scarborough and Como all showing tight availability.
For tenants, the tightening vacancy rate is already being felt. There is less to choose from, and rents are starting to lift again on the back of that lack of supply. The longer view from REIWA tells the story well: median house rent has climbed from around $500 per week in August 2022 to $750 now, up 9.5% over the past year alone, with units at $700, up 7.7%. Median days to rent remain short, which confirms competition has not gone anywhere.
The takeaway for our clients is straightforward. For tenants, be ready to move quickly and expect less room to negotiate at renewal. For investors, Perth’s fundamentals of genuine undersupply and strong population growth remain firmly intact, and a thinning rental pool only sharpens that case. The market may be quieter on investor activity right now, but the setup for those already holding, or willing to buy into it, is as sound as ever.
