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.
Perth’s rental market has run on tight but steady supply for the past couple of years, with REIWA data showing roughly 2,000 to 2,400 properties available for rent in any given week.
That floor is now giving way, with just 1,909 properties available for rent in the week to 27 September, down from 2,047 four weeks earlier and 2,064 a year ago. Across September, rental listings averaged 1,984 a week, 6.8% lower than August, and 7.1% lower than September 2025 (REIWA).
Vacancy tells the same story. REIWA’s vacancy rate fell to 1.9% in August, well below the 2.5% to 3.5% range considered balanced. Rents paused this month, with the median dwelling rent easing 0.7% to $725 per week, but it remains 6.6% higher than a year ago. Houses sit at $750 per week and units at $700 (REIWA).
The sales market is moving the other way. There were 7,804 properties listed for sale last week, compared with 2,841 a year ago, while sales are running about 25% below last year (REIWA). Cotality recorded a 0.8% fall in Perth dwelling values in August and 3.2% over the quarter, but annual growth of 15.6% is still the strongest of any capital city.
So why is rental supply falling while sales stock rises?
Fewer investors have been buying since the Federal Budget changes to negative gearing and Capital Gains Tax, so fewer properties are being added to the rental pool. At the same time, ABS data shows WA’s population grew 2.2%, adding 65,465 people, the fastest growth in the nation. The shortage is sharpest close to the CBD, where rental houses are hard to find, higher density apartments aside.
What last week’s rate rise means
The Reserve Bank lifted the cash rate by 0.25% to 4.60% last Tuesday. It is the fourth rise this year and the highest cash rate since 2011 (RBA). Repayments will go up again, and Canstar estimates borrowing power for an average wage earner falls by about $11,200.
In speaking with our Finance Team amidst the rate rise, Department Manager Caylum Merrick offered a great insight that stuck with me. He said, “interest rate rises will cost you more, but getting your loan reviewed doesn’t”.
If you haven’t reviewed your loans in the last 12 months, now might be the perfect time to see if there might be a better loan rate or features available or if restructuring could improve or unlock cash flow.
We expect buyers to take more time in the short term and some investors to keep waiting. That also means even fewer properties flowing into the rental pool, adding to the rental squeeze.
But Perth is in a better position than most to absorb it. Buyers now have more choice and more time to negotiate than at any point in the past two years. The fundamentals have not changed: strong population growth, vacancy below balance, and new housing still falling short of demand. For investors who can secure finance, the combination of more stock to choose from and a tight rental market is not something we have seen for some time.
The next RBA meeting is on November 3 and some banks are tipping another rise. So now is the time to review your loan, check your borrowing capacity and have your numbers clear before you act.
