Perth’s rental vacancy rate rose to 2.5 per cent in March 2025. This was 0.2 percentage points higher than the 2.3 per cent recorded in February.
The last time the vacancy rate was 2.5 per cent was September 2019.
REIWA President Suzanne Brown said while the Institute considered a balanced market to have a vacancy rate between 2.5 and 3.5 per cent, reaching this milestone did not mean the challenges of the past few years would suddenly disappear.
“WA is still recording strong population growth, although not as strong as previous years, and the estimated number of rentals remains about 5 per cent below the peak recorded in February 2021,” she said.
“These factors are maintaining pressure on the rental market as a whole. There will still be some increases in Perth rent prices in the months ahead and challenges finding rental properties, depending on where you are looking.”
Ms Brown said the vacancy rate reaching 2.5 per cent highlighted the significant changes seen in the rental market over the past 12 months.
“A year ago, the vacancy rate was 0.4 per cent and 95.2 per cent of Perth suburbs* had recorded an increase in their median weekly house rent price. 40 per cent of suburbs recorded growth in excess of 20 per cent.
“A year later, 79.7 per cent of suburbs have seen their median house rent price increase. And the rate of price growth has slowed significantly in many suburbs.
“We also have seen a strong increase in rental supply, particularly in outerlying areas, such as Baldivis, Eglinton, Alkimos, Brabham and Yanchep, where investors have purchased house and land packages.”
Ms Brown said it was important to remember the vacancy rate was for the whole of Perth and talk of a balanced market did not mean conditions would be the same across the metropolitan area.
“Broadly speaking, it means an easing of rent price growth and, in some suburbs, more rental opportunities and negotiating power for tenants than they have had in the past few years,” she said.
“However, conditions vary significantly from suburb to suburb and the increased opportunities and negotiating power may not necessarily be in areas that tenants want to live.
“There are some suburbs, such as those closer to the CBD or key lifestyle attractions, where competition for rental properties remains high and the vacancy rate is under 1 per cent. In these areas, property managers are still seeing large numbers at home opens and receiving multiple applications.
“Demand is often lower, and the vacancy rate higher, in suburbs further from the CBD, particularly where a lot of investor-owned new builds have come to the market and supply can outweigh demand.
“In some of these suburbs the vacancy rate can be over 3 per cent. Our members report there are fewer people at home opens and homes can take longer to rent, with some investors having to lower their asking price to secure a tenant.
“I encourage investment property owners and tenants to speak to local REIWA property managers about the conditions in their area.”
