What’s driving Perth’s Rental Market in 2025?

A market finding its balance

After years of ultra-tight conditions, Perth’s rental market is starting to shift. Vacancy rates rose to around 2% in January 2025, the highest since mid-2020, while rents remain steady at roughly $680 a week for houses and $650 for units (REIWA). For landlords, this is an opportunity. Instead of scrambling to fill homes, you can take a more strategic approach: retain good tenants, set competitive rents, and protect long-term returns. At Yard, we’re seeing tenants in East Fremantle take more time to compare listings, while in Fremantle and the western suburbs, lifestyle continues to attract renters willing to pay a premium.

What’s happening right now:

• Vacancy: ~2% (January 2025)

• Median rents: Houses $680 pw; Units $650 pw

• High-demand areas: Baldivis, Alkimos, Perth CBD, Scarborough, Mount Lawley

Investors remain active. Despite more supply coming on, Perth is still seen as offering strong yields and capital growth. On the tenant side, behaviour is changing: instead of rushing, people are weighing up value, looking for longer leases, and often sharing costs with housemates.

What’s driving the shift:

• Population growth: WA still leads the country, with strong job opportunities drawing people in.

• New supply: Outer-suburb builds are easing pressure, though vacancy is still below the balanced range (2.5–3.5%).

• Lifestyle pull: Demand is holding in suburbs like Fremantle and West Leederville, where walkability and community add value.

• Tenant focus on quality: Homes with character or strong fit-outs continue to lease well, even at slightly higher rents.

Looking ahead

We expect moderate rent growth through 2025; houses edging closer to $690 pw, units holding around $650. Vacancy rates could rise slightly towards a more balanced market mid-year. Lifestyle hubs (Fremantle, Como, West Leederville) and growth corridors (Alkimos, Baldivis) should continue to perform strongly.

Yard tips for landlords:

1. Price rentals competitively—over-pricing risks longer vacancies.

2. Focus on lifestyle and presentation; small upgrades go a long way.

3. Think long-term—secure quality tenants with fair leases and incentives.

The takeaway

Perth’s rental market is finding a healthier middle ground. Rents are steady, demand is still strong, but tenants are more selective. Landlords who adapt, by offering quality, fair value, and smart leasing strategies, will continue to see stable, long-term returns.

If you’d like to know how these shifts affect your property, I’d be happy to chat or provide a rental appraisal. contact me on jordan@yardproperty.com or on 0434 093 173.