Perth’s rental market has tightened significantly in recent years, with rising rents now placing the city among the most expensive in Australia for renters.
According to Cotality’s latest rental data, the median weekly rent in Perth climbed 5.9% in the 12 months to December to $738, placing Perth second behind Sydney.
What’s driving Perth’s surge in rent prices?
Strong population growth and limited housing supply
More people are moving to Perth, boosting tenant demand, but the delivery of new housing isn’t keeping pace. Vacancy rates have remained consistently low, sitting at just 1.3% in December 2025 according to Cotality. This mismatch between supply and demand continues to push rents higher.
High demand in well‑located suburbs
Areas close to employment, transport and lifestyle hubs are seeing intense competition among renters.
Rental affordability stress
With rents rising faster than wages, households in Victoria were spending 24.2% of their income on rent as at September 2025, up from 23.7% a year earlier. For Perth renters receiving Commonwealth Rent Assistance, the proportion of weekly rent the subsidy covers has shrunk, covering just 18.6% for an average 3-bedroom house compared to 26.2% in 2005.
More investors returning to the market
Perth’s rising property market has drawn increased interest from investors. On one hand, this helps add more stock to the rental pool, but on the other, it increases buyer competition, further fuelling price pressure.
What this means for investors
For property investors, Perth’s rental dynamics offer both rental yield and capital growth opportunities.
- Properties in high-demand areas are likely to lease quickly, minimising vacancy periods and supporting an ongoing income.
- Sustained rental growth supports strong yields, especially for apartments and smaller homes that appeal to a broader tenant pool.
- Perth is a rising market, with property prices expected to continue growing in 2026.
However, you need to approach property selection strategically. In a tight market like Perth, having access to off‑market and pre‑market opportunities can give you a competitive edge.
How Resolve Property Solutions helps investors
Investor competition in Perth is increasing, and quality properties at low to mid-range price points are becoming harder to find. A buyer’s agent with expert knowledge of the market can help you identify properties that align with your investment goals and budget.
At Resolve Property Solutions, we take a research‑driven approach to identify the locations and property types that are primed to deliver both strong rental yields and long‑term capital growth.
We’ll also present off‑market opportunities where available, and can assist with conducting due diligence, inspections and price negotiations.
Looking to buy an investment property in Perth? We can help. To get started, book a free discovery call and we will connect you with one of our expert Perth buyer’s agents.
