Perth Property Market Quarterly Update: July to September 2025
Despite broader market challenges nationally, Perth’s property market has shown remarkable resilience in the first quarter of FY2025/2026, underpinned by strong demand and limited supply.
With consistently high rental values, the city continues to attract property investors seeking solid investment opportunities. Yet, ongoing market shifts make it essential to stay informed and make careful, data-driven investment decisions.
This quarterly update provides a comprehensive overview of the Perth property market from July to September 2025, including rental rates and yields, rental demand, and median rents across key suburbs.
Rental Rates and Yield in Perth Continue to Show Steady Growth
The recent Cotality Report confirms that the Perth market is experiencing some tightening in rental yields, which is in line with a broader national trend across both capital and regional cities. Despite this, demand remains strong.
In Perth, the current median rent for houses is $692 per week for houses and $650 per week for units.
As for the gross rental yield in September, it stood at 4.2%, with houses at 4.0% and units at 5.4%.
When compared to national movements, Perth and Brisbane recorded the third-strongest annual increases in rent, both at 5.6%. Darwin led with 7.6%, followed by Hobart at 6.2%. These figures represent a notable rebound for both cities, which have seen relatively weak rental growth in recent years.
On the other hand, Melbourne recorded the weakest annual growth at 1.4%, followed by Canberra at 2.8%.
Moving on to vacancy rates, Perth’s vacancy rate has remained low over the past 12 months, even declining from 1.4% to 1.1%, and is not expected to rise significantly in the near term. Nationally, vacancy rates reached the record low of 1.47% in September, which is less than half the pre-COVID decade average of 3.3%.
To put it into perspective, Reiwa states, “a vacancy rate between 2.5 and 3.5 per cent represents a balanced market,” which renders Perth’s rental market’s vacancy rates very low.
These low vacancy rates keep investors in an advantageous position over tenants and uphold rent growth steady, as the demand for rental properties in Perth remains strong, which is driving rents up gradually.
Perth’s gross yields are the same as they were 12 months ago at 4.2%, after their slight growth in the previous quarter. This is still above the national gross yield, which has remained largely unchanged for over two years, at about 3.7%.
Overall, these insights suggest that the Perth property market is performing strongly relative to national benchmarks, with consistent rent growth and declining vacancy rates reinforcing its resilience.
A Market Potentially Following a Stabilising Trend
According to Cotality, Perth was the second most affected among capital cities by the recent tightening in gross rental yields, which declined 13 basis points since February, from 4.29% to 4.16%. These figures suggest the market is following a stabilising trend.
Nationally, dwelling yields are at their lowest since November of last year.
Looking at Perth, its quarterly increase in home values is 0.9% for all dwellings: 0.9% for houses and 0.8% for units. While these rates are below those of Darwin and Brisbane, they remain reasonable in comparison with other capital cities.
The report also highlights that “over the four weeks ending September 28th, the national number of rental listings was tracking roughly 25% below the previous five-year average for this time of year, with ‘for rent’ unit listings in particularly short supply.”
This limited supply is notable, particularly given that investors have accounted for a significant portion of home lending over the past two years.
For investors, the combination of strong demand and constrained supply is driving down vacancy rates and reducing the time properties remain on the market. Collectively, these trends indicate that Perth’s rental market is experiencing a gradual but steady rebound in growth.
Median Rents: The Highest Performing Suburbs and the Most Affordable Suburbs
The Perth property market has experienced strong demand in inner-city suburbs this quarter.
REIWA President Suzanne Brown explains this trend. She says, “WA’s economy remains strong. The job market is steady, and people continue to want to live and work in areas close to the CBD and key lifestyle attractions. Living close to the convenience of the city, and reduced travel times, remain a factor for buyers and renters alike.”
Indeed, the suburbs with the top annual growth for houses are in inner Perth. The number one suburb is Swanbourne (at 13.2%), whose median rental price is $1,422 per week and median house price is $2,658,526, followed by Nedlands, Dalkeith, City Beach, and Shenton Park.
Mandurah is the most affordable suburb for house rentals, with a median rent of $544 per week and a median value of $597,061. The annual price growth is 3.6%. Mandurah is followed by Medina, Coodanup, Calista, and Pinjarra.
For unit rentals, Swanbourne again ranks highest as the top suburb for price growth in Perth with a median rent of $999 per week, a median value of $1,086,578, and an annual price growth of 9.0%. No other suburbs appear in the top 30 expensive Perth suburbs for units.
As for the most affordable Perth suburb for unit rentals, it is Orelia, with a median rent of $469 per week, a median value of $356,805, and an annual growth rate of 1.1%. It is followed by Dudley Park, Shoalwater, Mandurah, and Rockingham in that order.
Need a reliable online rental appraisal for your Perth property?
With the slow upward trend in the Perth property market, listing your investment property for potential tenants could be a strategic move.
However, it is vital to get your property assessed by experts to determine the optimal rate for your property’s location, size, and condition, given that the supply and demand ratio is constantly changing.
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