Perth Property Quarterly Market Update: April to June 2025

The Perth property market has experienced a shift in the fourth quarter of the 2024/2025 financial year, as a response to changes in supply and demand dynamics.

Given that the rental market boasts some of the highest rental values, property investors continue to view the Perth real estate market as an attractive investment opportunity. However, market shifts render it necessary to make informed investment decisions.

In this quarterly update, we will provide you with everything you need to know about the Perth property market from April to June 2025, covering rental rates and yields, rental demand, and median rents in different suburbs.

Rental Rates and Yield in Perth Show Steady Growth

Cotality’s quarterly rental review report confirms that the Perth market’s growth has eased this quarter, given that it has reached an affordability ceiling.

The current median rent for houses is $680 per week, and the median rent for units is $650 per week. As for the current gross rental yield, it is 4.29%, which is four basis points lower than it was a year ago.

Over the past 12 months, Perth has taken a backseat to other Australian capital cities, with an annual rent increase rate of 4.9%. In turn, Darwin leads other capital cities (with an increase rate of 6.2%), followed by Hobart’s 5.3%, Perth’s 4.9%, and Adelaide’s 4.7%.

Moving on to vacancy rates, Perth’s vacancy rate has remained low (compared to other cities and the national vacancy rate of 1.6%) over the past 12 months but has slightly increased from 1.0% to 1.3%.

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 low. It also keeps investors in an advantageous position over tenants and rent growth steady, as the demand for rental properties in Perth remains strong.

Perth’s gross yields have barely changed over the past 12 months, going from 4.4% to 4.3%. This is still above the national gross yield, which has remained almost steady for 31 consecutive months, at about 3.7%.

These insights suggest that the property market in Perth is holding up quite well, with a slower increase in rents and a slight increase in vacancy rates. As REIWA President Suzanne Brown puts it, “the overall trend is still upwards, but a significant change over the past 12 months has been the rate of growth.” 

A Potential Balanced Market for the First Time in Years

According to Cotality, Perth’s median rents have not significantly changed over the quarter because of an increase in supply and a slight decrease in demand. These patterns indicate that the market maintains its stabilising trend.

Despite home value growing at a lower rate than before, Perth’s rent prices are the second highest nationally (after Sydney), albeit a distant second. To illustrate, Perth recorded a quarterly increase in home values for both houses and units of 1.1% and 1.4%, respectively.

On the ground, attendance to rental viewings has dropped over the quarter, and properties are taking longer to lease, especially where the asking rent is above the median rental price.

All of these trends suggest that the Perth property market continues to balance supply and demand ratios.

Since rent values are still high compared to most of Australia’s capital cities, it follows that the rental market is not oversaturated in a way that causes rents to drop. Instead, it is growing and is expected to grow more for both houses and units at a slower pace than in the past years.

Median Rents: The Highest Performing Suburbs and the Most Affordable Suburbs

The Perth property market has shown a significant change in the rate of growth if you consider the top-performing and the most affordable suburbs for both houses and units. The growth rate has eased due to the increase in supply and a slight decrease in demand.

Nonetheless, Ms. Brown says, “While we are seeing an easing of rent price growth in general and more supply, conditions vary significantly from suburb to suburb.” For example, it’s stronger close to the city and weaker in outer-lying suburbs.

She says, “The top 10 suburbs for houses and units for rental yields still offer strong yields, with yields between 5 – 8 per cent generally considered to be very good returns.” Accordingly, it is smart to target those suburbs, which are listed below.

Across the greater Perth region, the suburb with the top annual price growth for houses is Dalkeith (at 7.6%), whose median rental price is $1,452 per week and median house price is $3,480,740, followed by Swanbourne, Cottesloe, City Beach, and Mount Claremont.

Mandurah is the most affordable suburb for house rentals, with a median rent of $543 per week and a median value of $573,104. The annual price growth rate for Mandurah is 5.4%. Then comes Medina, Calista, Coodanup, and Pinjarra.

For unit rentals, Swanbourne is the top suburb for price growth in Perth with a median rent of $952 per week, a median value of $1,036,586, and an annual price growth rate of 9.8%. No other units have made it to the list of the most expensive suburbs to rent in Perth.

As for the most affordable Perth suburbs for unit rentals, they are Orelia with a median rent of $461 per week, a median value of $334,903, and an annual price growth rate of 2.2%. It is followed by Shoalwater, Mandurah, Rockingham, and Armadale.

Get a Free Rental Appraisal!

With the data showing more vacancies, particularly for rentals above the median, it is more important than ever to list your investment property for the right rental price.

Hence, it is vital to get your property assessed by experts to determine the optimal rate for your property’s location, size, and condition.

Maximise your investment property potential with your free rental appraisal today!