Perth Rents Are at Record Highs While Prices Cool: What It Means for Landlords

If you’ve caught the headlines this month, you could be forgiven for thinking the Perth property market has turned. Prices have come off their April peak and sales have slowed right down.

That’s only half the story. The Perth rental market is tighter than at any point this year, with the rental vacancy rate at 1.7% and rents at record highs. Prices and rents are heading in different directions, and that’s the difference between simply riding this period out and getting the most from your investment. Here’s why, and what it means for your property.

The Perth rental market in numbers

REIWA expects Perth rents to finish 2026 up between 5% and 10%. In REIWA’s words, “Rent prices are at record highs and rental affordability is at a record low.”

• Vacancy is 1.7%, down from 2.2% in July and well below the 2.5% to 3.5% REIWA considers balanced. (REIWA)
• Homes lease in a median of two weeks. Good properties are not sitting empty. (REIWA)
• Perth median rent for a house is $750 a week, a record high and up 7.1% since December. It held steady through the September quarter. (REIWA)
• Median unit rent is $700 a week, up 2.9% since December. Units have almost caught up with houses. (REIWA)
• Perth rental yields average 4.0% gross (units 5.2%, houses 3.9%), ahead of the national 3.9%. (Cotality)
• Values are up 10.1% over the year but eased 4.7% in the September quarter. Perth remains the second-strongest capital city, just cooling. (Cotality)

What the Perth rental market means for your investment property

When capital growth slows, rental income has to do more of the heavy lifting. The question shifts from “what’s the market doing?” to “what’s my property doing?”

In a market this tight, the averages set a high bar. If the typical Perth home leases in two weeks, a property that sits empty for five has cost its owner three extra weeks of rent. At today’s median house rent, that’s around $2,250. And if house rents are up 7.1% since December, a lease renewed at last year’s rate is quietly falling behind.

The tricky part is that none of this shows up on your monthly statement. The rent comes in, the bills get paid, and nothing looks wrong. You only see the gap when you hold your property up against the market, and in my experience most owners are never shown that comparison.

What good property management looks like right now

The owners I see doing best have one thing in common: a property manager who is working the property, not just collecting the rent. In practice, that means:

• Knowing the market, not guessing it. Your manager should be able to tell you where your rent sits against comparable homes leasing today.
• Reviewing rent at every opportunity. WA rules allow one rent increase every 12 months, and none of those should slip past unnoticed.
• Managing tenants actively. Thorough selection up front, then regular, detailed inspections and clear expectations, so standards stay high and good tenants stay longer.
• Telling you before you ask. If something changes in the market or at your property, you should hear it from your manager first.

Bedroom count matters too. Across Perth, a two-bedroom house now rents for a median of $650 a week, a three-bedroom for $730 and a four-bedroom for $795. If your rent is well below the figure for your property type, a review is overdue.

That’s the standard our property managers hold themselves to. Our properties lease in an average of 9 days.

Where the Perth market is heading

My read is that the next few months look like more of the same.

On sales, REIWA has pulled back its forecasts. It now expects the median house price to finish 2026 just under $1 million (about 15% up since December) and units around $720,000. Cotality has Perth values 6% below their April peak, with sales over the past three months down 24% on a year ago. REIWA attributes much of this to buyers being “severely impacted by four interest rate rises this year.”

In the Perth rental market, demand remains strong. There are just over 2,000 properties available to rent across Perth, and vacancy has fallen every month since July. When fewer people can buy their first home, more of them keep renting.

If you’re holding for the long term, I wouldn’t lose sleep over a cooler sales market. Perth values are still up 10.1% over the year and our yields are above the national average. It is, though, a very good time to make sure your property’s earning potential is maximised through proactive property management in Perth.

Is your rent keeping up with the Perth rental market?

If you’re not sure where your property sits, we’ll show you. Request a free rental appraisal and we’ll compare your rent against what comparable Perth homes are leasing for today.

Frequently asked questions

Is now a good time to own a rental property in Perth?

Rental demand is strong, with vacancy at 1.7% and rents at record highs. Sales prices have cooled, but long-term holders are still seeing yields above the national average.

How often can I increase rent in Western Australia?

Once every 12 months. A good property manager tracks this so an increase is never missed.

How do I know if my rent is too low?

Ask your property manager for a comparison against similar homes leasing now. If they can’t provide one, that’s worth raising, or request a free rental appraisal from us.