As we step into the final quarter of 2024, the Perth rental market continues to demonstrate stability. September saw no significant shifts in rental prices, providing some much-needed consistency in a landscape that has experienced notable fluctuations over the past few years.
Rental Prices Hold Steady
In September, the median weekly rent for dwellings across Perth remained unchanged at $650 per week. This marks a substantial year-on-year increase of 12.1%, signalling the sustained strength of the rental market over the past 12 months. Houses in particular followed this trend, with the median weekly rent holding steady at $650, reflecting an 8.3% increase compared to the same time last year.
Units, too, saw no change in price, with the median weekly rent staying at $600—a significant 12.1% rise year-on-year.
Adjustments in Rent Prices Reflect Market Correction
According to market experts, this current phase signals more of a correction than a downturn. Cath Hart, a prominent figure in Perth’s property scene, noted that some rental homes are coming back to the market at lower prices, but this is primarily due to adjustments from tenants who had previously secured properties by offering well above the asking price.
“The high level of competition we saw in the past few years has eased, and the market has reached an affordability ceiling,” said Ms. Hart. “Property owners can no longer expect tenants to offer significantly over the asking price and it’s important that they work with their property manager to set a rent price that reflects the current market dynamics.”
Suburb Standouts in September
Several suburbs across Perth experienced notable growth in their median weekly dwelling rents during September:
- Belmont saw the largest increase, with rents climbing 8.3% to $650 per week.
- Waikiki experienced a 4.1% rise, bringing rents up to $573 per week.
- Victoria Park followed suit, with rents increasing by 4.1% to $640 per week.
- Willeton saw a 4% rise, pushing weekly rents to $780.
- West Perth rounded out the list with a 3.2% increase, reaching $650 per week.
These suburbs are seeing growth as renters seek a balance between affordability and accessibility, with a range of amenities driving demand in these areas.
Rental Listings Show a Tight but Moderating Market
At the end of September, there were 2,049 properties available for rent on REIWA’s website, marking a 6.5% drop from August but a notable 22% increase year-on-year. The availability of more listings compared to the previous year is a welcome development for prospective tenants, indicating that while the market remains tight, supply is improving.
Ms. Hart added, “New rental listings in September were almost on par with new leases, which is why we haven’t seen this figure increase, despite the change in the vacancy rate. While supply is increasing and the market is moderating, it remains competitive.”
Leasing Times Speed Up
The median leasing time in Perth dropped to 16 days in September, three days faster than in August, although two days slower than the same period last year. This slight uptick in leasing times points to increased activity in the market as tenants seek properties more quickly.
Some of the suburbs with the fastest leasing times in September were:
- Morley with homes leasing in a median of 11 days.
- Joondalup, Nollamara and Spearwood, where homes were leased in just 12 days.
- Wembley, Ellenbrook and Mandurah, where leasing times averaged 13 days.
- Rivervale, Balga and Belmont, where properties took 14 days to lease.
These fast-moving markets are indicative of high demand and limited supply, making it important for tenants to be quick in securing their ideal rental property.
Looking Ahead
As we approach the end of 2024, Perth’s rental market shows signs of levelling out. While the extreme competition that characterised the past few years has eased, the market remains tight, with prices stabilising and leasing times shortening. For both tenants and landlords, the focus now is on navigating this period of moderation with careful guidance from property managers to ensure fair pricing that reflects current conditions.
The overall outlook remains positive, with increasing listings year-on-year and more balance returning to the market, providing opportunities for both renters and investors in Perth’s evolving rental landscape.