Perth’s Rental Market in 2025 – Is Relief Finally in Sight?

Perth’s rental market has been one of the toughest in the country over the last three years, with record-low vacancy rates and soaring weekly rents leaving many tenants scrambling for options. But as we move deeper into 2025, signs of change are starting to emerge—bringing both relief and opportunity.

Vacancy Rates Easing?

According to REIWA, Perth’s vacancy rate, which dipped as low as 0.6% in 2023, has now edged closer to 1.2%. While still well below a balanced market (3%), it’s a step in the right direction. Developers and investors who sat on the sidelines are slowly re-entering the market, encouraged by rental yields that remain among the highest in Australia.

Government Incentives Kick In

The WA Government’s rental relief initiatives, including tax incentives for landlords and grants for build-to-rent developments, are starting to put more supply into the pipeline. Projects in suburbs like Cockburn, Joondalup, and Midland are showing promise for tenants who have struggled to secure leases.

What Tenants Can Expect

While rents are unlikely to drop significantly, the pace of growth may finally slow. Tenants should start to see more choice in the market by late 2025, particularly in new apartment complexes.

What This Means for Investors

High rental yields (often above 6%) remain a major attraction. With interest rates stabilising, savvy investors are well-placed to benefit from strong rental demand while capitalising on modest price growth.