Perth Rentals Enter a New Phase: What 2.7% Vacancy Means for Renters and Investors

Perth’s rental market is finally shifting gears.

Just twelve months ago, vacancy rates hovered at 0.5% to 1% one of the tightest markets in Western Australia’s history. Tenants were facing fierce competition, rental prices surged, and investors enjoyed exceptionally low vacancy risk.

Fast forward to today, and the vacancy rate sits at approximately 2.7%. That may not sound high, but in property management terms, this is almost a return toward equilibrium, a point where supply and demand are more balanced.

So, what does this mean for the market?

For Renters: A Breath of Relief

• More choice: With higher vacancy rates, tenants now have more properties to choose from.

• Improved negotiating power: Fewer applicants per property may slow rent increases and create room to negotiate on lease terms.

• Less pressure to compromise: Tenants can prioritize location, amenities, and property condition rather than accepting “whatever’s available.”

For Investors: A Time to Adjust Strategy

• Vacancy risk is creeping back: While 2.7% is still healthy, properties may now take longer to lease if priced too high.

• Pricing strategy matters: The era of automatic rent hikes is easing; setting a competitive rent and ensuring the property is well presented will be key.

• Opportunities in quality: Well maintained homes in sought‑after suburbs will still lease quickly, but investors should expect tenants to be more selective.

Why This Shift Matters

A balanced rental market benefits everyone:

• Tenants gain fairer access to housing.

• Investors retain steady returns without the reputational risk of “price driven churn.”

• Property managers can focus on long‑term tenant retention and protecting rental yields through professional leasing strategies.

The Perth market is still underpinned by strong population growth and ongoing rental demand, so while this isn’t a downturn, it is a transition to a more sustainable market environment.

Investor Insight

Now is the perfect time to:

• Review your rental pricing and marketing strategy

• Ensure your property is well maintained and attractive to quality tenants

• Consider strategic upgrades to stand out in a slightly more competitive market

• Ensure that your tenants are happy in their home - Longer tenancies are financially better for investors.

If you’d like tailored advice on maximising your returns in a rebalancing rental market, I’d be happy to provide a no‑obligation rental appraisal or investor audit.