Perth is still in a chronic rental shortage, with prices rising faster than any other capital city in Australia over the March quarter, according to new Cotality research.
The latest rental snapshot shows Perth’s $761 weekly median rent is currently the second-most expensive in the country, behind Sydney’s $824 weekly rent.
Perth’s median dwelling rents have grown 3 per cent over the quarter, which was the fastest growth in the nation, above the national median of 2.1 per cent growth. When assessed alone, Perth’s house rents rose 2.8 per cent and units by 3.7 per cent.
Perth’s annual year-on-year growth is 6.7 per cent, which is on par with Brisbane and second to Darwin’s 9.2 per cent.
The local vacancy rate is only 1.2 per cent — which is below the 2.5 to 3 per cent deemed to be a balanced market.
Perth vacancy remains slightly below the 1.6 per cent national average but it is the only capital where the rate has remained steady, with the rest of the country experiencing a further tightening over the past year.
But while it’s bad news for renters, there is some good news for buyers.
The Real Estate Institute of WA reveals that during the past month, the number of properties listed for sale in Perth surged by over 600 or 20 per cent to 3669.
It compares to just 1881 properties listed for sale in Perth at the end of 2025 which was a record low.
Daniel McQuillan, managing director of Nu Wealth, said many sellers believed it a good time to sell.
“A growing number of property owners are coming to the view that the current Perth property market is nearing its peak in the current cycle and now is a good time to sell,’ he said.
“Other property owners who are building new homes are now moving into these homes at a faster rate due to the improvement in construction times.
“In addition, a growing number of property investors have become nervous about the publicity surrounding proposed tax changes to capital gains and negative gearing and are deciding to sell now before they come into effect.
He said negative economic conditions tended to slow property and boost listings.
Unfavourable conditions at the moment were due in part to rising interest rates and cost-of-living pressures caused by the Middle East conflict.
“While the number of properties in Perth is still at very low levels and demand is very strong, the fact that there are now more than 1400 properties listed for sale compared to the end of 2025 is positive news for property buyers.
He said a rise in listings in a specific location would give buyers more options and a bit more muscle during price negotiations.
He recommended first-homebuyers look at more affordable areas which have a large number of rental properties, such as South Perth, Como, Victoria Park, East Perth and Rivervale.
He said these homes could prove to have better price growth than a house and land package.
“Over the coming months, landlords in these areas may decide to sell their rental properties, and this will create excellent buying opportunities for first home buyers.
“Older units in these inner-city areas can be purchased at a lower price than a new house in a fringe city suburb and offer the opportunity for higher capital growth because of their location over the medium term,” he said.