Perth’s rental market

About one out of every four households in Western Australia is a rental property, representing approximately 200,000 dwellings.

Most rental properties are located in the inner suburbs. For example, over 75 per cent of all metropolitan rental properties are located within a 15 kilometre radius of the CBD.

Suburbs with the highest concentration include East Perth, Karawarra, West Perth, Northbridge, Highgate, Bentley, Glendalough and Victoria Park. Rental properties can account for up to 70 per cent of all dwellings in these areas. for_rent

Surprisingly, most tenants live in houses and not flats or units. Census result continue to show that up to 60 per cent of tenants live in traditional houses, although it’s true that around half of all strata dwellings exist as rental properties.

Most tenants prefer a short lease, with the more common lease being six months. Tenants clearly like the flexibility of a short lease, however more than half of all such leases are renewed for a further six months when the initial lease expires.

The median rent for accommodation in Perth is now $450 per week if you include units, apartments, villas and houses in the equation. Houses alone are generally higher with a median of around $460 per week.

Rents in Perth have been slowly coming down since 2013 with the median weekly rent dropping $25 from $475 around this time last year.
This is due to a slow-down in population growth but also from large numbers of renters having taken advantage of very low interest rates to buy a home of their own, enabling them to leave the rental system. This in turn freed up more properties for rent and is a key reason why Perth’s current vacancy rate is now a third higher than average, sitting at 4 per cent or 5,600 properties.