As a reputable real estate agency in Fremantle, Western Australia, we understand the
challenges and opportunities presented by the dynamic rental market in the region. In this blog
post, we delve into key indicators and market trends to provide a comprehensive analysis of the current rental landscape in Western Australia, with a particular
focus on Perth.
The challenges facing Perth’s current rental market are starkly contrasted with historical trends.
Between 2012 and 2021, the city experienced a period of falling rents, leading to a lack of
investment in housing supply. Investors, seeking more favourable conditions, diverted their
attention to other regions. This shift in dynamics has resulted in a present-day shortage of rental
homes, with limited options for affordable units as tenants move towards the outskirts.
Vacancy rates allow us to track the percentage of all listed properties that are currently vacant
or unoccupied. Typically, a vacancy rate between 2.5% and 3.5% indicates a balanced market.
As of December 2023, Perth’s vacancy rate stood at 0.7%, affirming its position as one of the
lowest in the country.
Median Rental Prices:
Perth witnessed a notable increase in median weekly rent, particularly for three-bedroom
houses, which rose by 6.8% to $550. This surge was the highest among capital cities. Annual
data also highlighted significant growth, with house rents increasing by 19.6%, leading the
capitals in growth.
The Western Australian Government has recognised the supply-demand imbalance and
implemented measures to boost housing supply. These include the Housing Supply Unit and
the WA Rental Relief Program, aimed at assisting vulnerable tenants and investors facing
Challenges and Investor Trends:
Investor activity in WA has surged, comprising 32% of total activity in the first quarter of 2023.
WA’s investor-friendly environment is attributed to its policies, contrasting with more stringent
measures in other states.
Despite increased investor activity, Perth faces a rental crisis impacting affordability. The Rental
Affordability Index highlights a significant drop in affordability for average-income households in
Perth, placing strain on low-income individuals.
Advice for Potential Renters:
Given the intensely competitive rental market in Perth, potential renters are facing a challenging
environment. Here are some pieces of advice for those navigating the rental landscape:
1. Start Early and Be Prepared: Begin your search well in advance of your desired move-in
date. Being proactive and prepared with necessary documentation can give you an edge
in the competitive application process.
2. Expand Your Options: Consider exploring a range of suburbs, including those that
might not be your first choice. High demand in certain areas may necessitate flexibility
to secure an affordable and suitable rental property.
3. Utilise Online Platforms Effectively: Stay updated on real estate websites and
platforms to be among the first to view new listings. Act swiftly when you find a suitable
property to increase your chances of securing it.
4. Build a Strong Application: Stand out from the competition by presenting a
comprehensive and well-organised rental application. Include references, proof of
stable income, and a personal statement to make a positive impression on landlords.
5. Consider Share Housing: In a market with high demand and limited supply, sharing
accommodation might be a practical and cost-effective option. Explore share housing
opportunities to ease the financial burden of renting on your own.
In navigating the tight rental market in Western Australia, our agency remains committed to
providing guidance and assistance to both tenants and landlords. For personalised advice and
support, reach out to our experienced property managers, and let’s work together to overcome
the challenges presented by the current rental market conditionsTo attract retirees, a city must have nice weather, great entertainment, facilities for senior citizens and a sense of community. Not every city can meet these requirements well, but Fremantle does.