Perth rental market finally cooling off for first time since 2021 after staggering run of price increases

Perth’s staggering run of rental increases has finally come to an end, with median house rents dropping for the first time since late 2021. New Figures from the Real Estate Institute of WA shows April rental price drop shaved 1.4 per cent off the weekly rent for houses — or $9.50 — to hit a median price of $680. There have been only two house rent price drops in the past eight years, with a $5 a week drop in November 2021 taking weekly rents o $440, and a $5 drop in November 2017 to dropping leases to $320 per week. House are still renting for 4.6 per cent more — an extra $30 per week — compared with April 2024, while units lease for $650 per week, which is up 8.3 per cent — or $50 a week — compared with a year ago. Real Estate Institute of WA president Suzanne Brown forecast rents will fluctuate this year “With changing conditions in the market, we expect to see some movement up and down in the Perth median rent price over the coming months,” Ms Brown said. “However, results will differ from suburb to suburb. “In suburbs where demand is high, median rent prices are likely to continue to increase. Median rent prices may decline in areas that are less popular or where there is an excess of supply. “In these suburbs tenants may have more negotiating power than they have had in the past few years. “Even within a suburb, one home may see a rent price increase, while another one nearby may need to have its asking price reduced in order to secure a tenant.” It took a median 15 days to lease homes in April, unchanged from March but a day faster than a year ago. The research also shows Perth’s median house price increased 1.1 per cent in April to $775,000, which is a solid 19.2 per cent higher than a year ago. Ms Brown said sale results varied by suburb. “While the majority of Perth suburbs continue to record increases in their median house sale price, some have shown stability over the past few months and a few are starting to record slight declines,” Ms Brown said. “We are occasionally hearing reports from members about properties being sold for less than the asking price but this depends on a number of factors such as location, presentation, realistic initial pricing and local levels of competition and buyer interest.” The suburbs that saw the most house price growth in April were Applecross (up 3.8 per cent to $2,700,000), Duncraig (up 2.5 per cent to $1,240,000), Hillarys (up 2.3 per cent to $1,450,000), Padbury (up 2.2 per cent to $984,500) and Dianella (up 1.7 per cent to $936,000). Rockingham, Quinns Rocks, Falcon, Woodvale and Girrawheen were also among the top performers, recording growth of 1.5 per cent or more over the month.