Oil Crisis Impact on the Rental Market

Perth Rental Market Update: What’s Driving Rents Right Now?

At D Residential Group, as Perth property managers, we are continuing to closely monitor the factors influencing rental prices across the market. March has brought further movement, with rents rising again and underlying pressures beginning to re-emerge.

While the market has shown signs of stabilising in recent months, there are early indicators that conditions may tighten once again.

What’s Behind the Current Market Shift?

A key concern impacting the property market is the growing pressure on the building industry. Rising oil prices are increasing construction costs and delaying material supply, which is slowing down the delivery of new housing.

When new builds are delayed, more people remain in the rental market for longer. This includes:

• Tenants waiting for their homes to be completed
• New residents moving to Western Australia
• Buyers delaying purchases due to uncertainty

This increase in demand, without a matching increase in supply, naturally places upward pressure on rental prices.

Where Rents Are Sitting

Perth’s rental market saw further growth in March:

• Median dwelling rent increased to $720 per week
• House rents rose to $740 per week
• Unit rents softened slightly to $695 per week, but remain significantly higher year-on-year

While units experienced a slight monthly dip, overall rental prices remain elevated compared to last year, reinforcing that affordability is still a key consideration for tenants.

Supply Remains Tight

Available rental stock continues to decline:

• 1,870 properties were listed for rent at the end of March
• This is 11.1 percent lower than the same time last year

At the same time, properties are leasing quickly, with a median leasing time of just 15 days.

This combination of limited supply and fast leasing conditions highlights that demand remains strong across Perth.

What This Means for Investors

For landlords, this market continues to present opportunity, but it also requires careful positioning.

We are seeing:

• Continued rental growth across many suburbs
• Strong tenant demand, particularly for well-presented homes
• Increased sensitivity around pricing and value

Setting the right rent is critical. Overpricing can slow enquiry, while strategic pricing attracts strong applicants and reduces vacancy.

Looking Ahead

There are a number of factors that could further influence the rental market in the coming months:

• Ongoing building delays
• Population growth in Western Australia
• Potential changes to taxation and tenancy legislation
• Investor confidence and market participation

We know from experience that when investors exit the market, supply tightens quickly. This was evident during the pandemic, when a significant number of rental properties were removed, contributing to sharp rent increases.

Final Thoughts

The Perth rental market is showing signs of renewed pressure, with rents increasing, supply tightening, and demand remaining consistent.

While conditions are not at peak intensity, the underlying fundamentals remain strong. Ongoing building delays, population growth, and limited rental stock continue to support upward movement in rents.

For Perth property investors, this is a time for strategy, clarity and informed decision making.

At D Residential Group, we provide hands on, high level property management across Mount Lawley, Maylands, Bayswater and surrounding suburbs. If you would like an updated rental appraisal or tailored advice on your investment property, we would be delighted to assist.

Discover the difference informed Perth property management can make.

Statistics obtained from REIWA.