Perth's Vacancy Rate Rises to 2.3%: What It Means for Landlords and Investors

Perth’s Vacancy Rate Rises to 2.3% – What Does It Really Mean for Landlords?

As of February 2025, REIWA reported a vacancy rate of 2.3%, marking the first time it has reached this level since June 2020. This increase has raised questions about what it means for Perth landlords and investors as the market shifts.

While a rising vacancy rate can suggest softening demand, the broader context of Western Australia’s rental market tells a different story.

At D Residential Group, we keep a close eye on these market trends to help guide our clients through any shifts, ensuring their investments are well-positioned for success.

Understanding the Vacancy Rate Shift

According to REIWA, they define a balanced market as a vacancy rate ranging from 2.5% to 3.5%. The last time Perth’s vacancy rate was 2.5% was September 2019, highlighting that despite the recent increase, supply remains constrained. Population growth, supply constraints, and ongoing construction delays continue to limit housing availability, keeping rental demand high.

Seasonal fluctuations, new developments, and natural market adjustments are all contributing factors to this shift. We've also seen demand start to moderate, with tenants forming larger households, some choosing to buy instead of rent, or returning to the family home to avoid the rental cycle. On the supply side, new investor-built properties have hit the market, and with some tenants moving into newly completed homes, this has helped free up additional rental stock. Even with these changes, properties are still leasing quickly, and rental prices continue to hold strong.

What This Means for Landlords

• More Tenant Choice, But Strong Demand Remains – Tenants may have slightly more options, but Perth is far from a tenant-dominant market. Well-located and well-presented properties continue to attract strong interest.
• Marketing & Pricing Strategies Matter – Landlords who price their properties competitively and invest in strategic marketing will still secure quality tenancies with minimal vacancy periods.
• Quality Properties Stand Out – Rental homes that are well-maintained and well-managed will continue to lease quickly, reinforcing the importance of professional property management.

Looking Ahead: Key Market Trends

Despite short-term fluctuations, rental demand in Perth remains strong due to ongoing migration, economic growth, and slow housing supply. Investors who stay informed and adapt to these conditions will be well-positioned for continued success.

If you’re wondering how these changes might impact your investment or need expert advice on maximising your rental returns, D Residential Group is here to help. Contact us today to ensure your property is positioned for success in any market conditions.