Is the Perth Rental Market slowing down?
The short answer is: yes, but not evenly across every suburb or property type, and this is likely seasonal.
Yes, in some areas we are starting to see signs of stabilisation, particularly through increasing rental stock levels and longer tenant decision-making timeframes. Currently over 100 available rentals in Baldivis, and 58 available rentals in South Perth, the most we have seen in a long time.
After several years of record-low vacancy rates, rapid rent growth and intense tenant competition, the Perth rental market is beginning to show early signs of stabilisation. Rental stock levels are increasing in some areas, tenants are taking longer to make decisions, and landlords can no longer rely on “list it today, lease it tomorrow” conditions.
That does not mean the market has crashed.
It means the market is transitioning from an extreme landlord-favoured environment toward a more balanced phase.
According to REIWA, Perth’s vacancy rate hit a historic low of just 0.6% in December 2022. Since then, vacancy rates have gradually risen, reaching 2.0% in early 2025 and fluctuating around the 2.0–2.6% range through 2025 and 2026.
REIWA considers a vacancy rate between 2.5% and 3.5% to represent a balanced rental market.
What Does This Actually Mean for Perth Property Owners?
The biggest shift is not necessarily falling rents.
The shift is competition.
In many Perth suburbs — particularly areas with high levels of investor activity, apartments, or new development estates, tenants now have more choice than they did 12–18 months ago.
We are seeing:
More available rental listings
Longer days on market
More enquiry hesitation
Increased tenant comparison shopping
Greater sensitivity to presentation and pricing
Tenants negotiating more confidently
REIWA weekly market snapshots throughout 2026 have shown rental stock levels increasing in multiple periods, with available rentals sitting higher than previous months in some weeks.
At the same time, leasing volumes have softened compared to previous years, indicating tenants are taking longer to commit and properties are no longer moving at the same speed as the peak shortage conditions.
Why Property Management Matters More in a Softening Market
During an extreme shortage, almost any property could lease quickly.
That hides poor management.
In a stabilising market, strategy becomes far more important.
This is where experienced property management makes a measurable difference:
Pricing correctly from day one
Monitoring enquiry levels early
Adjusting strategy quickly
Improving presentation before launch
Conducting flexible viewing times
Communicating professionally with prospective tenants
Managing maintenance proactively
Reducing vacancy loss through better campaign execution
Because vacancy cost is permanent.
An owner chasing an extra $20–$30 per week while losing multiple weeks vacant often ends up financially behind overall.
The properties performing best right now are not necessarily the cheapest.
They are the properties creating the strongest perceived value.
About The Author
Lauren Thumwood – Director/Licensee, L Residential
Lauren Thumwood is a Property Management specialist with over 13 Years industry experience operating at Senior leadership levels within the Perth Residential Rental Market. Having led and optimised large rent rolls, Lauren is known for her structured, performance-driven approach focusing on efficiency, compliance, and measurable portfolio outcomes.
As the Director of L Residential, Lauren brings a unique perspective as both a property professional and investor, combining strategic oversight with hands-on experience in leasing, tenancy management, and asset performance. Her approach is built on transparency, accountability, and proactive management, ensuring clients are not only informed, but positioned to make confident, data-backed decisions.
Lauren founded L Residential to redefine the investor experience, delivering one point of contact, consistent communication, detailed reporting, and a clear strategy focused on performance, risk management, and long-term asset protection.