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Perth's rental market has experienced dramatic growth, with average weekly rents climbing from $441 in November 2019 to over $750 by September 2025. Houses now average $826 per week while units fetch around $646 weekly, making Perth one of Australia's strongest performing rental markets with yields ranging from 5.5% to 7.9%.
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Perth's rental market shows strong yields with houses averaging $826/week and units $646/week as of September 2025.
Rental yields range from 5.5% for houses to 7.9% for units, significantly outperforming Sydney and Melbourne markets.
| Property Type | Average Weekly Rent | Typical Yield | Best Performing Suburbs |
|---|---|---|---|
| Houses (3-bed) | $765-$826 | 5.5-6.4% | Leda, Cannington, Midvale |
| Units (2-bed) | $646-$688 | 6.1-7.9% | Orelia, East Perth, Midland |
| Luxury Properties | $1,200+ | 3.5-4.5% | Dalkeith, Cottesloe, Mount Claremont |
| Short-term Rentals | $196/night avg | Variable | CBD, Fremantle, Scarborough |
| Student Housing | $266+/week | 7-8% | Near universities, CBD |
What are the current average rents in Perth for houses, apartments, and townhouses?
As of September 2025, Perth's rental market shows strong pricing across all property types.
Houses command the highest weekly rents, with the overall average sitting at $826 per week. Three-bedroom houses specifically average $765 per week, while four-bedroom properties reach $720-$800 weekly. Two-bedroom houses are more affordable at around $580 per week.
Units and apartments offer more accessible rental rates, averaging $646 per week across all unit types. Two-bedroom units specifically fetch around $645 per week, making them attractive for families and professionals. One-bedroom apartments start from $590-$650 weekly, positioning them well for young professionals and couples.
The median rent across all property types in Perth now sits at $752 per week, reflecting the city's transformation into one of Australia's most expensive rental markets.
Which Perth suburbs have the highest and lowest rental costs?
Perth's rental market shows dramatic variation between suburbs, with premium coastal areas commanding significantly higher rents than outer suburbs.
The most expensive rental suburbs cluster around prestigious coastal and riverside locations. Dalkeith leads at $1,200 per week, followed by Cottesloe at $1,176 weekly. Mount Claremont ($1,117/week), City Beach ($1,105/week), and Swanbourne ($1,092/week) complete the premium tier, all targeting high-income professionals and executives.
Budget-conscious renters should focus on outer southeastern suburbs where affordability remains strong. Medina offers the best value with properties corresponding to a $540,000 median purchase price. Armadale ($570,000 median), Midland ($575,000 median), Calista ($591,000 median), and Camillo and Parmelia (both $600,000 median) provide substantial rental savings.
These affordable suburbs also deliver stronger rental yields, with Medina achieving 5.5% and Armadale reaching 5.3%, making them attractive for both renters seeking value and investors targeting returns.
How much does it cost per square meter to rent in Perth?
Perth's rental costs per square meter vary significantly between residential and commercial properties, with limited comprehensive data available for residential spaces.
Commercial CBD properties average $1,323 per square meter annually for net rent, reflecting Perth's strong business district demand. This translates to approximately $25.40 per square meter weekly for commercial tenants.
Residential rental rates per square meter require calculation from available weekly rents and typical property sizes. A one-bedroom apartment at $590 weekly, assuming 40 square meters, costs approximately $14.75 per square meter weekly, or $765 annually. Larger four-bedroom houses at $720 weekly across 150 square meters work out to $4.80 per square meter weekly.
Smaller properties consistently command higher per-square-meter rates due to kitchen, bathroom, and utility costs being spread across less space. This pricing structure favors larger families seeking value while creating premium rates for compact city living.
What are the total ownership costs beyond rent for Perth landlords?
Perth property owners face substantial additional costs beyond mortgage payments that significantly impact net rental returns.
Property management fees represent the largest ongoing expense, ranging from 8% to 9.5% of annual rental income. For a $650 weekly rental property, management alone costs approximately $2,975 annually. Initial leasing fees add another burden at two weeks' rent plus GST, totaling $1,430 for the same property.
| Cost Category | Annual Amount | Percentage of Rent |
|---|---|---|
| Property Management | $2,975 | 8.0-9.5% |
| Council Rates | $1,500-$2,500 | 4.4-7.4% |
| Insurance | $800-$1,200 | 2.4-3.5% |
| Maintenance Reserve | $8,400-$12,600 | 1.0-1.5% of property value |
| Strata Fees (units) | $2,000-$4,000 | 5.9-11.8% |
| Administrative Costs | $475 | 1.4% |
Additional administrative expenses include lease renewals (0.5 weeks' rent plus GST), monthly admin fees ($10), annual statements ($55), and marketing costs ($295). Maintenance typically requires 1-1.5% of property value annually, adding $8,400-$12,600 for an $840,000 house.
Combined council rates, strata fees, and insurance typically add $2,000-$5,000 annually depending on property type and location, making total ownership costs reach 25-35% of gross rental income.
How do mortgage payments compare with rental income for Perth investors?
Perth's current interest rate environment creates challenging mathematics for property investors, with mortgage payments often exceeding rental income.
House investors face significant negative gearing scenarios in 2025. The median house value of $843,805 requires mortgage repayments of $1,012 weekly (30-year loan at 6% interest), while average rental income sits at $706 weekly. This creates a $306 weekly shortfall that investors must fund from other income sources.
Unit investments show more balanced mathematics with median values of $522,971 requiring $627 weekly mortgage payments against $631 weekly rental income. This near-balance makes units more attractive for cash-flow-focused investors, though the margin remains tight.
Deposit saving requirements compound the challenge, with prospective house buyers needing 5.1-5.8 years to save adequate deposits while unit buyers require 3.7 years. These timeframes assume dedicated saving without rental cost increases.
The gap between mortgage costs and rental returns means Perth property investment currently requires substantial additional income support, making it primarily suitable for high-income investors seeking long-term capital growth rather than immediate cash flow.
What returns do short-term versus long-term rentals generate in Perth?
Perth's short-term and long-term rental markets offer distinctly different return profiles, with Airbnb providing higher gross income but requiring significantly more management effort.
Short-term rentals through Airbnb generate average annual revenue of $57,000 with daily rates averaging $196 and occupancy rates reaching 84%. These figures suggest strong tourist and business traveler demand, particularly in CBD, coastal, and lifestyle-rich areas where guests pay premium rates for convenience and amenities.
Long-term rentals provide more predictable returns ranging from 5-6.5% annually with minimal management requirements. Property owners benefit from stable tenants, reduced cleaning costs, lower marketing expenses, and consistent monthly income without seasonal fluctuations.
However, short-term rentals face increasing regulatory scrutiny and higher operational costs including cleaning, linen replacement, guest communication, and marketing across multiple platforms. Long-term leases eliminate these variables while providing tenant protection and reduced vacancy periods.
The choice depends on investor priorities: short-term rentals suit hands-on investors seeking maximum income potential, while long-term leases attract passive investors preferring stability and lower management burden.
Can you provide specific rental examples for common Perth property types?
Perth's rental market offers clear pricing tiers based on property size and location, making it easy to budget for different lifestyle needs.
Entry-level renters typically target one-bedroom apartments ranging from $590-$650 weekly, perfect for young professionals or couples starting their Perth journey. These properties cluster around transport hubs and offer convenient city access without premium location costs.
Family-oriented renters gravitate toward two-bedroom units at $650-$675 weekly or three-bedroom houses at $670-$765 weekly. The house premium reflects additional space, private outdoor areas, and typically better school zone access that families prioritize.
Larger families requiring four-bedroom houses face $720-$800 weekly costs, while executives and high-income households seeking luxury properties in premium suburbs like Dalkeith pay $1,200+ weekly for waterfront, heritage, or architectural significance.
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These price points position Perth as more affordable than Sydney and Melbourne for equivalent property types while offering superior lifestyle amenities including beaches, climate, and urban planning.
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Who are the typical renters in Perth and how is demand changing?
Perth's rental market serves diverse tenant groups with distinct preferences driving demand patterns across different suburbs and property types.
Students represent a significant rental segment, seeking accommodation near universities and city areas with Campus Perth beds starting from $266 weekly. This demographic prioritizes transport accessibility, shared facilities, and budget-friendly options within reasonable commuting distance of educational institutions.
Professional renters prefer inner suburbs offering proximity to business districts, entertainment, and lifestyle amenities. They typically target one and two-bedroom apartments or small houses in established suburbs with good transport links and urban conveniences, willing to pay premium rents for location benefits.
Families focus heavily on affordable outer suburbs including Camillo, Armadale, and Baldivis where larger properties provide better value. School zones, safety, parks, and community facilities drive their location decisions more than proximity to employment centers.
Recent trends show increasing numbers of multi-adult households sharing rental costs, "rentvesting" professionals living in rental properties while investing elsewhere, and families progressively moving to outer areas as inner suburb costs escalate beyond family budgets.
What are Perth's current vacancy rates and which areas perform best?
Perth's vacancy rates have increased substantially from historic lows but remain below national averages, with significant variation between suburbs and property types.
Perth-wide vacancy rates climbed to 2.5% in March 2025, up dramatically from just 0.4% one year earlier. This increase reflects new apartment supply entering the market and reduced interstate migration compared to pandemic peak periods.
Suburban variation shows clear patterns with CBD and coastal lifestyle areas maintaining vacancy rates under 1%, indicating continued strong demand for premium locations. Established inner suburbs also show tight rental markets with limited available properties.
Newer outer developments experience vacancy rates exceeding 3%, particularly in areas with large apartment completions. These suburbs offer more rental choice but may require longer marketing periods and competitive pricing to secure quality tenants.
Most rental activity occurs in outer suburbs where affordability attracts families and first-time renters, while competition remains fierce for high-demand inner areas where professionals and executives compete for limited premium properties.
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Which Perth suburbs and property types offer the best rental yields?
Perth's rental yield landscape favors affordable outer suburbs for houses and well-located unit developments, offering some of Australia's strongest investment returns.
Top-performing house suburbs deliver exceptional yields between 5.3-5.9%. Leda and Cannington both achieve 5.9% yields with weekly rents of $588 and $700 respectively. Midvale follows at 5.7% ($674/week), while Calista and Hilbert both reach 5.6% with rents of $543 and $637 weekly.
Unit investments show even stronger yield potential, with Orelia leading at an impressive 7.9% yield on $456 weekly rent. Perth CBD units achieve 6.6% yields ($688/week), East Perth reaches 6.5% ($739/week), and Midland delivers 6.5% ($543/week).
These yields significantly outperform eastern capital cities where Sydney and Melbourne struggle to achieve 3.5% returns. Perth's combination of affordable purchase prices and strong rental demand creates compelling investment mathematics.
Smart investment choices focus on established suburbs with good transport links, essential services, and proven rental demand rather than chasing absolute highest yields in remote locations with limited tenant appeal.
How have Perth rents and yields changed over recent years?
Perth's rental market has experienced remarkable transformation over the past five years, delivering some of Australia's strongest growth rates for both rents and yields.
House rents have shown dramatic escalation from November 2019 levels of $441 weekly to current averages exceeding $765-$826 weekly by September 2025. This represents approximately 72% growth over five years, far exceeding inflation and wage growth rates.
The growth trajectory shows accelerating momentum: $485/week (Nov 2020), $525/week (Nov 2021), $621/week (Nov 2022), $731/week (Nov 2023), reaching current levels above $800/week. Each year brought substantial increases rather than gradual adjustments.
Unit rents experienced even stronger percentage growth with 82.9% increases over the past five years, reflecting tight apartment supply and strong demographic demand from professionals and smaller households.
Rental yields improved dramatically from 4.1% for houses in 2020 to current levels around 6.4%, making Perth one of Australia's strongest yield markets. This yield improvement reflects rental growth outpacing capital value increases, creating attractive conditions for income-focused investors.
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What are the rental market forecasts for Perth over the next decade?
Perth's rental market outlook remains strongly positive through 2035, supported by population growth, infrastructure investment, and continued affordability relative to eastern capitals.
Short-term forecasts for 2026 predict slight rental growth moderation as new supply enters the market, but yields should remain robust between 5.5-6.5%. New apartment completions will provide additional rental choice, potentially stabilizing vacancy rates around 2-3%.
Medium-term projections to 2030 show continued strength with median house prices expected to exceed $1.4 million while rental yields stabilize around 6-6.5%. This suggests rental income growth will continue matching or slightly exceeding property value appreciation.
Long-term forecasts through 2035 remain optimistic based on Perth's fundamental advantages including population growth, major infrastructure projects, mining sector stability, and lifestyle appeal. The city's relative affordability compared to Sydney and Melbourne should continue attracting interstate migration.
Compared to other Australian capitals, Perth significantly outperforms Sydney and Melbourne where yields struggle to reach 3.5% and vacancy rates remain elevated. Brisbane shows recent growth but Perth now represents Australia's strongest combination of rental yields, capital growth potential, and market fundamentals.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Perth's rental market represents one of Australia's most compelling investment opportunities in September 2025.
With yields ranging from 5.5% to 7.9% and continued growth potential, Perth offers superior returns compared to Sydney and Melbourne while maintaining strong tenant demand across all property types.
Sources
- SQM Research - Perth Weekly Rents
- Here Property - Perth Rental Trends July 2025
- REIWA - Perth Price Growth March 2025
- REIWA - Perth's Most Affordable Suburbs 2025
- Loans.com.au - Top Rental Yield Suburbs WA
- AB Realty WA - Rent Prices Perth
- Your Mortgage - Renting vs Buying 2025
- Airbtics - Annual Airbnb Revenue Perth
- MPA Magazine - Perth Apartment Market Supply
- Soho - Perth Property Predictions Next 5 Years