Perth Rental Market Review
This month, we wanted to provide a more detailed analysis of the rental market in Perth based on properties within 15km of the Perth CBD compared to those in the outer suburbs. Here at Celsius, our Property Managers are still seeing high demand for properties, however, the demand is higher in the suburbs closer to the CBD than those outside of this range.
Let’s take a closer look using the Market Insights provided by REIWA. These reports are generated over a 12-month term ending in December 2024.
Overall, the Perth CBD has a median rental price of $700pw and in this search, we’re including suburbs within a 10km radius. As of December, there were 4,285 properties leased over the 12-month period with 198 listings currently advertised. The median days to lease a property in these suburbs was reported as 14.
With that in mind, lets jump to the eastern suburbs which includes areas within a 15km radius of Armadale. The median rental price for properties in these areas was $630pw, with 1,364 properties leased and 118 listings for rent currently available. The median days to lease a property in these suburbs was 16 days.
Let’s now go a little more to the west and assess the Cockburn area. The median rental price here was $690pw with 1,635 properties leased in the 12-month period and 78 listings currently available to rent as of December. The median days to lease a property in this area was 14 days. The drive from Cockburn to Piara Waters (which is under the Armadale jurisdiction), is under 15 minutes and the difference in weekly rental price as well as median days to lease a property is quite different given the short commute.
Just to round off our research, lets now assess the suburbs that fall within the Wanneroo catchment which includes suburbs like Alkimos, Butler, Mindarie and Wangara. Overall, the median rental price was $650pw and there were 2,549 properties leased with 164 active listings currently available as of December. The median days on rent for these properties was 14 days.
Now that we have the statistics above, lets break it down.
There were more rental properties available to rent in the suburbs surrounding the CBD, achieving a higher median rental price than the outer suburbs, indicating that renters are willing to pay more for the location. Being close to the CBD has its benefits and is still highly sought after from renters. With access to the central train lines to all suburbs, the proximity to Universities, the Swan River, Kings Park, beaches, and the hustle and bustle lifestyle that’s offered – it’s no wonder renters are attracted to the inner suburbs.
So why the difference between Wanneroo and Cockburn? They are both roughly a 30 min drive to the CBD and just shy of 30kms but have very different numbers. Perhaps it comes down to accessibility and infrastructure. Whilst the suburbs in both areas have easy access to beaches, Cockburn has invested in infrastructure including the Cockburn Central Precinct, established bus and train lines including the upcoming Thornlie-Cockburn link providing the first east to west crossover.
To conclude, whilst some agencies may be seeing a decrease in numbers attending home opens, it’s dependent on price and the location of the property. We are still experiencing a high demand for properties close to the CBD and cannot foresee the rental market changing drastically in the inner suburbs any time soon. Perth still has a shortage in rental properties but given the rental prices we have seen over the last 12 months, investors are slowly coming back to Perth. If you have just purchased an investment property or thinking of renting your own home, please do not hesitate to reach out to Celsius to provide a free appraisal.