Perth suffered the biggest increase in rental prices in 2023 and has continued its record-long stretch of rising rent, with one tenant being hit with a $250-a-week price hike.
Key points:
- Perth rent prices have increased for the ninth consecutive quarter
- Some tenants are reporting weekly rent increases of $250
- The city’s rental vacancy rate has hit 0.4 per cent
The latest property report by Domain shows house rent prices in Perth have increased for the ninth consecutive quarter, with unit rents rising for the sixth quarter in a row.
In the past year, house rents in Perth have grown 17 per cent, and units have risen by 18 per cent.
Domain chief of research and economics Nicola Powell described the situation as “very much a landlord’s market”.
“It is the most competitive rental market out of all of our capital cities, jointly with Adelaide,” she told ABC Radio Perth.
“Both of these cities … [have a] measly vacancy rate, it’s stubbornly low at 0.4 per cent.”
Pain for Rivervale household
Margaret River father Bernard Shanahan said his 28-year-old son, who lives in a share house in Rivervale in Perth, was just given notice of a $250 increase in his weekly rent.
“They got a notice Tuesday evening saying ‘look, we’re very happy with the tenancy and would like to offer you a fixed lease extension’,” Mr Shanahan said.
“‘We’re offering you a 12-month extension with a $250 rent increase, which equals new rent of $800 per week.’
“And then it says down the bottom again, ‘thank you for being great tenants’.”
Mr Shanahan said it likely meant his son would have to leave the city and move back to regional WA to live with family.
“He’s going to have to come home … he just wants somewhere to live, you know, where he can be independent,” he said.
Housing demand surging
Regional areas also saw a huge bump in rental pricing in the past year, with Bunbury seeing the biggest increase of 15.6 per cent.
Dr Powell said Perth – and Western Australia more broadly – had unique factors that contributed to an exceptionally tight rental market.
“In terms of what’s creating this, obviously lack of supply, but it is [also] demographic trends,” she said.
“WA’s got positive net interstate migration, which is a turnaround from the multiple years that it was into the negative, and it’s also got stronger or elevated levels of overseas migration also.”
Domain’s report highlighted perilous conditions for renters across 2023, but pointed to a glimmer of hope, noting rental prices were beginning to stagnate in some jurisdictions.
“There are a number of factors slowing rental growth — stretched affordability, more renters opting for house shares and a slow return of investors of 2023,” the report read.
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