Perth rental market broken but there are positives for housing supply

“But the national vacancy rate is around 1.7 per cent, the vacancy rate in Perth is around 1.2 per cent.

Perth unit prices have consistently risen faster than housing since 2024, he added.

But only 17 per cent of startups in Perth are in the high-density sector, among the lowest rates in the country.

He said Perth had performed solidly and consistently above the national average since 2022.

“But Perth has also shown a loss of momentum in its growth rate since November.”

Lawless said house values ​​in Perth and other mid-sized capital cities had fallen over the past five years.

Loading

“But there are still a lot more places that are more affordable than Perth,” he said.

Lawless said the bottom quartile of the market was trending towards consistently stronger growth due to stiff competition from first home buyers, investors and mainstream demand.

He added that stronger regional markets tend to have a combination of livability and affordability.

“We are also seeing many artisanal mining areas such as Karratha and Kalgoorlie seeing an upward swing,” he said.

“Investor demand remains strong, surpassing downstream buyers as the largest share of housing demand.

“First home buying activity has decreased, roughly in line with the national average.”

Lawless also believes another rate hike is possible and expects it to happen around August.