Perth has been a tough market for investors over the last few years. Both rents and valuations have continued to suffer. While Perth is a capital city it is really a shallow market. Majority of employment relates to the mining sector and when that sector is struggling, Perth property struggles.

This is a good example of the effects of supply and demand. Perth is oversupplied in terms of property available. When the market was running hot developers brought too much stock onto the market. This combined with a slowdown in the population growth due to mining sector slowing has spelled a rocky road for Perth prices.

Rents are continuing to drop but should hopefully bottom out soon.