Perth is still the cheapest capital city to rent a home in Australia, despite the first rental price rise since 2013.

A Domain report released today shows the median rent is $355 for houses in Perth and $300 for units.

Sydney is the most expensive place to rent a house at a weekly median of $550. Canberra is the most expensive for units with a $450 weekly median. Even Hobart and Adelaide — long regarded as the cheapest cities to live — are more expensive than Perth.

Hobart houses rent for a median $420 a week and its units for $350 a week. Adelaide houses rent for $375 a week and its units for $300 a week.

The Domain report shows the median weekly house rental cost in Perth recently grew for the first time in almost five years, with a 1.4 per cent rise in the March quarter.

But rents are still 4.1 per cent cheaper than they were a year ago. Renter Ashleigh Wildish paid only $180 a week for her two-bedroom unit in Orelia over the past year. Three years ago she was paying $315 a week for a three-bedroom home in Leda.

“Prices have really dropped over the past couple of years,” the 23-year-old said.

A report by the REA Group found that WA property prices fell 5.7 per cent over the past year but demand for homes grew by 7 per cent.

The report said the growing demand should push prices up in 2018, claiming price rises were already happening in Perth’s premium suburbs.

Shenton Park remains the most in-demand suburb for houses, followed by Floreat and Subiaco. Nedlands, Shenton Park and Doubleview had the highest demand for apartments.