Perth rents are tipped to soar by the end of the year as listings continue to dwindle, now down to half the historic highs they reached in mid-2017.

Property managers are reporting bigger crowds at home opens and a return to tenants making offers above the asking price as the market tightens, with just 6553 properties listed for rent across metropolitan Perth in February.

That is a 26 per cent decline on the previous year, and way down on the 13,000 empty rentals that swamped the city a couple of years ago.

When median rents in the city peaked at $450 a week at the end of 2013 there were around 4500 properties available for rent and, with vacancies heading back in that direction, Real Estate Institute of WA president Damian Collins said Perth’s median rent — currently $350 — was bound for an upward trajectory.

“I think we will see the median price rise by at least 10 per cent through the year,” he said.

“We were at about $450 four and a bit years ago, and I suspect it could be high $300s by Christmas.”

Mr Collins, who is also the managing director of Momentum Wealth, said a CBD apartment his company leased 12 months ago for $470 a week was now fetching $590.

“We thought we’d put it on the market for $540 and within days the property manager had an offer of $590 from a guy who wanted to get in before the first home open,” he said.

Offers above asking price come as competition heats up in neighbourhoods across the metropolitan area.

In southern suburbs Success and Cannington, vacancies halved in the past year, and Spearwood, Dianella, Osborne Park, Westminster and Clarkson all recorded similar falls.

FIFO worker Kylie Green and her partner Lionel Armstrong have just secured a four-bedroom home in Morley for $450 a week after offering $20 above what the owner was asking.

That comes after a 37 per cent reduction in rentals in the suburb.

“The asking price was only $430 but I really loved the house — it’s two-storey and the master is upstairs with a huge ensuite — and we were scared we’d miss out,” Ms Green said.

“I have a friend in Bayswater that we wanted to live near and the airport is also close to Morley which is important for my work.”

The strengthening rental market comes despite sales remaining in decline.

Mr Collins said there were a number of reasons behind that phenomenon, including the supply of new rental properties easing as an investment-funded building frenzy that began in the declining days of the mining boom comes to an end.

Tightening credit requirements and a long period of flat rents meant more people were also putting off buying a home and remaining in rentals longer.

And a resurgent resources sector is luring more people to WA, helping to accelerate the market.

“The mining companies are talking about bringing in 8000 to 10,000 jobs from interstate and overseas in the second half of this year and into next,” Mr Collins said.

“We certainly think that points to quite a good 12 to 18 months ahead for landlords.”