Perth Property Market 2024: What’s Next for 2025?
Perth’s property market defied expectations in 2024, achieving more than 20% growth despite challenges such as high interest rates, inflationary pressures, and an undersupply of housing. As other Australian markets cooled, Perth continued to thrive, driven by record population growth and sustained demand for housing.
Looking ahead to 2025, industry experts forecast continued growth in Perth’s property market, though at a more moderate pace compared to 2024. Here’s what you need to know about Perth’s real estate outlook for the year ahead.
Will Perth Property Prices Rise in 2025?
Most analysts agree that Perth’s property market will continue to grow in 2025, albeit at a slower rate than 2024. While double-digit growth is still possible, some predictions range between 10-12%, driven by a strong local economy, ongoing population growth, and a continued shortage of housing.
Key Drivers of Growth
- Population Growth: WA continues to experience record migration, with over 1,000 people moving to the state each week. This influx adds pressure to an already constrained housing market.
- Limited Housing Supply: Building costs remain high, and new construction has been slow to catch up with demand, particularly in established suburbs.
- Affordability Advantage: Perth remains one of the most affordable capital cities in Australia, making it attractive for both first-home buyers and investors.
Suburbs to Watch in 2025
The year ahead is expected to see strong growth in suburbs offering lifestyle amenities, proximity to the coast, and access to quality schools. Suburbs such as Mindarie, Melville, Wembley, and North Beach are poised to benefit as buyers seek to upgrade into areas with better infrastructure and lifestyle options.
Outer suburbs with established homes are also expected to perform well due to high construction costs, making existing homes a more affordable option than building.
Is Now a Good Time to Buy?
Experts agree that now is an excellent time to enter the Perth market, particularly for those looking to buy as owner-occupiers or long-term investors.
With housing prices expected to continue rising in 2025, delaying a purchase could make it harder to enter the market. Listings remain below the five-year average, and Perth continues to operate as a seller’s market, reinforcing the need for buyers to act quickly.
Opportunities in 2025
- Interest Rate Cuts: Anticipated rate cuts in mid-2025 could reignite buyer confidence and increase borrowing capacity, particularly for those looking to upgrade to higher-value properties.
- Coastal and Lifestyle Suburbs: As demand shifts toward areas with strong lifestyle appeal, suburbs near the beach or within desirable school zones are expected to see robust growth.
- Local Buyers Leading the Market: With fewer interstate investors active in Perth, local buyers, including first-home buyers and upgraders, are likely to drive demand in the affordable housing segment.
A Resilient Market
Perth’s property market remains one of the strongest in the country, supported by a thriving local economy, low unemployment, and significant population growth. While challenges such as inflation and interest rates persist, Perth’s affordability and supply constraints provide a solid foundation for continued growth in 2025.
For buyers and investors looking to secure a foothold in WA’s dynamic property market, the time to act is now. With the potential for further price increases and strong long-term prospects, Perth remains a standout choice for real estate investment in Australia.
If you would like to find out more about the property market, please get in contact for a confidential and obligation free chat.
Source: Domain (https://www.domain.com.au/)