By Brett White, Licensee – RE/MAX Extreme
Steady Growth Nationwide, Perth Leading Over the Year
Australia’s property market saw another month of broad-based growth in May 2025, with Cotality (formerly CoreLogic) reporting a national rise of 0.5% in residential property values. Darwin stood out with a 1.6% increase—the only capital to exceed 1% growth. Perth followed closely at 0.7%, with Brisbane and Hobart each rising by 0.6%. The remaining capitals also recorded gains, ranging from 0.2% to 0.5%, and notably, none experienced a decline.
Here in Perth, property values have climbed 1.6% over the past quarter and 8.6% over the past 12 months—marking the strongest annual increase of any capital city in the country. This consistency reflects just how resilient our market continues to be, even as broader economic conditions evolve.
Perth’s Low Stock Levels Keep Pressure on the Sales Market
According to REIWA, the number of homes listed for sale in Perth sat at 4,251 in the week ending 1 June 2025. That’s down from 4,754 a month earlier, though still higher than the 3,270 listings available during the same week last year.
However, with a balanced market typically requiring around 13,500 listings, current supply remains very tight—and that’s keeping competition strong among buyers.
In terms of selling time, the median number of days to sell a house decreased to 13 in May, which is still four days slower than this time last year. Units remained steady at 14 days. Even with this slight lag, properties are continuing to move quickly when priced and presented well.
Rental Listings Rise as Market Conditions Stabilise
We’ve seen further signs of easing in the rental market. During May, median rents held steady—$680 per week for houses and $650 for units—indicating a pause in the strong growth we’ve seen in previous months. These figures suggest Perth may have reached a rental affordability ceiling, with more tenants opting for shared housing or more budget-friendly options.
REIWA reported 2,375 rental listings in the week ending 1 June—up from 2,299 a month earlier but slightly below the 2,405 available this time last year. Vacancy rates rose to 2.8% in May, pushing Perth into the balanced range for only the second time since late 2019. That said, the rental market remains active, with properties leasing in a median of 17 days—just one day longer than a year ago.
Perth on Track to Outperform 2025 Growth Forecast
At the start of the year, Perth’s residential market was forecast to grow between 9–11% in 2025. So far, things are looking on track—or even better. According to REIWA, median house prices have already increased by 2.7% in the first quarter alone.
Here at RE/MAX Extreme, we’re also seeing strong results across some of Perth’s high-demand suburbs. In fact, in a sample of investment-focused areas, growth hit 3.3% in Q1—outpacing the broader market and setting up the potential for a stronger-than-expected year.
Factors like population growth, limited housing supply, and renewed buyer confidence following the most recent interest rate cut are all playing their part. If these trends hold, I wouldn’t be surprised to see Perth exceed early expectations—just as we’ve seen in previous growth cycles.
National Lending Activity Slows, But WA Investors Stay the Course
Australia-wide, lending activity softened over the March 2025 quarter. The number of new home loans dropped by 3.5%, with the total loan value down 1.6%. Owner-occupier loans declined by 2.5%, and investor lending dipped slightly by 0.3%. First home buyer numbers also took a hit, with both loan count and value decreasing.
Here in Western Australia, the investor share of new lending fell to 33.9% for the quarter—down slightly, but still more than double the investor activity we saw at the 2019 low. With strong rental yields, growth potential, and more affordable buy-in prices than many other states, WA continues to attract interest from property investors.
Final Thoughts
In summary, May has shown that while the national market continues to grow at a steady pace, Perth remains at the forefront. Tight stock levels, stabilising rental prices, and above-average capital growth are all reinforcing the city’s appeal for both homeowners and investors.
If you’re thinking about making a move—whether selling, upsizing, investing, or simply wanting to know what your home might be worth—I’d love to help you navigate your options. As always, our team at RE/MAX Extreme is here to offer local insight backed by real market data.
Source: Momentum Wealth, Real Estate Institute of Western Australia & CoreLogic