Perth Property Market Outlook: Prices Set to Rise Again in 2025
Perth’s property market has been one of the strongest in the country, and it looks like there’s still room for more growth in 2025. Despite high interest rates and economic uncertainty, Perth defied national trends in 2024, recording impressive growth in house and unit prices. Now, forecasts suggest another strong year ahead—although at a more moderate pace.
How Perth’s Market Performed in 2024
Perth’s median house price surged by 24.2% in 2024, rising from $600,000 at the start of the year to $745,000 by December. Similarly, the median unit price increased by 21.4%, reaching $500,000. These increases pushed Perth’s property values well past previous market highs, with houses now sitting 36.7% above the last peak in 2014.
So, what’s driving Perth’s market?
- Strong Population Growth – WA’s population grew by 2.8% in the year to June 2024, driven by overseas migration and local demand.
- Low Housing Supply – Limited new builds and ongoing construction delays have kept competition strong for established homes.
- Economic Stability – WA’s economy remains robust, with low unemployment and steady job growth supporting buyer demand.
What to Expect in 2025
Property values are expected to continue rising, but at a slower pace than 2024. Forecasts indicate 5% to 10% growth over the year, supported by ongoing demand and constrained supply.
However, two key factors could influence the market in the first half of the year:
- Interest Rate Changes – Uncertainty around when rates will be cut has created some hesitancy. A reduction in interest rates would likely boost buyer activity.
- State and Federal Elections – Historically, the property market slows in the lead-up to elections as buyers and sellers wait to see potential policy changes.
Affordability and Demand Trends
As house prices rise, affordability will become a bigger focus in 2025. Demand for more affordable suburbs, as well as units and townhouses, is expected to grow. Many buyers are turning to units as a more accessible entry point to homeownership.
Despite some easing in urgency, homes are still selling fast, and Perth remains a seller’s market. If demand continues to outpace supply, price growth will persist.
Perth Rental Market Update
The rental market showed signs of stabilising in 2024 after several years of rapid growth. The vacancy rate rose from a record low of 0.4% in March to 1.9% by the end of the year, as more properties became available.
Key rental market trends:
- The median house rent hit a record $670 per week, up 8.1% year-on-year.
- Unit rents saw even stronger growth, rising 14% to $650 per week.
- More rental supply is coming, thanks to completed investor-owned new builds and tenants moving into newly built homes.
While rent prices are expected to continue rising in 2025, the pace of growth is likely to slow. With increased supply and changing rental demand, rents in some outer suburbs may soften, while inner-city and well-located properties remain in high demand.
Regional WA Property Trends
Regional housing markets had a mixed year, with some areas seeing substantial growth while others remained stable.
Top-performing regional centres in 2024:
- Bunbury recorded a 27.3% price increase, with strong employment and improved infrastructure attracting long-term residents.
- Busselton, Albany, and Geraldton are expected to see 10%–15% growth in 2025.
- Broome, Busselton, and Esperance could experience 5%–10% growth, while mining towns like Kalgoorlie and Port Hedland may see up to 5% growth.
Rental market conditions across regional WA vary, with some areas stabilising while others continue to experience rising demand.
Looking Ahead: 2025 Could Be Another Strong Year for Perth
While Perth’s record-breaking growth in 2024 may not be repeated at the same scale, the city is still expected to be one of Australia’s strongest-performing property markets in 2025.
The key factors to watch:
- If interest rates are cut, buyer activity is likely to surge.
- Supply constraints will continue driving demand for established homes.
- Affordability will become a bigger factor in shaping buyer decisions.
For those looking to enter the Perth property market, 2025 is shaping up to be another competitive year—especially in high-demand areas close to lifestyle hubs and major transport routes. If you’re thinking of buying, acting sooner rather than later could put you in a better position before prices rise further.
Source: REIWA (https://reiwa.com.au/)