By Brett White, Licensee – RE/MAX Extreme
RBA Keeps Cash Rate at 3.85%
On 8 July 2025, the Reserve Bank of Australia maintained the official cash rate at 3.85%, against market expectations of a 25 bp cut. Earlier in 2025, the RBA applied two rate reductions, but it now signals a wait-and-see approach. Despite inflation easing into the 2–3% target band, some of this relief was due to temporary government measures. The RBA highlighted persistent wage pressures and global uncertainties, noting further adjustments may still be necessary.
Perth Shares Strong Annual Growth
According to the latest Cotality index, Perth’s dwelling values rose by 0.8% in June and 2.1% for the quarter, maintaining a 7.0% year-on-year increase—the highest in the nation, matching Brisbane. This sustained momentum reflects solid long-term performance for WA homeowners.
Low Listings Squeeze the Market
In the week ending 29 June, REIWA reported 3,971 properties for sale in Perth—up from the previous month but still well below the ~13,500 needed for a balanced market.
The median selling time is now 13 days for both houses and units, suggesting competition remains high.
Rental Market Shows Early Signs of Softening
Perth’s median rent in June reached $680/week, a 4.6% increase from last year.
There were 2,404 rental listings—slightly more than the previous month, but still low for Perth’s size.
The vacancy rate improved to 2.7%, and median lease time dropped to 16 days, a day faster than this time last year.
Strong Rental Yields Attract Investors
Perth continues to post strong gross rental yields (around 4.6–4.8%), placing it among the top-performing capital cities. This remains especially appealing in a higher-rate environment, supporting sustained investor interest in Western Australia.
Investor Lending Remains Robust
In the March 2025 quarter, new national housing-loan values fell 1.6%, but investor lending in WA remained strong at 33.9% of new loans—well above 2019 lows—underscoring continued investor confidence in Perth’s market.
Outlook: Perth Positioned to Surpass Forecasts
With a 2.7% price rise in Q1 and investor-driven capital growth of 3.3% across key suburbs, Perth is tracking strongly toward its 9–11% 2025 growth forecast, with the potential to even exceed it if current trends continue.
Bottom Line: Western Australia continues to demonstrate strong property demand. While supply remains tight, rental conditions are beginning to ease slightly—providing a clearer picture of a dynamic market. Whether you’re selling, buying, or investing, Perth remains one of Australia’s most active and promising property markets.
Source: Momentum Wealth, Real Estate Institute of Western Australia & CoreLogic