Perth Holds Strong in a Steady National Market
Across the country, Australia’s property market saw a modest lift in February, with CoreLogic reporting a 0.3% rise in dwelling values. Melbourne and Hobart led with a 0.4% increase, followed closely by Perth, Sydney, and Adelaide, each up by 0.3%. Brisbane and Canberra ticked up 0.2%, while Darwin was the only capital to record a slight drop of 0.1%.
For us here in Perth, the 0.3% gain in February comes after a brief pause in January and continues the trend of solid long-term growth. Our city still leads the nation for annual growth, with values rising 14.3% over the past 12 months—proof that Perth continues to offer a resilient and attractive market for buyers, sellers, and investors alike.
For Sale Listings Still Well Below Balanced Market Levels
The number of homes for sale in Perth has seen a small shift. According to REIWA, there were 4,829 properties on the market in the week ending 2 March 2025. That’s down slightly from 4,864 four weeks earlier, but up on the 3,962 properties available during the same week last year.
Even with this increase year-on-year, we’re still well below the estimated 13,500 listings that would reflect a more balanced market in WA. And while stock remains tight, properties are selling quickly—an indication that demand is still strong.
In February, houses sold in an average of 13 days, which is four days faster than at the same time last year. Units are also moving faster, averaging 12 days on the market. This speed speaks to ongoing buyer competition, particularly in well-located and well-presented homes.
Rental Market Reaches New Price Levels as Vacancy Rises
REIWA data shows that Perth’s rental market saw a slight lift in prices during February, with the median weekly rent rising to $675—an 8% increase compared to a year ago. House rents now sit at $680 per week, while units remain at $650.
That said, rents have stayed relatively steady in recent months, which could be a sign that we’re nearing a price ceiling for many tenants. With affordability becoming more of a concern, we’re seeing renters increasingly looking at shared living or lower-cost options.
On the supply side, there were 2,016 rental properties listed during the week ending 2 March 2025. This is a drop from 2,142 in early February but still higher than the 1,683 recorded a year ago.
Perth’s vacancy rate rose again to 2.3%—the highest we’ve seen since 2020. While that’s still below the 2.5%–3.5% range that defines a balanced rental market, it’s an early indicator that the pressure may be starting to ease slightly for tenants. Properties continued to lease in a median of 15 days—unchanged from both last month and this time last year.
Rental Yields Keep Perth in Investor Spotlight
For property investors, Perth continues to deliver solid rental returns. Our city recorded a gross rental yield of 4.3% in February, placing us just behind Darwin (6.7%) and Hobart (4.4%) for the highest yields among Australian capitals. In contrast, Sydney remains the lowest at just 3.1%.
These yields, combined with our strong population growth and relatively affordable entry prices, continue to make Perth an attractive choice for savvy investors.
Employment Trends and What They Mean for WA
National unemployment rose slightly to 4.1% at the end of January, which the ABS attributes to seasonal changes—particularly the number of people transitioning into new roles after the summer break. This pattern is consistent with previous years and doesn’t suggest any major economic weakness.
Closer to home, Western Australia’s unemployment rate held steady at 3.6%, equal to Tasmania and just above the national low of 3.2% in the ACT. These figures point to a generally healthy job market in WA, which bodes well for continued confidence in both the housing and rental sectors.
Final Thoughts
All in all, February showed that Perth’s property market remains in a strong and stable position. While national conditions are mixed, we’re continuing to see steady growth, fast selling times, and strong yields. And with population growth and buyer interest still running high, there’s plenty of reason to feel confident about what lies ahead.
Whether you’re buying, selling, or simply keeping an eye on market trends, I’m always happy to have a chat about how this data could impact your next move. If you’d like to know more about your suburb, your home’s current value, or your options in today’s market, feel free to reach out—my team and I are here to help.
Source: Momentum Wealth, Real Estate Institute of Western Australia & CoreLogic