Perth Property Market Predictions 2025 [Updated April 2025]
With the first quarter of 2025 behind us, it’s an ideal time to pause and assess how the Perth property market is shaping up against expectations for the year.
While Perth property market predictions can only ever give us part of the picture, the latest data from the first few months of the year, alongside updated annual figures from 2024, helps paint a clearer view of where things stand and puts us in a stronger position to evaluate the trends at play and consider what’s ahead for the rest of 2025.
As such, let’s take a look at how the market is tracking until now.
Summary of Perth Property Forecast from October 2024
In October 2024, the Perth property market was expected to experience continued growth, although at a slower pace than the previous year. House prices were projected to rise by 5.2% by the end of 2025, following a 10.2% increase in 2024. This would bring the median house price range to $840,000 and $856,000 by December 2025.
Unit prices were also expected to rise, though at a more modest 8.0% by 2025, with the median unit price forecast to range between $443,000 and $447,000.
In the rental market, the median weekly rent for houses had risen from $585 in 2023 to $650 by the end of August 2024. Units saw similar growth, with the median rent climbing from $530 to $600 during the same period.
Although rental growth was expected to slow slightly throughout 2025 as new supply entered the market, the demand for rental properties was anticipated to remain strong. This gradual moderation was expected to continue as the rental market balanced itself out.
Perth House Prices Lead Nation in Total Return
As of March 31, 2025, Perth continues to lead the nation with the highest total return at 16.7%. This comes amidst a broader recovery in Australian property prices, with national home property values surpassing $820,000. While Perth’s market experienced significant growth—over 75% since March 2020—its pace has slowed since late 2024, stabilizing around a plateau.
Despite this, the city remains at the forefront in terms of overall return, continuing to outperform many other markets, including Sydney and Melbourne, thanks to its strong fundamentals and investor confidence. However, affordability still poses a challenge. Sure, Perth remains one of the most affordable capital cities, but the gap between median house prices and incomes is widening.
At large, this return far exceeds the projected 5.2% growth for house prices in 2025, suggesting that the market continued to outperform expectations—at least through Q1.
Perth’s Changing Property Market Conditions in 2025
Perth’s property market is gradually shifting gears in 2025. While demand remains strong, increased listings and a slowdown in population growth are creating a more balanced environment for buyers and renters alike. Here are some key factors that are shaping the city’s property market in 2025:
More Listings and More Time to Choose
The number of homes for sale in Perth has grown noticeably. As of March 2025, there were 5,082 active listings on REIWA, up 4.8% from February and a significant 41.5% higher than the same time last year. This rise has given buyers more breathing room compared to the intense competition of early 2024.
According to REIWA President Suzanne Brown, two key changes are driving this shift. First, the strong population growth is tapering off. Annual growth slowed from 3.4% in the year to September 2023 to 2.5% in the year to September 2024. Although these figures lag current conditions, recent market behaviour suggests this trend is continuing.
Second, there’s been a steady stream of new listings since a noticeable increase in October and November 2024. This consistent flow of properties has expanded buyer options and allowed more time for decision-making—unlike the frenzy of early 2024, when properties were being snapped up in just nine days with under 3,600 listings available.
This rise in listings has been more significant than originally predicted, leading to a shift where buyers now have more time to make decisions, softening the competitive environment.
House and Unit Prices Still Rising, But More Gently
Perth property prices are still trending upwards, though not at the breakneck pace of last year. Perth’s median house sale price climbed 1.2% in March to $766,500, which marks a 20.7% increase compared to March 2024. Units followed a similar path, also rising 1.2% in March to reach a median of $516,000—up 20% year-on-year.
Despite the slowing pace of growth, buyer demand remains strong enough to keep upward pressure on prices, at least in the short term. However, conditions vary between suburbs, and sellers are encouraged to speak with local agents to align their pricing with specific area trends.
Among the standout suburbs for March were Fremantle (up 3.5% to $1,345,000), Yokine (up 3.3% to $1,017,000), Kensington (up 2.9% to $1,325,000), Hillarys (up 2.5% to $1,396,000), and Mandurah (up 2.4% to $545,000). Other high-growth areas included Kardinya, Ocean Reef, Aveley, Bicton, and Hamilton Hill, each seeing monthly increases of at least 2.2%.
While price increases are still strong, this growth is occurring at a slower rate than what was originally forecast for 2025, showing a more moderate pace than expected.
Homes Are Taking Longer to Sell
With more listings and moderated demand, homes aren’t flying off the market quite as fast. In March, both houses and units in Perth sold in a median of 13 days. While that’s the same as February, it’s slower than the previous year—houses are taking four days longer and units two days longer than in March 2024.
Still, some suburbs are moving quickly. Homes in Willagee and Hammond Park had the shortest selling times at six days, followed by Craigie, Orelia, Palmyra, and Parmelia at seven days. Lakelands, South Yunderup, Armadale, and Cooloongup also saw brisk activity, with homes selling in just eight days.
The length of time it’s taking to sell homes aligns with the expectation that the market would shift towards more balanced conditions in 2025, as buyers have more time to make decisions.
Rental Prices Climbing—But More Steadily
Renters are also feeling the impact of shifting market dynamics. Perth’s median rent for all dwellings rose 0.7% in March to $680 per week, which is 4.8% higher than the same time last year. Houses now rent for a median of $690 per week (up 1.5% month-on-month and 6.2% year-on-year), while unit rents held steady at $650 per week—still 8.3% above March 2024 levels.
Although rental prices are still increasing, the annual rate of growth has eased. This moderation is partly due to the same slowing population growth affecting the buying market, which is softening rental demand in some areas.
Despite that, there’s a wide range of conditions across suburbs. Some areas remain highly competitive, while others have seen rents dip slightly. Suburbs with the biggest rent increases in March included Spearwood (up 6.2% to $690), Tuart Hill (up 4.9% to $640), Victoria Park (up 4.8% to $650), Mosman Park (up 4.6% to $680), and Wembley (up 4.5% to $575).
The easing of rental price growth is following the prediction that rental growth would moderate in 2025. While rents are still rising, the pace has clearly slowed compared to 2023 and early 2024.
Rental Listings and Leasing Times Hold Steady
The number of rental properties available is also on the rise. By the end of March, 2,126 rentals were listed on REIWA, marking a 5.4% increase from February and a 14.9% jump year-on-year. Also, in March 2025, Perth’s rental vacancy rate reached 2.5%, the highest since September 2019.
Despite more choice, leasing times have held steady. The median time to lease a home in Perth was 15 days in March—unchanged from both the previous month and year.
Some suburbs, however, saw quicker leasing activity. Osborne Park and Wellard led the way with a median of eight days. Innaloo and Hamilton Hill followed at nine days, while Dianella averaged 10. Other suburbs like Alkimos, East Victoria Park, Eglinton, Fremantle, and Mosman Park also showed strong rental demand with leasing times between 11 and 12 days.
This aligns with expectations that the rental market would gradually rebalance in 2025, as the availability of properties grows and leasing times remain consistent.
The Value of Getting a Property Rental Appraisal in 2025
If one thing stands out from the data, it’s that the Perth housing market is constantly changing. What’s true this month might not be true next month. With that being the case, it’s become challenging for landlords and property investors to keep pace with such changing conditions and ensure they’re getting the best possible return on their properties.
That’s why expert rental appraisals come high on the list of must-haves in 2025. Their value cannot be overstated, regardless of whether you are just starting out or managing a growing portfolio. Covering rental calculations, analyses on your property, location, and ideal tenant market, along with a detailed appraisal report, it’s one of the simplest ways to make smarter property investment decisions in 2025.
Get a Free Rental Appraisal Instantly with No Obligation
If you’re planning the next move relating to your property decision, don’t make it without a clear view of your property’s potential. Start with a rental appraisal to make sure your decision is backed by insight—not guesswork. Ours is free, carries no obligation, and gives you the clarity you need to plan ahead. Just complete the form below to request one.
