House prices in Perth’s inner suburbs rose faster than in outer areas during the June 2025 quarter, according to the latest Real Estate Institute of Australia (REIA) Real Estate Market Facts.
The median house price in Perth Inner increased 4.7% over the quarter, compared with gains of 1.1% in Perth Middle and 1.3% in Perth Outer. Across the city, the overall median house price lifted 1.9% to $815,000 for the three months to June – up 9.2% over the year.
REIWA president Suzanne Brown (pictured) said the inner-city demand reflected economic stability and lifestyle preferences.
“WA’s economy remains strong,” Brown said in a REIWA report. “The job market is steady, and people continue to want to live and work in areas close to the CBD and key lifestyle attractions. Living close to the convenience of the city, and reduced travel times, remain a factor for buyers and renters alike.
“Demand for these homes, to rent or buy, remains strong, putting upward pressure on prices for homes close to the heart of Perth.”
She noted that Perth has attracted strong eastern states investor interest since 2023, though outer suburbs are seeing more rental listings. She expects that trend to be temporary, with population growth and new first-home buyers entering the market from October under the expanded First Home Guarantee Scheme.
Brown also highlighted that with variations across suburbs and regions, the expected influx of first-home buyers will add to market complexity. For brokers, this highlights the importance of staying across local market shifts to better guide clients on affordability and lending options.
Gavalas added that investors continue to value Perth for its stability and diversity, noting the city’s balance of capital growth potential and rental yields. With listings at record lows and properties selling within days, competition for investment-grade stock is intensifying.
House prices also rose in key WA regional centres. Bunbury was up 2.2% and Albany up 7.2% over the quarter, while Broome edged higher by 0.1%.
For other dwellings in Perth (units, townhouses, apartments, terraces), the median price rose 1.8% in the quarter to $570,000, a 16.3% increase year-on-year. Gains were led by Perth Middle (+3.0%) and Perth Outer (+5.1%), while prices in Perth Inner were stable.
In regional markets, Albany saw a 1.6% rise in other dwellings, while Bunbury (-9.0%) and Broome (-11.7%) recorded declines.
Perth’s rental market showed modest changes, with the median weekly rent for a three-bedroom house up 1.5% to $660. Rents for three-bedroom houses were stable across Inner, Middle, and Outer Perth.
Regional cities, however, recorded sharper increases: Bunbury rents rose 8.3%, Broome 14.3%, and Albany 7.3% over the quarter.
The rental vacancy rate in Perth edged up to 2.7%, 0.2 percentage points higher than March and 2.2 points above the same quarter in 2024.
Even so, with Perth’s median dwelling value at $841,928 – sixth among capital cities – and gross rental yields at 4.2%, the city remains relatively affordable while still delivering strong returns for investors.
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