Perth’s housing market remains one of Australia’s strongest, with the Real Estate Institute of Western Australia (REIWA) forecasting a 10% annual rise in median house prices by the end of 2025.
REIWA president Suzanne Brown (pictured) said sales data confirms the market is tracking in line with earlier projections, driven by population growth, interest rate cuts, and the expansion of the Home Guarantee Scheme.
“House and unit price growth in Greater Perth over 2025 has largely followed REIWA forecasts made at the beginning of the year,” she said. “We have seen sale price growth in each quarter, and over the year unit sale price growth has outpaced growth in houses.”
The trend reflects broader national momentum – Domain’s September quarter data shows property values rising across all capitals, with Perth’s $981,000 median putting it on track to join Australia’s million-dollar cities by 2026.
According to Brown, Perth’s unit market is now leading growth, reversing earlier trends when house prices grew faster.
“Previously, the median sale price in the unit market, which includes villas, townhouses, home units and apartments, was growing at a slower rate than the median house sale price. We have seen that reverse over the last year or so, with unit price growth now outstripping house price growth,” she said.
“We believe strong sale price growth in units and townhouses is occurring as buyers seek more affordable housing options in well located areas. Even with unit prices now increasing at a faster pace than houses, there are many suburbs offering units for sale within price points attractive to both first home buyers and investors.”
Brown said this trend is particularly significant for first-home buyers, who rely on government incentives capped by price thresholds.
“If you want to live close to the city, at a price point at or below the Perth median, there are units, townhouses and apartments available well below first-home-buyer thresholds in established inner suburbs, for example Maylands and Victoria Park,” she said.
Brown said demand for villas, townhouses, and home units remains strong among those seeking lifestyle convenience without sacrificing proximity.
“We know people like villas and townhouses; people often prefer to have their own courtyard and a garage next to their home. Home units are also attractive to home owners as they tend to be affordable and in lower-density developments,” she said.
While price gains are continuing, Brown said the pace of growth has slowed compared to last year’s record surge.
“It seems odd to say when we are seeing new record highs, but 10% growth actually represents a slower rate of growth in sale prices compared to last year,” she said. “In the year to December 2024, the median house price in Greater Perth increased by 25%.
“The market saw prices surge in 2024. The rate of growth has moderated in 2025 as factors such as affordability, a higher entry price level and some caution enter the market. The outlook remains for further price growth as the fundamentals of high buyer demand and low stock remain.”
At the end of the September quarter, Perth’s median house price reached a record $810,000 – up 8% since the start of the year, with a further 2% gain forecast by December. The median unit price climbed 13% to $565,000, with REIWA expecting 15% annual growth by the end of 2025.
Brown said while there’s been a minor uptick in new home completions, the construction pipeline remains tight.
“Whilst there has been a recent small uptick in new home completions, until there is a substantial increase in the number of new homes built and completed, we expect buyer demand to remain strong and supply to remain constrained,” she said.
Perth’s rental market remains tight, though growth in median rents has slowed compared to last year.
REIWA forecasts show median weekly rents will finish 2025 around $700 for houses and $675 for units, representing about a 5% annual increase.
“This is a 5% increase from December last year, but the rate of increase is slower than the previous year. In the 12 months to December 2024, rents rose by just over 8% (8.1%),” Brown said.
“The overall annual trend is still upwards, and again, until we see significant new housing stock we see little rent relief for tenants. Whilst there is more rental stock available in the outer suburbs, the rental market close to Perth remains very tight.”
Perth’s property market continues to outperform amid tight supply, strong migration, and rising demand, with REIWA forecasting 10% annual house price growth and 15% for units. As affordability pressures steer buyers toward smaller dwellings, units and townhouses are leading the next phase of Perth’s property upswing.
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