Perth’s property market is on track for a 10% rise in house prices in 2025, while unit prices could exceed that according to the latest quarterly forecast from the Real Estate Institute of Western Australia (REIWA).
“House prices were currently trending towards 10% growth, while unit prices were trending above 10%,” REIWA president Suzanne Brown (pictured) said, but added that global economic shifts could influence this outlook.
This house price forecast is notably more optimistic than KPMG’s prediction, which anticipates a more modest 4% rise for Perth houses and 5% growth for units in 2025.
“The most significant issue facing the property market at the moment is the Trump tariffs,” Brown said. “They have the potential to create a recession in the United States and impact economies around the world, particularly some of our most significant trading partners.”
Despite Western Australia’s relatively low direct exposure to the US market, concerns over employment security and potential trade wars are affecting buyer and seller sentiment.
“Such economic volatility often sees people become more cautious,” Brown said.
Brown said several interest rate cuts were anticipated this year, which under normal circumstances would “boost consumer confidence, increase borrowing power and put some upward pressure on prices.”
However, “if economic uncertainty remains high, we expect the effect on property prices to be fairly low,” she said.
In the March quarter, Perth’s median house sale price rose 2.7% to $770,000, while the median unit price jumped 4% to $520,000. Both figures represent record highs for the city.
“The frenzied buyer behaviour that characterised most of 2024 has eased,” Brown said.
Buyers are taking more time and being more selective with their purchases.
“Sellers should not expect their home to sell at the first home open or to achieve the sensational price outcomes seen last year,” Brown said.
“We are seeing properties take longer to sell, price growth slow and, in some suburbs, sellers are having to discount their original asking price to achieve a sale.”
Perth’s median weekly house rent rose 3% to $690 in the March quarter, while unit rents held steady at $650.
“There were significant changes to conditions in the rental market over the past 12 months,” Brown said.
Population growth has slowed, household sizes increased, and some residents have opted out of renting entirely.
The increase in new supply—particularly in outer suburbs—has helped relieve pressure, she said.
“As a result, we’ve seen the pressure on rent prices ease and the vacancy rate increase,” Brown said.
Still, “conditions vary significantly from suburb to suburb,” with demand remaining high closer to the CBD.
REIWA expects regional centres to experience solid growth in 2025.
“Based on current conditions, Albany, Busselton and Geraldton are likely to be the top performers this year, with median house sale price growth in the range of 15% to 20%,” Brown said.
Bunbury and Karratha are forecast for around 10% growth, while Kalgoorlie and Broome could see 2%-5% growth.
Esperance is expected to show very low growth, and Port Hedland may see prices decline.
“Many of the regional centres are on track to record rent price growth up to 5%,” Brown said.
However, lower growth—or even price declines—are possible in places like Bunbury, Karratha and Port Hedland.
“Conditions vary across WA,” Brown said. “My advice is to speak to local REIWA property managers to get an on-the-ground update of market activity if you’re looking to buy, sell, invest or rent.”
