According to REIWA’s quarterly update on the 2025 property market, Perth property prices are projected to rise by as much as 10 percent in 2025.
REIWA CEO Cath Hart said, “Perth’s median house sale price recorded 24.2 per cent growth in 2024, with the median house sale price rising from $600,000 at the end of 2023 to $745,000 in December 2024.”
“The median unit price increased 21.4 per cent to $500,000 over the same period, up from $412,000.”
“The median house and unit sale prices are expected to grow in 2025, but at a slower rate than 2024. Based on current conditions, REIWA is expecting between five and 10 per cent growth.”
Both the median sale prices for houses and units in Perth reached all-time highs at the end of 2024.
The median house price was 36.7 percent above the previous peak of $545,000, which was established in 2014.
The median unit price exceeded its earlier peak of $450,000, also set in 2014, in July and concluded the year 11.1 percent higher than that mark.
Hart stated that while moderate growth is expected for 2025, a few factors, including the state and federal elections and interest rates, could affect market activity in the first half of the year.
“We know market activity often slows in the lead up to elections as buyers and sellers wait to see the outcome. This is especially so when housing is one of the key policy areas — as will be the case in both elections, she added.
“The ongoing debate over when interest rates will be cut is currently causing some hesitancy in the market. Should interest rates decline in the coming months we are likely to see market activity increase.”
PRICE GROWTH
Hart noted that there have been significant discussions regarding declining prices and buyer’s markets on the east coast; however, the situation in Perth remains favourable for sellers, with further price growth anticipated.
“While the rate of price growth has slowed in the past couple of months, the underlying market fundamentals remain strong,” she said.
“This includes strong population growth, with WA recording 2.8 per cent growth in the year to June 2024, low unemployment and a strong economy.
“While some of the urgency seen in 2024 has eased slightly, demand for established housing remains high, with properties still selling quickly.
“However, rising prices mean affordability is likely to become a greater focus for buyers in 2025 and demand will remain strong for affordable suburbs and properties.
“Demand for units, which are generally more affordable entry points to the market than houses, is also likely to remain strong.”
RENTAL MARKET
In 2024, the Perth rental market softened due to shifts in supply and demand.
Hart said, “ After several years of strong growth, rent prices experienced periods of stability in 2024.”
“The vacancy rate rose from the record low of 0.4 per cent recorded in March, settling at 1.9 per cent at the end of the year.
“This is a result of changes to supply and demand. On the demand side, individuals adapted to increasing rent prices and the challenges of finding a property by opting for smaller and more affordable rentals. Additionally, there was a rise in the number of tenants per household. Many chose to stay at or return to their family home, or purchased a property to bypass the difficulties associated with renting.”
“We also saw new supply come to the market as a result of completed investor-owned new builds. In addition, some tenants finally had their new homes completed and moved out of their rental, which freed up some existing supply.”
Although the market softened throughout 2024, rental prices still achieved new record highs. The median rent for dwellings reached a peak of $650 per week in April and remained stable for the rest of the year, reflecting an increase of 8.3 percent compared to the end of 2023.
By the end of 2024, the median weekly rent for houses had reached a record $670, representing a 3.1 percent rise since the end of the September quarter and an 8.1 percent increase year-on-year.
Similarly, the median weekly rent for units also hit a new high, climbing 14.0 percent over 2024 to $650, which was 8.3 percent higher than at the conclusion of the September quarter.
Ms. Hart indicated that while further rent price growth is anticipated in 2025, the growth rate is expected to be lower than in 2024.
“In the Perth rental market, we are likely to see more periods of rent price stability,” she said.
“We expect the pressure in the rental market to continue to ease as more investor-owned new builds currently under construction are completed. However, with Eastern States investor activity declining, we are not expecting a surge in new supply towards the latter part of the year.
“With the changes seen in 2024, the vacancy rate is likely to continue its upward trend and we should reach a more balanced market sometime in 2025.
“The greatest demand for rental properties is likely to be for homes closer to the CBD, lifestyle hubs and key transport infrastructure. Areas on the outskirts of Perth, particularly where there is a lot of new supply, may see rent price growth soften.”
Median house sale price growth will differ by region, with southern areas likely seeing the strongest increases. Local job opportunities, population growth, and new supply will continue to shape market activity in regional centers.
“Bunbury was the top performer in 2025, with a 27.3 percent increase in its median house price,” Ms Hart said.
“A number of factors drove price growth in the area. Bunbury has good employment opportunities, while improving medical facilities and schools have helped retain people who move there, making it far less transient.”
“The Busselton airport has been a game changer. It means people no longer have to live where they work, and many FIFO families have moved to Bunbury to enjoy a South West lifestyle. It is also very affordable, particularly when compared with nearby Busselton and Dunsborough.”
“These drivers are likely to continue into 2025, and the Bunbury regional centre could see 10 to 15 per cent growth.”
Albany and Geraldton could experience 10 to 15 percent growth this year, while Broome, Busselton, and Esperance may see 5 to 10 percent growth.
“Every market is different, with different conditions,” Hart said.
“For example, Broome can be very seasonal and median prices fluctuate over the year. Busselton saw very strong growth in 2024, but its median house sale price is currently $860,000. It may reach an affordability ceiling over 2025 – our members report potential buyers are already looking to neighbouring areas, like Bunbury, for more affordable housing options.”
Kalgoorlie, Karratha, and Port Hedland are expected to experience modest growth, around five percent. Rent price growth will also differ across regional centers this year.
“Towards the end of 2024, some regional rental markets showed signs of easing. Others have the potential for more growth and, as with Perth, the rate of growth is likely to slow over 2025,” she added.
“The regional centres likely to see the most growth are Albany, Busselton, Esperance and Geraldton. Stability and declines are possible in Karratha and Port Hedland.”
“As conditions vary across WA, my advice is to speak to local REIWA agents to get an on-the-ground update of market activity.”
