Perth Property Market Rebounds with Strong Growth – July 2025

Perth, the capital of Western Australia, is once again making headlines in the national property landscape. Following a brief period of negative movement in late 2024, the city’s housing market has regained momentum, demonstrating a marked resurgence in capital gains.

In June, Perth’s housing market posted renewed strength, with dwelling values rising by 0.8% over the month. This uplift has significantly bolstered quarterly performance.

• Quarterly Growth: Dwelling values in Perth have risen by 2.1% over the past three months—marking the highest quarterly increase since October of last year.

• Annual Performance: Over the financial year, dwelling values have climbed by 7.0%.

• Capital Gains: For the average property owner, this annual growth equates to an estimated increase of $54,000 in property value.

Continued Upward Pressure on Values

The ongoing growth across monthly, quarterly, and annual metrics indicates sustained upward pressure on Perth housing values. The 7.0% annual increase notably exceeds the city’s 10-year average growth rate of 4.8%, further highlighting the market’s current strength.

As of July 2025, the median dwelling value in Perth surpasses $800,000.

• Detached Houses: Representing the dominant housing type in the market, standalone homes now hold a median value of over $855,000, a reflection of strong ongoing demand.

• Units: Units remain a vital segment of the market, with a median value of more than $611,000, providing a more accessible option for entry-level buyers and downsizers alike.

Rental Market Performance and Investor Outlook

Perth remains an attractive destination for investors, particularly those prioritising cash flow.

• Gross rental yields for units stand at a robust 5.6%, underpinned by a strong 7.5% annual rise in unit rents, indicating high demand within this segment.

• House rents have also shown solid growth, increasing by 4.4% over the year.

This strong rental performance reinforces Perth’s appeal to yield-focused investors, especially in the context of ongoing national housing undersupply.

Market Activity and Broader Conditions

Transaction volumes remain elevated, with nearly 52,000 properties sold over the past 12 months.
While annual sales volumes have declined marginally by -1.9%, this is viewed as a stabilisation rather than a downturn, especially when compared to lower national stock levels. Buyer and seller confidence across the Perth market remains high.

Longer-Term Outlook

Looking ahead, several macroeconomic factors are likely to support continued growth in Perth’s property market. Anticipated interest rate reductions are expected to improve borrowing capacity and lift consumer sentiment. This is further strengthened by a tight labour market, which continues to underpin household confidence.

Additionally, persistent undersupply of new housing across the state is expected to place ongoing upward pressure on property values, providing a strong foundation for long-term capital growth.