Perth has emerged as Australia’s top-performing capital city for property price growth in the December 2025 quarter, reinforcing its position as one of the country’s most competitive real estate markets.
Supply Constraints and Strong Demand Drive Growth
According to data from the Real Estate Institute of Western Australia, the city’s median house price rose by 9.9 percent over the quarter, reaching $940,000. On an annual basis, this reflects a strong 17.9 percent increase, highlighting sustained upward momentum driven by solid market fundamentals.
Apartments and Units Gain Momentum
The unit and apartment sector has seen even sharper gains. Median prices for these property types climbed 11.5 percent over the quarter to $680,000, delivering an impressive 25.9 percent increase year-on-year. This trend signals a growing shift among buyers toward more affordable housing options as detached home prices continue to rise.
Supply-Demand Imbalance Intensifies Competition
From a market perspective, the key driver remains a persistent imbalance between supply and demand. Listings declined in the second half of 2025, while buyer activity stayed strong. This has created intense competition, with properties selling rapidly, often in just over a week, highlighting the urgency in today’s market.
Short-Lived Relief as Listings Tighten Again
Earlier increases in listings temporarily eased conditions, but that window was short-lived. As supply tightened again, price growth accelerated, particularly across middle-ring suburbs, which continue to attract buyers seeking value and accessibility.
Broad-Based Growth Across Perth
Importantly, growth has been widespread, with all major regions of Perth recording increases. This broad-based performance suggests the current upswing is not isolated, but reflects deeper, sustained demand across the entire metropolitan area.
Strong Opportunities for Buyers, Sellers, and Investors
From a professional standpoint, this market presents both opportunity and urgency. Buyers need to act decisively, while sellers are in a strong position to leverage competition. Investors are increasingly drawn to Perth for its relative affordability compared to other capital cities and its strong growth trajectory.
