As spring progresses, October is proving to be another pivotal month for the Perth property market. The key drivers observed throughout winter—tight housing supply, robust population growth, and increasing market confidence—remain prevalent, and in some areas, are showing even greater strength.
Market Overview
The Perth property market continues its upward trajectory. In September alone, dwelling values increased by 1.6%, pushing the median price to approximately $855,000. Over the past three months, prices have climbed around 4%, while annual growth is tracking at an estimated 7–8%.
Notably, unit prices are beginning to outpace house prices on a quarterly basis. This shift reflects a growing focus on affordability among buyers, as well as a rising interest from investors seeking higher-yielding assets.
Listings and Buyer Demand
Housing supply remains critically low, with only 2,774 active listings across the metropolitan area recorded this week—a decline of more than 30% compared to the same period last year.
Despite the constrained supply, transaction volumes are holding steady at approximately 800 sales per week, indicating that demand is readily absorbing quality listings. Properties are selling at a rapid pace, often within 10 days, particularly in family-oriented suburbs where both upgraders and investors are actively competing.
Rental Market Conditions
The rental market continues to face significant supply shortages, with vacancy rates lingering near historic lows. Rental prices are rising consistently, and gross yields remain attractive—typically between 4% and 5%, depending on the property type and location.
Affordability challenges persist for tenants, with little indication of short-term relief. Landlords, on the other hand, are benefiting from strong returns and minimal vacancy periods between leases.
Construction and Supply Challenges
The housing supply imbalance remains a key issue. While input costs in the construction sector are beginning to stabilise, new approvals and completed dwellings are still falling short of the levels needed to keep pace with population growth.
This supply shortfall is expected to continue well into 2026, placing ongoing pressure on both prices and rental availability.
Outlook for the Remainder of 2025
As we enter the final quarter of the year, the outlook for Perth’s property market remains positive. Although price growth may moderate slightly, the strongest performance is expected in well-positioned units and middle-ring family suburbs.
Properties priced between $600,000 and $1.2 million are seeing particularly strong competition, and with no significant increase in listings anticipated, sellers continue to hold a favourable position in the market.
From an investment perspective, Perth remains one of the most compelling markets nationally, supported by high yields, population-driven demand, and consistent capital growth.
Strategic Advice Moving Forward
For those considering a property move—whether upgrading, investing, or entering the market for the first time—current conditions represent a strategic opportunity ahead of the summer period, which may bring further upward pressure on prices.
At Strategic Property Group, we are committed to supporting our clients with expert guidance and local market insight to ensure informed and confident decisions in this evolving landscape.
