Units Projected to Outpace Houses in Price Growth for 2025: REIWA Market Forecast

The latest quarterly property market update from the Real Estate Institute of Western Australia (REIWA) reveals that unit prices are expected to outperform house prices in 2025.

REIWA President Suzanne Brown stated that while the median house sale price is tracking towards 10 per cent annual growth, unit prices are projected to grow by 15 per cent under current market conditions.

“For a period, the median sale price for units—which includes villas, townhouses, home units, and apartments—lagged behind house prices. However, over the past 12 months, that gap has narrowed significantly,” Ms Brown explained.

She noted that the surge in house prices has prompted greater interest in the unit market, largely due to its relative affordability.

“When breaking down the unit segment, we’re seeing the strongest price growth in villas and home units, followed by townhouses. Despite the limited supply of new apartment developments, growth in this segment has been more subdued,” she said.

“Villas and townhouses are highly desirable, as many buyers value features such as private courtyards and adjacent garages. Home units also appeal to owner-occupiers due to their affordability and placement within lower-density complexes.”

Ms Brown emphasised that the data suggests a shift in consumer preference towards medium-density housing, and encouraged policymakers to consider this in future planning strategies to help address Perth’s housing challenges.

While the outlook remains positive, she cautioned that several factors could influence price growth in the second half of the year.

“Ongoing economic uncertainty tied to the Trump administration’s trade tariffs continues to affect consumer sentiment, particularly around job security. This naturally impacts buyer and seller behaviour,” she said.

“Conversely, additional interest rate cuts could stimulate the market further by increasing borrowing capacity, particularly for more affordable properties such as units, and in outer suburbs.”

Perth Property Price Performance – June 2025 Quarter

Preliminary data indicates that Perth’s median house sale price rose 1.4 per cent in the June 2025 quarter, increasing from $775,000 in March to $786,000.

The median unit sale price rose by 2.9 per cent over the same period, from $525,000 to $540,000—setting a new record high for both sectors.

Ms Brown noted that while Greater Perth is experiencing robust growth, individual suburbs show varying results.

“For instance, while Perth’s median house price increased by 16.4 per cent over the past year, the top 10 suburbs recorded growth exceeding 28 per cent,” she said.

“In the unit market, the median sale price increased by 20.0 per cent over the financial year, with the leading 10 suburbs showing growth over 32 per cent.

“However, not all areas are experiencing price increases—some suburbs have seen a decline in their median house price. This highlights the importance of seeking advice from a local REIWA agent to better understand specific market conditions.”

Perth Rental Market Overview

Perth’s rental market also experienced mixed results in the June 2025 quarter. The median weekly rent for houses fell by 2.2 per cent, from $695 to $680. In contrast, the median weekly rent for units rose 1.5 per cent, from $650 to $660.

On an annual basis, house rents increased by 4.6 per cent, while unit rents grew by 10.0 per cent.

Ms Brown said that while rental price growth has eased, REIWA still anticipates further increases over the course of 2025, albeit at a slower pace than in previous years.

“The overall trajectory remains upward, but the rate of growth has clearly moderated,” she said.

“For example, median weekly house rent rose 4.6 per cent in 2024–25, compared with 12.1 per cent the previous year, and 16.0 per cent the year before that. Unit rents showed similar trends, increasing by 10.0 per cent in 2024–25, following growth of 14.3 per cent and 19.3 per cent in the two preceding years.”

The easing in rental price growth has been attributed to increasing supply and a softening in demand.

Despite these shifts, challenges persist.

“Although there is more rental stock available and price growth has moderated, conditions remain highly localised,” Ms Brown said.

“Inner-city areas continue to see strong demand and rising rents. However, outer suburbs show more varied results. Modern, well-maintained properties in these areas are still competitive, while older, dated homes may experience declining rents.

“In locations where there has been a surge in new rental supply, landlords may need to adjust their expectations and reduce asking prices to attract tenants.

“Again, speaking with a local REIWA property manager is key to gaining accurate insights into area-specific conditions.”

Regional WA Market Outlook

Most regional centres across Western Australia are also forecast to experience median house price growth in 2025.

“Based on current indicators, Albany and Geraldton are expected to lead the regions, with growth potentially reaching up to 25 per cent,” Ms Brown said.

“Bunbury, Busselton, and Karratha are likely to achieve growth of around 15 per cent. Meanwhile, Broome, Esperance, and Kalgoorlie are forecast to grow by 2 to 5 per cent.

“In contrast, the Port Hedland region may record a decline in median house prices over the year.”

Rental price trends across regional areas will continue to vary.

“Each regional market is driven by different factors,” she explained.

“Broome’s rental market, for example, is quite seasonal—rents are currently rising but tend to ease towards the end of the year.

“We’re seeing rental growth slow in Busselton, Kalgoorlie-Boulder and Port Hedland, while markets in Albany, Bunbury, Geraldton and Karratha remain relatively strong.

“Esperance rents are trending down at present, although this market tends to be volatile due to the small number of leases, which can skew the median.”

Final Thoughts

“As conditions continue to evolve throughout WA, it’s vital for those looking to buy, sell, invest, or rent to seek localised, expert guidance,” Ms Brown concluded.

“REIWA members have the insight and experience to provide accurate, suburb-specific advice to support confident property decisions.”