Western Australia’s property market has emerged as one of the strongest in the country, offering a mix of affordability, lifestyle appeal, and exceptional growth potential. 

Whether you’re a seasoned investor or a first-time buyer, understanding the latest trends and forecasts is crucial to making the right decisions.

In this article, we’ll break down how the Perth and WA property market performed in 2024 and highlight expert insights and top suburbs to watch in 2025, helping you identify the best opportunities across the state.

What did the WA property market look like in 2024?

Western Australia’s property market experienced an exceptional year in 2024, led by Perth, which was the strongest-performing capital city in the country. According to CoreLogic data, Perth property prices surged by 19.1 per cent over the year, reaching a record-high median price of $813,016, making it more expensive than Melbourne. House prices rose 18.7 per cent annually, while unit prices jumped an impressive 22.7 per cent. 

Regional WA also posted strong gains, with property values increasing by 16.1 per cent over 2024. This reflects the widespread appeal of the state’s property market, buoyed by affordability and robust demand. 

Although the pace of growth slowed in the second half of the year, Perth remained Australia’s fastest-growing property market, solidifying its position as a standout performer. Perth’s affordability, in particular, has been a key driver, with senior PropTrack economist Eleanor Creagh noting that housing values in the city are still comparatively low compared to east coast capitals. “After a decade of underperformance relative to east coast capitals, there’s an element of catch-up at play,” she explained.

The recent boom has brought about significant change after a long period of relative stagnation in Perth’s property market. Since the onset of the pandemic, prices have risen 77 per cent, with gross rental yields reaching 4.2 per cent as of December 2024—the highest among the five major capitals. However, a clear lift in listings during the second half of the year provided buyers with more choice and tempered the rapid pace of price growth.

Western Australia’s property market, and Perth in particular, remains attractive due to its combination of affordability, strong rental yields, and sustained demand. With its strong 2024 performance, the state has firmly established itself as one of the most dynamic real estate markets in Australia.

Perth and Western Australia property market forecast and house price expectations 2025

Perth is widely expected to remain a standout performer in 2025, although opinions vary on just how strong the market will be. 

Westpac forecasts a more moderate gain of 6 per cent, noting that Perth’s pre-COVID affordability advantage has largely diminished. NAB is slightly more optimistic, projecting an 8.3 per cent increase, while Domain forecasts growth of between 8 and 10 per cent, suggesting another year of solid performance for the state’s capital.

Propertyology offers a bullish outlook, predicting Perth property prices could rise by between 10 and 14 per cent in 2025. They note that Perth’s median house price has already risen by 50 per cent over the past three years, including a 20 per cent surge in 2024. With housing supply still tight and local confidence running high, Propertyology expects the market to continue its upward trajectory, albeit at a slower pace toward the end of this growth cycle. However, they caution investors to monitor external factors like China’s economic actions and fluctuations in iron ore prices, which could impact local economic stability.

SQM Research’s managing director Louis Christopher is even more optimistic, forecasting growth of between 14 and 19 per cent for Perth in 2025. He notes that Perth’s housing market is not yet at the affordability limits seen in 2013, leaving room for further price growth. Christopher highlights mixed leading indicators, with asking rents beginning to slow but rental vacancies remaining extremely tight at just 0.6 per cent. “Stock on market is clearly telling us there are major listing shortages, which implies there are more price rises to come in this current boom,” he explained, suggesting that any slowdown in rent growth may only be a temporary lull.

With forecasts ranging from steady gains to another year of double-digit growth, Perth’s property market is set to remain one of Australia’s most dynamic in 2025, underpinned by tight supply and ongoing demand.

What's the WA apartment market like?

Perth’s apartment market outpaced houses in 2024, with unit prices surging by 22.7 per cent compared to an 18.7 per cent gain for houses, according to CoreLogic data. As property prices in Perth continue to rise despite high interest rates, increased buyer competition at the more affordable end of the market has driven strong demand for apartments. Units have become an attractive option for both investors and owner-occupiers seeking value in a market experiencing rapid price growth.

Rental performance in Perth’s apartment market was equally impressive, with median weekly rents rising by 14.0 per cent to $650 in 2024, according to Holdsworth Real Estate. While the city’s rental vacancy rate increased from a critically low 0.4 per cent in March to 1.9 per cent by December, this was largely due to the completion of investor-owned new builds and tenants transitioning into newly constructed homes, freeing up existing stock. Despite this slight easing in vacancy rates, Perth’s apartment market remains tight, supporting continued rental and price growth heading into 2025.

What are the best areas to buy property in Perth and Western Australia in 2025?

Whether you're looking to buy an investment property in Perth or Western Australia, or you're seeking your next home, here are ten top WA suburb picks for 2025 as recommended by some of the country's top real estate experts. 

Scarborough, WA 6019

Scarborough is one of Perth’s most iconic coastal suburbs, with house prices growing 29.0 per cent in 2024 to a median of $1,225,000, while units climbed 15.0 per cent to $646,000. REA’s Hot 100 Suburbs to Watch 2025 highlights the suburb’s rejuvenated foreshore, luxury apartment developments, and proximity to Perth CBD as major drawcards. With its thriving beachside dining scene, upgraded public amenities, and family-friendly parks, Scarborough remains a prime location for investors and lifestyle buyers alike.

Bassendean, WA 6054

Set on the Swan River, Bassendean blends historic charm with modern housing options, recording house price growth of 15.0 per cent and a 42.0 per cent jump for units in 2024. REA’s Hot 100 notes the suburb’s federation-style homes, vibrant arts scene, and strong transport connectivity via rail and road. With its mix of character homes, newer apartments, and family-friendly amenities, Bassendean continues to attract a diverse community of residents and investors.

Broome, WA 6725

Broome, one of Australia’s most iconic tourist destinations, saw house prices rise 27.0 per cent in 2024 to a median of $772,500, while units grew by 12.0 per cent. According to the REA Hot 100, Broome’s stunning natural beauty, growing economy, and relaxed lifestyle make it increasingly popular among permanent residents. Its pristine beaches, vibrant local markets, and strong connection to Indigenous culture create a unique appeal for both investors and families.

Mount Lawley, WA 6050

Mount Lawley’s historic charm and proximity to Perth CBD drove strong house price growth of 25.0 per cent in 2024, with the median reaching $1,600,000. REA describes it as a distinguished suburb with excellent schools, vibrant nightlife, and high rental yields of 6.3 per cent for units. With its mix of heritage homes and modern conveniences, Mount Lawley is a favourite for both families and professionals.

West Leederville, WA 6007

West Leederville offers a mix of urban living and suburban tranquillity, with house prices rising 3.0 per cent in 2024 to a median of $1,500,000. REA’s Hot 100 highlights the suburb’s proximity to Lake Monger, two train stations, and top schools, making it ideal for families and young professionals. Its blend of renovated heritage homes and modern apartments ensures broad appeal for investors and residents alike.

Armadale, WA 6112

Armadale saw extraordinary growth in 2024, with house prices increasing 40.7 per cent to a median of $550,000. According to Smart Property Investment’s Fast 50 report, this southeastern suburb offers a diverse property market, blending affordable housing with new developments. With a strong community spirit, cultural diversity, and access to natural parklands, Armadale is a standout option for both first-home buyers and investors.

Calista, WA 6167

Calista, located south of Perth, recorded exceptional house price growth of 43.6 per cent in 2024, bringing its median to $560,000. The Fast 50 report notes its peaceful lifestyle, green spaces, and affordability as key attractions for families and retirees. Proximity to the Kwinana Golf Course and rail connections make it a practical choice for investors and residents seeking value in the Perth property market.

Huntingdale, WA 6110

Huntingdale is a family-friendly suburb in Perth’s southeastern region, with house prices rising 26.9 per cent in 2024 to a median of $660,000. The Fast 50 highlights its semi-rural charm, local amenities, and affordability as major drawcards. With easy access to schools, parks, and the city, Huntingdale is an attractive choice for both investors and first-home buyers.

Lockridge, WA 6054

Lockridge recorded house price growth of 32.7 per cent in 2024, reaching a median of $560,000. SPI cites its affordability, proximity to Perth CBD, and nearby Swan Valley attractions as key factors driving demand. The suburb offers a mix of family-friendly amenities, schools, and local businesses, making it ideal for buyers seeking a suburban lifestyle with urban convenience.

Pearsall, WA 6065

Pearsall, located just 20 kilometres north of Perth, saw house prices grow 25.4 per cent in 2024 to a median of $737,500. The Fast 50 highlights the suburb’s rapid growth, local parks, and excellent amenities, including schools and shopping centres. With its mix of affordability and convenience, Pearsall is becoming increasingly popular with families and young professionals.