Perth property market data, trends, forecasts

Perth property market news - key takeaways

• Price growth continues: Perth's housing market remains the national standout. Cotality's latest figures show a +0.9 per cent increase in July 2025, marking the strongest monthly growth since last September. The unit sector is leading the charge, with values climbing +10.4 per cent over the past year, outpacing the +6 per cent rise in house values.
• Supply remains constrained: Perth's property market is feeling the squeeze with listings well below the five-year average. This limited supply is helping to sustain price growth.
• Quick sales in the market: Homes in Perth are selling fast. The median days on market was just 15 days in the three months to July 2025, highlighting strong buyer demand and the importance of accurate pricing by vendors.
• Stable rental conditions: Perth's rental market remains tight. Weekly rents are around $755, and the vacancy rate is a low 0.7 per cent. Despite a slight cooling in rental demand, the market is still competitive.
• Rate cut boosts sentiment: The RBA's recent rate cut to 3.60 per cent in August 2025 is expected to improve borrowing capacity and stimulate market activity, offering a positive outlook for the Perth property market.

Perth property price movements

The Perth property market is on the rise, with dwelling values climbing steadily. While some buyers face affordability challenges, strong demand and limited supply are pushing prices higher.

Perth property prices - July 2025

Perth's property values have seen a notable boost, with a monthly increase of +0.9 per cent and quarterly growth of +2.6 per cent. Over the past year, property values in Perth have surged by +6.5 per cent, bringing the median value to $831,921.

^{Source: Cotality}

This steady growth in Perth's property market reflects a broader national trend of rising dwelling values. The city's property market has been the strongest among the capitals for some time, driven by a mix of low supply and increasing demand. Historically, Perth has shown periods of resilience and the ability to outperform even when national trends are mixed.

House prices in Perth

In the Perth housing market, house prices have risen by +0.9 per cent over the past month and +2.6 per cent over the quarter. Annually, house prices have increased by +6.0 per cent, with the median house price now at $869,689.

^{Source: Cotality}

The Perth housing market continues to thrive due to strong local fundamentals and limited supply. Investor interest and population inflows have supported this growth. Despite mounting affordability constraints, Perth house prices remain attractive compared to other major cities, making it a key player in the national housing landscape.

Unit prices in Perth

Perth unit prices have shown strong performance, with a monthly increase of +1.3 per cent and a quarterly rise of +2.7 per cent. Over the past year, unit values have surged by +10.4 per cent, bringing the median unit price to $615,528.

^{Source: Cotality}

The significant growth in Perth unit prices highlights the shift towards more affordable housing options. The unit market has been outperforming houses in terms of growth, driven by improved affordability and increased investor activity. This trend is expected to continue as the market adapts to changing economic conditions and consumer preferences.

Perth property market forecasts 2025-2026

Australia’s big four banks regularly release house price forecasts as part of their economic research. This helps them make informed mortgage-lending decisions, manage risk, and demonstrate their market expertise. Here’s what they expect for 2025 and 2026 across the country.

^{Sources: Westpac Housing Pulse, NAB Residential Property Survey, ANZ Australian Housing Chartpack, Commonwealth Bank Economic Insights}

Perth is predicted to see relatively strong growth compared to other major cities. These Perth property market predictions indicate that the city will continue to experience price increases, driven by factors such as population inflows and a tight rental market.

Perth home price forecasts 2025

Westpac anticipates a +4.0 per cent rise in Perth property prices for 2025, while NAB expects a +4.7 per cent increase. ANZ is slightly more optimistic, forecasting a +6.1 per cent growth. 

These predictions are based on expected continued population growth and a tight housing supply, which are likely to keep demand high. Additionally, the easing of interest rates by the RBA is expected to improve borrowing capacity, further supporting price growth in Perth.

RBA cash rate forecast 2025

On 12 August 2025, the RBA reduced the cash rate by -0.25 percentage points to 3.60 per cent. The Bank cited inflation returning to the 2–3 per cent target band, softer labour-market readings, and a subdued demand backdrop as key reasons for easing, while noting that uncertainty remains high. Here’s where the major banks think the cash rate is heading next:

• CBA: Two more cuts in 2025 (September and December), ending 2025 at 3.35 per cent, then two cuts in Q1 2026 to 2.85 per cent.
• Westpac: No September cut; two cuts by early 2026 (November 2025 and February 2026), to 3.10 per cent.
• NAB: One cut in September 2025 and another in February 2026, to 3.10 per cent.
• ANZ: Two cuts in 2025 (September and November), then two in Q1 2026, to 3.10 per cent.

What this means for the Perth market

Perth often follows its own path, influenced by the resources cycle and population inflows, but lower rates still provide a boost. With investors and interstate buyers already active and stock scarce, additional easing should maintain the upswing. 

Historically, Perth can outperform even when the national rate story is mixed; layering cuts on top of strong local fundamentals suggests continued price leadership into 2026.

Perth house prices graphs and charts

Perth house price growth over the last 5 years has been impressive. In July 2025, prices rose by +1.0 per cent, with a +2.6 per cent increase over the last three months and a +6.5 per cent rise over the past year. This upward trend has pushed Perth to a record high, showcasing the city's strong market performance.

Cotality’s analysis shows Perth has consistently outperformed other capitals since 2023. The city has seen strong quarterly growth, reaching a clear record high on the chart. Rapid population growth, particularly in 2023–24 at +3.1 per cent, has added significant demand pressure to an already undersupplied market.

Perth property prices graph over 30 years

Perth property growth last over the 10 years has been shaped by various economic factors, including the end of the mining boom and its subsequent recovery. The city has experienced both rapid growth and downturns, but recent years have seen a resurgence due to tight housing supply and strong migration.

Over the past three decades, Perth's property market has been influenced by cycles of boom and bust, largely due to the mining sector. Today, homeowners are benefiting from a market that continues to appreciate, driven by migration and limited supply. However, buyer sentiment remains cautious due to higher interest rates and borrowing constraints, which could slow future growth.

Perth selling statistics

In July 2025, Perth's real estate market showed signs of cooling. Sales volume dropped compared to the previous year, and properties are taking longer to sell. This shift hints at a change in buyer sentiment, with a more cautious approach to purchasing.

Perth sales volume and days on market

Perth saw a -4.1 per cent drop in sales volume in July 2025 compared to the same month last year. The median days on market for properties in Perth increased to 15 days, up from 9 days in July 2024.

^{Source: Cotality}

This increase in sales volume points to strengthening demand in the Melbourne property market, standing out against the national trend where some areas experienced declines. The longer median days on market suggest that while properties are selling, buyers are taking a bit more time to decide, possibly due to more options or careful financial planning.

Perth new and total listings

In July 2025, new listings in Perth fell by -16.8 per cent compared to the previous year, while total listings dropped by -3.8 per cent.

^{Source: Cotality}

The dip in total listings, along with a sharp fall in new listings, indicates that supply is clearly not keeping up with demand in Perth. The lack of new stock coming to the market could also suggest that some sellers are waiting things out until the spring selling season. 

Perth vendor discount

Vendor discount measures the percentage difference between the initial asking price and the actual sale price, providing insight into buyer bargaining power. Tighter discounts suggest sellers are firm on price, while wider discounts indicate a softer market with more aggressive bargaining.

^{Source: Cotality}

In July 2025, the median vendor discount in Perth was 2.9 per cent, showing a slight tightening from previous months. This suggests sellers are holding firmer on their asking prices, possibly due to confidence in their property's value or as a response to the slower market conditions.

Perth property investing

Perth's rental market is currently under pressure, with low vacancy rates and strong demand shaping the scene. Although rental growth has slowed, the market remains competitive due to limited supply keeping prices high. Let's delve into the statistics on rental rates, yields, and vacancy trends to understand the current conditions in Perth.

Perth rental market

Rental rates in Perth have grown significantly, with notable annual increases for both houses and units. Gross rental yields in Perth are relatively high compared to other capitals, highlighting the strong demand for rental properties. These trends point to ongoing challenges and opportunities within Perth's rental market.

^{Source: Cotality}

Perth's rental market is marked by strong demand and limited supply, creating competitive conditions for tenants. The annual rent change for houses in Perth was 4.7 per cent, while units saw a more substantial increase of 7.4 per cent. Despite the high demand, rental growth has slowed to an average of just +0.4 per cent over the past six months. This slowdown contrasts sharply with the previous financial year when monthly growth averaged +1 per cent.

Perth vacancy rates

Vacancy rates are a key indicator of the rental market's balance, offering insights into the availability of rental properties and the ease with which tenants can find housing. Nationally, the vacancy rate has eased slightly, but many capitals, including Perth, remain tight. The persistently low vacancy rates highlight the ongoing challenges tenants face in securing rental accommodation.

^{Source: SQM Research}

Perth's vacancy rate held steady at 0.7 per cent in July 2025, underscoring the persistent shortage of available rental properties. This low vacancy rate aligns with the broader trend of tight rental markets across Australia. Compared to other capitals, Perth's vacancy rate is among the lowest, reflecting intense competition for rental properties. Despite the steady vacancy rate, rents in Perth rose by +0.4 per cent over the month and +6.2 per cent over the year, indicating that tight supply continues to drive price growth.

Louis Christopher, Managing Director of SQM Research said in his latest rental market report

“Perth’s vacancy rate stayed at 0.7%, underscoring Louis’s point that shortages persist even when the national rate appears steady. Rents climbed 0.4% in the month and 6.2% over the year—evidence that tight supply is still fuelling strong price growth, just as he warns. With vacancies well below the balanced range, Perth tenants face intense competition for listings. Unless construction ramps up, rental affordability will remain a key pressure point.”

Perth’s vacancy rate stayed at 0.7 per cent, reinforcing Louis’s observation that shortages persist even when the national rate appears steady. Rents climbed +0.4 per cent in the month and +6.2 per cent over the year, showing that tight supply is still driving strong price growth, just as he warns. With vacancies well below the balanced range, Perth tenants face intense competition for listings. Unless construction ramps up, rental affordability will remain a key pressure point.

^{Source: Cotality}

Highlights for Perth’s high growth areas

• Swan leads the pack with a median value of $762,000 and impressive annual growth of +15.0 per cent. This reflects its strong and sustained market performance.
• Mundaring is not far behind, ranking #2 with a median price of $820,000 and a growth rate of +13.5 per cent. This rapid rise signals growing confidence among investors.
• Bayswater - Bassendean holds the #3 spot, boasting a median value of $850,000 and annual growth of +12.8 per cent, indicating steady performance amid solid demand.
• Wanneroo makes a new entry at #4, with a median value of $780,000 and growth of +12.0 per cent, driven by renewed local appeal.
• South Perth (ranked #6 with a median of $1,010,000 and +11.5 per cent growth) and Perth City (ranked #7 at $785,000 and +10.8 per cent growth) showcase premium urban appeal with balanced, stabilised gains.