Perth property market data, trends, forecasts

Perth property market news - key takeaways

• Price momentum remains strong: Perth’s median home values climbed by +1.9 per cent in October 2025. According to Cotality, this keeps Perth at the forefront of value growth among Australia's capitals.
• Supply remains tight: The Perth property market is experiencing a supply crunch. Cotality reports that advertised stock levels are 45 per cent below the five-year average, which continues to drive price growth.
• Property selling quickly: Homes in Perth are selling fast. The market's low median days on market show strong buyer demand and limited supply, pushing vendors to price accurately and buyers to act quickly.
• Stable rental conditions: Weekly rents in Perth are around $755, with a low vacancy rate of 0.7 per cent. SQM Research highlights this as a sign of a tight rental market with ongoing demand.
• Interest rates steady: The Reserve Bank of Australia has kept the cash rate at 3.60 per cent. Major banks expect no further cuts in 2025, suggesting borrowing costs will remain stable, maintaining current market dynamics.

Perth property price movements

The Perth property market is leading the nation in value growth, with a noticeable rise in dwelling values. Despite this strong performance, the market faces challenges like low supply levels, which are well below the five-year average. This shortage is putting upward pressure on prices.

Perth property prices - October 2025

Perth's property market saw solid growth in October, with dwelling values climbing by +1.9 per cent over the month. This growth trend has been steady, with a quarterly increase of +5.4 per cent and an annual rise of +9.4 per cent. The median value for Perth dwellings in October 2025 was $884,471.

^{Source: Cotality}

Perth's property values have been steadily rising, reflecting a broader trend of growth across Australian capital cities. The city's property market has consistently outperformed other capitals, driven by a significant demand-supply imbalance. This trend is expected to continue as supply remains tight and demand stays strong.

House prices in Perth

In the Perth housing market, house values increased by +1.9 per cent in October 2025. Over the quarter, house values rose by +5.5 per cent, and the annual growth reached +9.2 per cent. The median house price in Perth was $926,464.

^{Source: Cotality}

The Perth housing market has shown resilience, with Perth house prices consistently rising. This growth is largely due to the scarcity of listings, which are 45 per cent below the five-year average. Strong demand, combined with limited supply, continues to drive the Perth housing market, making it one of the most competitive in the country.

Unit prices in Perth

Perth unit prices saw a monthly increase of +1.8 per cent in October 2025. The quarterly growth was +4.9 per cent, and the annual change was +11.2 per cent. The median value for Perth units was $650,860.

^{Source: Cotality}

The increase in Perth unit prices reflects a broader national trend where unit values are rising faster than house values. This is partly due to the affordability of units compared to houses, attracting both investors and first-home buyers. The strong demand for units, combined with limited supply, has contributed to the significant growth in Perth unit prices.

Perth property market forecasts 2026

Australia’s big four banks regularly release house price forecasts to guide mortgage-lending decisions, manage risk, and demonstrate their market expertise. Here's what's expected across the country for 2026.

<sup>Source: Westpac Housing Pulse, NAB Residential Property Survey, CBA Economic Update, ANZ Housing Outlook. 
* ANZ estimate for Capital Cities, not national</sup>

Perth is set to maintain its strong growth path, outpacing many other capital cities. These Perth property market predictions suggest significant price increases, driven by low listings and favourable economic conditions.

Perth home price forecasts 2026

Westpac anticipates a +4 per cent rise in Perth property prices in 2026. NAB forecasts a +3.7 per cent increase, while ANZ expects a +4.3 per cent rise. These forecasts highlight Perth's strong market fundamentals, such as limited supply and robust economic conditions. 

The stable cash rate is also enhancing this momentum by slightly boosting borrowing power and attracting a wide range of buyers.

RBA cash rate forecast 2025-2026

The Reserve Bank of Australia (RBA) kept its cash rate steady at 3.60 per cent on 5 November 2025, following three 0.25-per-cent cuts earlier in the year. This decision came after inflation unexpectedly rose, with the RBA’s preferred trimmed-mean measure reaching 3.0 per cent, the top of its 2–3 per cent target band, and headline CPI running at 3.5 per cent annually. This left no room for another rate cut in 2025. Major bank economists initially expected a November cut but changed their predictions when inflation figures rose, correctly anticipating the RBA would hold the rate.

Here's where the major banks see the cash rate heading next:

• Commonwealth Bank (CBA): Expects no further cash rate cuts in this cycle, keeping the rate at 3.60 per cent into 2026.
• Westpac: Also sees no cuts for the rest of 2025 but forecasts a 0.25-per-cent cut in May 2026 and another in August 2026, bringing the cash rate down to 3.10 per cent by late next year.
• National Australia Bank (NAB): Predicts no additional 2025 cuts, with one 25-basis-point cut in May 2026, lowering the cash rate to 3.35 per cent by mid-2026.
• ANZ: Similarly anticipates no more cuts in 2025, with the next move being a 0.25-per-cent cut in February 2026, taking the cash rate to 3.35 per cent at the start of 2026.

What this means for the Perth market

Perth continues to lead the nation in price growth, up about +9 per cent year-on-year. The rate hold is boosting an already strong market, characterised by low listings and solid economic conditions. Borrowing power is slightly improving after earlier cuts, and Perth’s relatively affordable prices are drawing in a wide range of buyers. A steady cash rate is only amplifying this momentum, with little indication of a slowdown in the short term.

Perth house prices graphs and charts

Perth's house price growth over the last 5 years has been impressive, showing resilience and a strong upward trend. Dwelling values increased by +1.9 per cent in October, +5.4 per cent over the quarter, and are +9.4 per cent higher than a year ago, reaching new peaks after years of growth.

According to Cotality, Perth's market has shifted from stagnation to becoming one of the nation's top performers. The city's affordability, combined with limited supply and a strong local economy, has led to significant price gains, attracting both first-home buyers and investors.

Perth property prices graph over 30 years

Perth property growth over the last 10 years has been shaped by various economic cycles, particularly the mining boom and subsequent downturns. The recent surge in prices is due to low supply, strong demand, and economic resilience, helping the market recover and surpass previous peaks.

Over the past three decades, Perth has seen significant fluctuations, often linked to the mining sector's fortunes. Homeowners today are generally optimistic, supported by the city's economic strength and the potential for continued growth. However, they remain cautious due to higher interest rates and the need for careful financial planning.

Perth selling statistics

Perth's property market in November 2025 is experiencing a slowdown, with fewer new and total listings compared to last year. However, properties are still selling quickly, showing that buyer interest remains strong.

Perth sales volume and days on market

Sales volume in Perth has dropped by -3.3 per cent compared to the same time last year. Despite this, the median days on market for properties remains low at 11 days, consistent with the previous month, indicating a fast pace of sales.

^{Source: Cotality}

The rapid turnover, with properties spending just 11 days on the market, suggests that while there are fewer listings, those available are being purchased swiftly. This contrasts with cities like Hobart and Darwin, where properties stay on the market for over 30 days. The rapid sales in Perth may be due to limited supply, creating urgency among buyers.

Perth new and total listings

There has been a significant -28.0 per cent decrease in new listings and a -26.0 per cent decrease in total listings in Perth from October 2024 to October 2025. This reduction in available properties is influencing the current market dynamics.

^{Source: Cotality}

The sharp decline in both new and total listings indicates a tighter market in Perth, with fewer properties for sale. This scarcity can lead to increased competition among buyers, potentially driving up prices as demand exceeds supply. Compared to other cities, Perth's decrease in listings is one of the most significant, highlighting a unique market condition.

Perth vendor discount

Vendor discount refers to the percentage difference between the initial asking price and the actual sale price, offering insight into the bargaining power buyers have. Tighter discounts mean sellers are firm on price, while wider discounts suggest a softer market with more room for negotiation.

^{Source: Cotality}

In Perth, the vendor discount has tightened to 2.6 per cent over the three months to October 2025, one of the lowest among capital cities. This indicates sellers are less willing to negotiate, reflecting a seller's market where demand supports asking prices. This contrasts with cities like Adelaide, where the vendor discount is wider, allowing for more negotiation.

Perth property investing

Perth's rental market is currently in a dynamic phase, marked by strong demand and limited supply. This situation has led to noticeable changes in rental rates and yields, reflecting broader trends across the Australian property landscape. Let's explore the specifics of rental rates, yields, and vacancy trends in Perth to understand the current market conditions better.

Perth rental market

Rental rates in Perth have seen significant growth. As of September 2025, house rents increased by +5.7 per cent, while units rose by +6.9 per cent. This rise highlights the strong demand pressures in the city, intensified by a limited supply of rental properties. Perth's rental yield stands at 4.0 per cent, which is relatively high compared to other major cities. This suggests that despite rising property values, rental returns remain attractive.

^{Source: Cotality}

The table clearly shows that Perth's rental market is heavily influenced by its tight supply conditions. The city's robust rental yield of 4.0 per cent reflects the ongoing demand for rental properties, driven by population growth and limited new housing stock. This environment has led to competitive rental conditions, where tenants face increasing rents and limited availability.

Perth vacancy rates

Vacancy rates are a crucial indicator of the balance between supply and demand in the rental market. They show how easily tenants can find properties and negotiate rents. Nationally, vacancy rates have shown a slight easing, but many cities, including Perth, continue to experience tight conditions. As of October 2025, Perth's vacancy rate was 0.7 per cent, highlighting the city's persistent supply constraints.

^{Source: SQM Research}

In Perth, the vacancy rate of 0.7 per cent underscores the intense competition for rental properties, remaining well below the balanced range. This low vacancy rate clearly indicates ongoing supply shortages that continue to drive rental price growth. Compared to other cities, Perth's vacancy rate is among the lowest, reflecting strong demand and limited rental stock.

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

“The national vacancy rate holding at 1.2% suggests the rental market remains very tight, with little sign of meaningful supply increases. While some capitals are showing temporary easing in rent growth, underlying conditions remain undersupplied, particularly in cities such as Perth, Adelaide, and Hobart. Brisbane continues to attract strong demand from interstate migration, while Melbourne and Canberra appear to be stabilising following recent surges in new rental listings. Overall, we expect rental conditions to remain tight through the summer months, with only a modest increase in vacancies likely in early 2026.”

Perth remains one of the tightest markets, matching Louis’s characterisation of limited supply and ongoing rent rises. A steady vacancy rate at 0.7% underscores how little slack exists. Combined rents lifted 1.0% month-on-month and 4.9% year-on-year, consistent with competition for scarce listings. Without a noticeable lift in rental stock, Perth is likely to remain well below balanced conditions

Highest growth areas in Perth

^{Source: Cotality}

Highlights for Perth’s high growth areas

• Belmont - Victoria Park is leading the pack, holding the top spot in October 2025. With a median value of $873,405, it has seen an impressive +13.6 per cent growth over the year. Its closeness to the CBD and recent infrastructure improvements, like the Airport Line, add to its allure. (Suburbs to watch: Victoria Park)
• Kwinana comes in at #2, boasting a median value of $700,392 and an annual growth of +12.3 per cent. Its affordability and proximity to key employment areas in the industrial strip make it a popular choice for young families and tradespeople. (Suburbs to watch: Parmelia, Wellard)
• Armadale holds steady at #3 with a median value of $778,035 and an annual increase of +11.5 per cent. The area benefits from major rail network upgrades, which enhance connectivity and boost residential demand. (Suburbs to watch: Kelmscott, Camillo, Roleystone, Harrisdale, Piara Waters, Seville Grove, Armadale)
• Serpentine - Jarrahdale and Swan both show an annual growth of +11.3 per cent, with median values of $824,927 and $819,929, respectively. These areas consistently rank high, thanks to their family-friendly appeal and closeness to natural attractions. (Suburbs to watch: Byford, Dayton, Brabham, Ballajura, Ellenbrook, Aveley)
• South Perth, with a median value of $1,233,093, ranks #6, showing a +10.6 per cent annual growth. Its riverside location and proximity to the city make it highly desirable, attracting high-income professionals. (Suburbs to watch: Como)