Perth Property Market – Prices, Trends, Forecast [March 2025]

Perth’s housing market remains resilient, with home values increasing 0.3% in February. While growth has slowed compared to other mid-sized capitals like Adelaide and Brisbane, annual value growth stands at 14.3%, making Perth one of the strongest performers over the past year.

Perth Property Price Growth

Perth’s quarterly growth was a modest 0.3%, indicating some softening in momentum. Despite this, its five-year price growth of 75.9% outpaces most other capital cities, reflecting long-term strength. The median dwelling value in Perth now sits at $807,933, continuing its upward trajectory.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 3rd March 2025

Perth Property Market Trends

The supply shortage remains a key factor in supporting price growth. Listings are down by 28% compared to the five-year average, intensifying buyer competition. In contrast, cities like Sydney and Melbourne have higher inventory levels, giving buyers more negotiating power. Rental yields in Perth remain high at 6.4%, significantly above national averages, attracting investor interest.

Change in dwelling values over key time periods

Perth Property Market Forecast

Perth’s housing market outlook remains positive, but the pace of growth is expected to moderate. Slower population growth and affordability constraints may temper demand. However, limited new housing supply and strong rental demand will continue to support prices in 2025.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

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Conclusion for Homeowners

Despite recent slower growth, Perth remains one of Australia’s strongest housing markets. Tight supply, high rental yields, and long-term value appreciation provide strong fundamentals, though affordability and population trends will influence future movements.

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