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

Perth continues to lead Australia’s property market in 2025, showing the strongest pace of growth among the major capitals. Dwelling values rose 1.9% in October alone, capping a 5.4% quarterly increase and a robust 9.4% annual rise. The median dwelling value now stands at $884,471, marking an 84.2% gain from the market’s previous cyclical low. Perth’s housing market remains buoyant amid tight supply, strong migration, and sustained local demand.

Market Highlights

• Perth leads Australia’s housing market with 1.9% monthly growth in October and 9.4% annual growth, taking the median dwelling value to $884,471.
• Values have surged 9.5% since February 2025, the strongest rebound among major capitals, as low supply continues to meet strong demand.
• House prices rose 9.2% annually to $926,464, while units climbed 11.2% to $650,860, reflecting broad strength across all segments.
• Perth’s top-performing areas include Belmont–Victoria Park (13.6%), Kwinana (12.3%), and Armadale (11.5%), highlighting rapid growth in affordable southern and eastern suburbs.
• Listings remain historically low while sales volumes stay above average, keeping competition intense and supporting further price rises.
• Rental markets are tight, with yields around 4.0% for dwellings and 5.4% for units, underpinned by low vacancy rates and rising rents.
• Population growth, limited new supply, and strong investor interest continue to drive momentum despite affordability pressures.
• Growth is expected to stay positive into 2026, though the pace may moderate as construction costs, rate expectations, and credit tightening weigh on sentiment.

Housing Metrics Overview

See how Perth’s property values have performed across houses and units over various timeframes, along with returns, yields, and median prices.

Watch CoreLogic’s October 2025 Housing Market Update for expert commentary on national and capital city housing trends, price movements, and key market drivers across Perth.

Perth Property Price Growth

Perth’s growth has accelerated sharply since the first rate cut in February 2025, with values up 9.5% since then, one of the fastest rebounds nationally. Both houses and units have experienced broad-based gains: house values climbed 9.2% over the year to a median of $926,464, while unit values surged 11.2% to $650,860. Key growth areas include Belmont–Victoria Park (13.6%), Kwinana (12.3%), and Armadale (11.5%), reflecting strong activity in the city’s south and southeast corridors.

Perth Property Market Trends

Demand is far outpacing supply. Advertised listings remain well below historical averages, while home sales volumes are above the five-year norm. This imbalance continues to fuel price appreciation, particularly in Perth’s middle and lower market segments, where affordability still compares favorably to eastern capitals. Investor participation remains elevated, and rental markets are tightening further. Gross rental yields in Perth are now around 4.0% for dwellings and 5.4% for units, supported by low vacancy rates and rising rents.

Across Perth’s metropolitan area, nearly all subregions recorded double-digit annual value growth, with strong performances in both established suburbs and outer-growth zones. Construction activity, however, remains subdued due to cost pressures and limited builder capacity, constraining new housing supply.

The table outlines CoreLogic’s Home Value Index as of 3rd November 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Perth Property Market Forecast

Looking ahead, growth in Perth is likely to remain positive but moderate. Ongoing affordability challenges, higher construction costs, and a potential slowdown in further rate cuts could temper the market’s pace. Nonetheless, sustained population inflows, employment growth, and continued supply shortages are expected to support further price appreciation into 2026. Investor credit tightening remains a risk, but Perth’s relative affordability compared to other capitals should cushion the market from major declines.

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.

Conclusion

Perth’s housing market is in a strong position, leading national growth and showing resilience through a period of economic adjustment. Its combination of low supply, healthy rental returns, and consistent buyer demand has created a durable upswing that is likely to persist into the coming year. While the pace may ease, Perth remains one of Australia’s standout markets for both value growth and overall stability.

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