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

Perth’s property market is leading the nation in 2025, and not by a small margin. Strong fundamentals—like tight supply, robust migration, and price-accessibility—are fuelling its rapid rise. But beyond the headlines, there’s more nuance: key outer suburbs are surging, rental yields remain high, and affordability, though still a drawcard, may soon be tested. This update unpacks what’s behind the boom, where the pressure points lie, and why Perth continues to present one of Australia’s most compelling real estate stories this year.

Market Highlights

• Perth is Australia’s fastest-growing capital city market in 2025, driven by strong interstate migration, limited housing supply, and affordability. Dwelling values rose 4.4% in Q2 and 18.3% annually, far outpacing all other cities.
• Despite rapid growth, the median dwelling value of $757,399 keeps Perth relatively affordable, making it attractive to both homebuyers and investors. Suburbs like Canning, Gosnells, and Stirling saw double-digit annual growth, showing robust demand even in outer zones.
• Listings remain critically low—about 40% below average—fueling price pressure. Rental growth is strong, with gross yields at 4.6%, among the highest nationally.
• With interest rates expected to fall and construction still lagging behind demand, Perth’s momentum is likely to continue through late 2025. The main watchpoint is potential affordability strain, but overall, Perth offers one of the most compelling opportunities in the national market.

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 monthly 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 leads the nation on almost every price metric:

• Quarterly growth (Q2 2025): 4.4%, the highest among the capitals
• Monthly growth (June): 1.4%
• Annual growth: 18.3%, significantly outpacing other cities

Since the start of 2023, Perth dwelling values have soared 30.8%, and over the last five years, they’ve grown by 56.1%. This surge has pushed Perth well above previous market peaks, driven by fierce buyer competition and tight listings.

Suburbs such as Canning, Gosnells, and Stirling have all posted double-digit annual growth, indicating the strength of demand even in outer suburban areas.

View the latest property value movements across Australia’s capital cities. Use the filters to explore monthly, quarterly, and annual changes by dwelling type and region. Data sourced from CoreLogic.

CoreLogic Home Value Index, Released on 1st July 2025

Perth Property Market Trends

Several key dynamics are fueling Perth’s strong performance:

• Severe listing shortages: Active listings are down around 40% below the five-year average, creating bidding pressure and price escalation.
• High rental growth: House rents rose 10.3% and unit rents increased 9.6% over the past year.
• Gross rental yields are robust at 4.6%, among the best in the country, enhancing the city’s investor appeal.

Affordability remains a relative strength for Perth, especially compared to eastern cities. This advantage, combined with strong jobs growth and low unemployment, continues to draw in both local and interstate buyers.

Dwelling value growth over the past 5 and 10 years, including combined capital and regional market performance.

Perth Property Market Forecast

Looking ahead, Perth is expected to remain one of Australia’s top housing performers:

• Interest rates are projected to fall, easing mortgage pressures and unlocking further buyer capacity.
• With new home approvals lagging well behind population growth, supply constraints will persist into 2026.
• Strong net migration and economic stability in WA support continued demand across both rental and ownership sectors.

The main constraint could be affordability deterioration if price growth continues at the current pace. However, without a major external shock, momentum is expected to carry through the second half of 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

Perth’s housing market is on a rapid upward trajectory, supported by strong fundamentals: low supply, high demand, healthy rental returns, and ongoing affordability relative to other capitals.

Its 18.3% annual growth rate places it clearly ahead of the pack, and the outlook suggests further gains are likely. For buyers and investors, Perth currently offers one of the most dynamic and rewarding real estate environments in the country.

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