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

Perth continues to demonstrate strong housing market performance, reaching a new record high in April 2025. The city’s residential property sector is buoyed by both demand and relative affordability compared to other capitals. With a median dwelling value of $807,728, Perth is among the mid-sized capitals that have surpassed their previous market peaks, achieving a 77.2% increase over the past five years.​

Perth Property Price Growth

Perth recorded robust annual growth of 10.0% in dwelling values over the 12 months to April 2025, leading all capital cities in value appreciation. On a monthly basis, values rose 0.4%, while the quarterly figure stood at 0.7%, slightly behind other cities such as Brisbane and Sydney​.

Breaking this down further:

• Houses in Perth rose 0.4% over the month and 0.6% for the quarter, with a 9.4% annual increase.
• Units performed even more strongly, gaining 0.6% in April, 2.1% over the quarter, and 14.5% year-on-year, indicating a significant upswing in this sector​.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 1st May 2025

Perth Property Market Trends

Perth’s housing market benefits from ongoing affordability, especially in the unit sector, and strong rental yields:

• Gross rental yield sits at 4.3% for houses and 5.7% for units, both well above national averages.
• While annual rent growth slowed from 13.6% in April 2024 to 5.7% in April 2025, it remains the highest among all capital cities, showcasing continued investor interest​.

A key trend is the superior performance of the unit market, which outpaced houses over the quarter. This suggests increasing demand from downsizers and investors seeking better yields in a more affordable entry segment.

On a sub-regional level, several Perth suburbs experienced exceptional growth:

• Swan (North East) saw a 14.2% annual rise to a median value of $757,542.
• Other strong performers include Mundaring (+13.3%), Kwinana (+12.9%), and Perth City (+10.7%), indicating broad-based strength across the metro area​.

Change in dwelling values over key time periods

Perth Property Market Forecast

The outlook remains cautiously optimistic. CoreLogic expects further modest value gains in 2025, supported by:

• Prospective interest rate cuts,
• Ongoing housing undersupply,
• And stimulatory housing policies being debated in the lead-up to the federal election.

However, challenges persist:

• Housing affordability is increasingly stretched; mortgage repayments for median dwellings now consume over 50% of gross income nationally.
• New housing supply is constrained by rising construction costs and lower dwelling commencements.

Despite these headwinds, Perth’s relatively low price base, solid rental performance, and population growth make it well-positioned for continued outperformance in the short-to-medium term.

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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Breaking this down further:

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Conclusion for Homeowners

Perth stands out as one of Australia’s top-performing housing markets. With double-digit annual growth, a surge in unit values, high rental yields, and resilient affordability compared to eastern capitals, it continues to attract both owner-occupiers and investors. While broader economic and policy uncertainties remain, Perth’s housing market appears well-supported to maintain upward momentum in 2025.

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