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

Perth remains one of Australia’s strongest-performing housing markets, continuing a solid run through 2025. Limited supply and robust demand have kept competition intense, making Perth stand out compared with the larger eastern capitals. As of September 2025, the city’s median dwelling value sits at $855,267, reflecting both affordability relative to Sydney and Melbourne and its fast pace of growth.

Market Highlights

• Perth dwelling values rose 1.6% in September, reaching a median of $855,267.
• Quarterly growth was 4.0%, while annual gains reached 7.5%.
• Over the past 5 years, Perth values are up a striking 82.7%, one of the strongest results nationwide.
• Both houses and units gained, with units slightly outpacing houses in the September quarter.
• Listings remain about 45% below average, fuelling competition and fast sales.
• Top-performing suburbs include Belmont–Victoria Park (11.4%), Kwinana (9.6%), and Armadale (9.1%).
• Rental market strength continues, with rents up 1.7% in the quarter and yields averaging 4.2% for houses and 5.4% for units.

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 September 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 posted 1.6% growth in September, the highest among the major capitals for the month. Over the quarter, values jumped 4.0%, while annual gains reached 7.5%. Looking over the past five years, Perth’s market has surged 82.7%, underscoring its long-term momentum. Both houses and units rose strongly, with units slightly outpacing houses in the September quarter—an unusual but telling sign of demand pressures across the board.

Perth Property Market Trends

Listings remain exceptionally tight, sitting 45% below average, which has amplified competition. Buyer demand continues to outstrip supply, especially in mid- and outer-suburban areas. Several local markets have seen double-digit annual value growth, with Belmont–Victoria Park leading at 11.4%, followed by Kwinana (9.6%) and Armadale (9.1%).

Rental conditions are also strong. Perth rents rose 1.7% over the September quarter, one of the highest increases among the capitals. Gross rental yields average 4.2% for houses and 5.4% for units, making the city attractive to investors compared with the lower yields of Sydney or Melbourne.

The table outlines CoreLogic’s Home Value Index as of 1st September 2025, showing peak declines, five-year growth, and changes since the first rate cut in February.

Perth Property Market Forecast

With supply levels so constrained, Perth’s market is expected to maintain momentum into 2026. Lower interest rates and continued population inflows will add fuel to demand, particularly in affordable suburbs and lifestyle precincts. However, affordability pressures are slowly building as values climb, which could temper the rate of future growth if wages fail to keep pace.

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 continues to be a national outperformer, combining affordability with rapid capital growth and strong rental conditions. With dwelling values rising faster than most other capitals and listings at historic lows, the city’s market remains competitive. Unless supply improves meaningfully, Perth is likely to sustain its strong growth trajectory, though affordability risks may become the key challenge ahead.

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