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

Perth’s property market exhibited exceptional growth in 2024, recording a remarkable 19.1% annual increase in home values, outpacing all other capitals in Australia. This growth translated to a median home value of $813,016, underlining Perth’s strong market performance amidst national challenges such as high interest rates and affordability constraints​.

Perth Property Price Growth

Perth led the nation with a 19.1% annual price increase, marking its strongest yearly performance. The city’s values peaked at a 24.7% rolling annual increase in July, but growth eased towards the latter half of the year as supply improved and buyer urgency waned​.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on 1st January 2025

Perth Property Market Trends

• Supply Dynamics: A clear lift in advertised stock levels in Perth reduced buyer urgency, slowing growth compared to earlier in the year. Despite this, strong demand in the most affordable quartiles supported higher growth in lower-priced segments.
• Top Performing Areas: Among Perth’s suburbs, Swan (24.0%), Mundaring (22.2%), and Kwinana (22.1%)** recorded the highest annual value growth, indicating strong demand in outer and affordable regions​

Change in dwelling values over key time periods

Perth Property Market Forecast

Looking ahead, market conditions in Perth are expected to stabilize as affordability challenges and reduced borrowing capacity weigh on demand. However, the city’s robust annual performance, coupled with ongoing supply constraints, is likely to provide a solid foundation for moderate growth 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

Perth’s housing market emerged as a standout performer in 2024, driven by strong demand in affordable segments and regional areas. While the pace of growth slowed in the latter half of the year, Perth remains poised for continued resilience, bolstered by its relative affordability and ongoing population growth​.

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