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

Perth continues to outperform its capital city peers, cementing its place as Australia’s fastest-growing housing market in 2025. Affordability, strong population growth, and limited housing supply are key drivers fueling this performance. With a median dwelling value of $736,264, Perth remains accessible compared to eastern capitals, attracting both owner-occupiers and investors.

Market Highlights

• Dwelling values rose 0.9% in July, the highest of all capital cities, bringing quarterly growth to 2.6% and annual growth to 12.0%.
• Perth’s median dwelling value reached $736,264, remaining one of the most affordable mainland capitals.
• Rents continued to climb: 6.4% for houses and 6.4% for units year-on-year, with gross rental yields at 4.2%—above the national average.
• Suburbs like Mundaring (10.4%), Melville (9.2%), and South Perth (7.3%) led annual growth within Greater Perth.
• Outlook remains strong with buyer demand, tight supply, and affordability sustaining momentum through late 2025.

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 recorded a 0.9% increase in dwelling values in July, with a rolling quarterly rise of 2.6%—the highest among all capitals. Over the year, Perth’s values climbed 12.0%, and the city has seen a remarkable 82.0% increase over five years. These numbers underscore its exceptional momentum, especially given the relatively stable national average.

The Top 10 SA3s chart shows strong submarket growth in suburbs such as Mundaring (10.4%), Melville (9.2%), and South Perth (7.3%), reflecting broad value uplift across diverse parts of Greater Perth.

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 August 2025

Perth Property Market Trends

Rental demand remains strong in Perth. Annual rent increases reached 7.2% for houses and 6.4% for units, with gross rental yields at 4.2%—well above those in larger cities like Sydney and Melbourne. The elevated yields reflect a healthy investor return environment, reinforced by continued tenant demand and tight rental stock.

The pace of growth is supported by extremely low vacancy rates and limited new housing supply, pushing both prices and rents upward. Buyers are drawn to the city’s comparative affordability, while renters face increasing pressure from constrained stock.

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

Perth Property Market Forecast

Perth’s housing market is expected to continue leading national growth through the remainder of 2025. Key tailwinds include:

• Low interest rate expectations as inflation trends lower
• Strong population growth from interstate and overseas migration
• Tight supply, with new construction failing to meet ongoing demand

Although price growth has been rapid, Perth’s relatively low price base allows further room to move, especially when compared with more expensive capitals. However, any acceleration in construction activity or a shift in buyer sentiment could moderate this trajectory later in the year.

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 stands out as Australia’s leading growth market in 2025, driven by robust fundamentals and persistent supply constraints. Its combination of affordability, double-digit annual value growth, and high rental yields makes it a compelling proposition for buyers and investors alike. While national markets rise more modestly, Perth remains in a class of its own—well-positioned for continued expansion through year-end.

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