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Perth's property market has experienced remarkable growth, with prices per square meter now ranging from $1,250 to $3,000 depending on property type and location. As of September 2025, the median house price sits at $750,000 while units have reached $500,000, making Perth Australia's standout performer for capital growth over the past five years.
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Perth property prices have surged dramatically, with the average price per square meter now ranging between $1,250-$3,000 depending on location and property type.
The city offers the strongest rental yields among Australian capitals at 4.2-5.4%, driven by extremely low vacancy rates of just 0.7%.
| Property Type | Median Price (Sept 2025) | Price per sqm Range | Annual Growth Rate |
|---|---|---|---|
| Houses | $750,000 | $2,500-$3,000 | 23.0% |
| Units/Apartments | $500,000 | $1,250-$2,000 | 20.5% |
| New Construction | $450,000+ | $2,300-$4,450 | N/A |
| Premium Suburbs | $3,000,000+ | $4,000+ | 15-25% |
| Affordable Areas | $540,000-$580,000 | $1,200-$1,500 | 5-8% |
What's the current average price per square meter in Perth?
As of September 2025, the average price per square meter in Perth ranges between $1,250 and $3,000, depending on property type and location.
For new construction, the cost averages $2,300 to $4,450 per square meter according to current building estimates. The median house price of $750,000 and unit price of $500,000 translate to effective price per square meter rates that vary significantly by neighborhood quality and proximity to amenities.
Perth's property market has experienced unprecedented growth, with prices increasing by over 80% since March 2020. This makes it Australia's standout capital city for growth, though prices remain more affordable than Sydney, Melbourne, or Brisbane.
The price per square meter calculation becomes complex for established homes since listings typically reflect land value rather than built area. However, recent sales data suggests the $1,250-$3,000 range accurately represents current market conditions.
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How do prices differ depending on the type of property, like apartments, townhouses, or detached houses?
Houses command significantly higher prices per square meter than units, with detached homes ranging from $2,500-$3,000 per square meter while units typically fall between $1,250-$2,000 per square meter.
The median house price of $750,000 represents a 23% annual increase, while units at $500,000 have grown 20.5% year-on-year. Three-bedroom houses specifically average $986,909 with price per square meter ranging $2,300-$2,800.
Townhouses and mid-density housing generally fall between houses and units in terms of pricing. The premium for houses reflects land scarcity and buyer preference for standalone properties with private outdoor space.
New construction costs provide another perspective, with building costs ranging $2,300-$4,450 per square meter for houses. This wide range reflects different quality levels, finishes, and design complexity chosen by buyers.
Units deliver better value per square meter but houses offer superior capital growth potential and rental yields due to land component appreciation over time.
How much do prices vary across different neighborhoods and suburbs?
| Suburb Category | Example Suburbs | Median House Price | Price Range |
|---|---|---|---|
| Premium Coastal | Peppermint Grove, Cottesloe, City Beach | $3,150,000-$4,225,000 | Ultra-premium |
| Established Inner | Dalkeith, South Perth, Melville | $2,500,000-$3,300,000 | High-end |
| Growth Suburbs | Mundaring, Scarborough, Victoria Park | $800,000-$1,200,000 | Mid-range |
| Affordable Options | Medina, Pinjarra, Armadale | $540,000-$580,000 | Entry-level |
| Up-and-Coming | Alexander Heights, Brentwood, Burns Beach | $450,000-$580,000 | Growth potential |
What's the difference in price per sqm between small units, medium-sized homes, and large properties?
Small units typically command the highest price per square meter due to premium location advantages and efficient use of space, often exceeding $2,000 per square meter in central areas.
Medium-sized homes (120-200 square meters) offer the best balance, averaging $1,500-$2,500 per square meter with total prices ranging $700,000-$900,000. These properties represent the market sweet spot for most buyers.
Large properties and luxury homes often show lower price per square meter rates if situated on substantial land parcels, though premium locations can push rates above $3,000 per square meter. The land component becomes increasingly valuable in prestigious suburbs.
Investment perspective favors medium-sized properties for optimal rental yields and capital growth potential. Small units provide higher gross yields but may face higher body corporate fees affecting net returns.
Large properties appeal to affluent buyers seeking prestige and space, creating a distinct market segment with different pricing dynamics than mainstream residential property.
What are the typical total purchase prices once you include taxes, fees, and closing costs?
Total purchase costs in Perth typically add 3-5% to the property price through stamp duty, legal fees, inspections, and loan establishment costs.
Stamp duty rates vary by purchase price, with no duty on homes under $500,000 and escalating rates above that threshold. For a typical $850,000 home, expect total on-costs of $25,000-$42,500.
Legal fees, building inspections, and loan setup costs typically range $5,000-$15,000 depending on property complexity and lender requirements. First home buyers may qualify for stamp duty concessions reducing overall costs.
Conveyancing fees average $1,500-$3,000 while building inspections cost $400-$800. Loan establishment fees vary by lender but typically range $600-$1,200 plus ongoing annual fees.
Smart buyers budget 5% above purchase price to cover all transaction costs and avoid financing shortfalls at settlement. This conservative approach prevents last-minute borrowing or cash flow problems.
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How much does it cost to finance a property here with a standard mortgage?
Home loan rates in Perth currently range from 4.89% to 5.39% for variable rates, with fixed 2-year rates available from 4.94% as of September 2025.
For a typical $600,000 loan over 30 years, monthly repayments range $3,200-$3,400 at current interest rates. This represents approximately 35-40% of median household income in Perth.
Deposit requirements vary by lender and buyer profile, with 20% deposits avoiding lenders mortgage insurance costs. First home buyers may access loans with 5-10% deposits through government schemes.
Total borrowing capacity depends on income, expenses, and credit history. Most lenders allow borrowing up to 6 times annual income, though serviceability tests at higher interest rates may reduce this figure.
Loan establishment costs, ongoing fees, and insurance should be factored into total financing costs. Monthly costs beyond principal and interest typically add $200-$400 to repayment obligations.
Can you give me some real-world examples of purchase prices at different property sizes and locations?
- Outer suburban new house (300sqm land): Approximately $400,000 total, representing $1,333 per square meter for house and land package
- Northern coastal suburb (400sqm land): Around $500,000 total, equating to $1,250 per square meter in growth corridors
- Established inner suburb unit: 2-bedroom unit in Fremantle area, $480,000 for 80sqm, representing $6,000 per square meter
- Premium coastal house: City Beach median over $3,000,000, reflecting prime location premium and lifestyle amenities
- Family suburb house: Burns Beach 4-bedroom house, $580,000 median, offering growth potential with planned infrastructure
Which areas are the most expensive, which ones are more affordable, and which suburbs are up-and-coming right now?
Most expensive suburbs center on prestigious coastal and river locations, with Peppermint Grove leading at $4,225,000 median, followed by Dalkeith at $3,300,000 and Cottesloe at $3,150,000.
Affordable options include Medina ($540,000), Pinjarra ($555,000), Mandurah ($560,000), and Armadale ($570,000). These areas offer entry-level pricing with potential for future growth as Perth expands.
Up-and-coming suburbs showing strong momentum include Alexander Heights ($450,000 median with 5.2% growth), Brentwood ($520,000 with 4.8% growth), and Burns Beach featuring high growth rates and infrastructure investment.
Scarborough has emerged as a standout performer, recording 2.7% monthly growth to reach $1,204,000 median. The suburb benefits from beachfront amenities and urban renewal projects.
Investment strategy should target "bridesmaid" suburbs near million-dollar areas but below the $1M mark, such as Osborne Park, Innaloo, and Maylands for optimal capital growth potential.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What's the smartest option if you're buying to live in, to rent out long-term, to rent out short-term, or to flip later for profit?
Buying to live in: Target family-friendly suburbs with planned infrastructure like Brentwood, Burns Beach, or Alexander Heights. These areas offer affordability, growth potential, and lifestyle amenities.
Long-term rental investment: Focus on suburbs delivering 5-6.1% rental yields near employment hubs such as Joondalup, Victoria Park, Fremantle, and Piara Waters. Proximity to transport and amenities ensures consistent tenant demand.
Short-term rental investment: Choose coastal lifestyle areas like Scarborough, Cottesloe, or Perth CBD where tourism and business travel create strong Airbnb demand. Premium locations command higher nightly rates.
Property flipping strategy: Hunt for gentrifying suburbs near established million-dollar areas but priced below $1M threshold. Osborne Park, Innaloo, and Maylands offer renovation opportunities with strong capital growth potential.
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How have average prices changed compared to five years ago, and compared to just one year ago?
Perth property prices have experienced extraordinary growth over the past five years, rising approximately 82% since March 2020 according to market data.
Year-on-year growth shows houses increasing 23% to reach $750,000 median, while units have grown 20.5% to $500,000. This represents the strongest performance among Australian capital cities.
Five-year comparison reveals Perth's transformation from Australia's most affordable capital to a high-growth market. The city has recovered from the mining downturn and established new price benchmarks.
Monthly growth rates have moderated in 2025, with houses recording 1.4% and units 1% increases in recent months. This cooling reflects improved supply conditions and buyer caution.
Perth's meteoric rise makes it Australia's standout capital for capital growth, though affordability challenges are emerging as prices approach eastern capital levels.
What do experts forecast for prices in the next one year, five years, and ten years?
One-year forecasts suggest continued moderate growth at 4-5.2% as affordability constraints and improved supply balance market conditions.
Five-year predictions indicate sustained population-driven demand supporting annual growth of 6-8% for houses and 3.5-4% for units. Median house prices could exceed $1.4 million by 2030.
Ten-year outlook depends on resource sector performance, migration patterns, and supply responses. Experts expect cyclical but generally positive trajectory versus other capitals given Perth's economic fundamentals.
NAB forecasts house price increases of 4.7% in 2025, while Westpac predicts 4% growth. Both represent solid but moderated performance compared to recent years.
Long-term growth drivers include Western Australia's population growth rate of 2.8%, mining sector strength, and limited housing supply constraining price appreciation potential.
How does Perth's average price per sqm compare to other similar big cities?
| City | Average Price per sqm | Median House Price | Relative Value |
|---|---|---|---|
| Sydney | $3,200+ | $1,350,000 | Premium |
| Melbourne | $2,700+ | $1,090,000 | High |
| Brisbane | $1,200-$2,800 | $850,000+ | Moderate |
| Perth | $1,250-$3,000 | $750,000 | Strong Value |
| Adelaide | $1,050-$2,500 | $1,050,285 | Competitive |
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Perth's property market offers compelling value compared to eastern capitals while delivering Australia's strongest capital growth.
With rental yields of 4.2-5.4% and continued population growth, Perth presents attractive opportunities for both investors and owner-occupiers seeking affordable entry into the Australian property market.
It's something we develop in our Australia property pack.
Sources
- OpenAgent - Perth Property Market Data 2025
- REIWA - Perth Median House Prices and Market Data
- HERE Property - Perth Property Market Predictions 2025
- House Sale Perth - 2025 House Prices Perth
- Which Real Estate Agent - Perth Property Market August 2025
- Australian Property Update - Perth Property Boom 2025
- Soho Real Estate - Perth Property Predictions Next 5 Years
- Property Update - Latest Median Property Prices Australian Cities