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Perth's property market is experiencing strong growth across different property types, with houses remaining dominant but apartments and townhouses gaining popularity due to affordability and rental yields. As of September 2025, median house prices sit around $705,000 while units average $494,000, showing significant year-on-year growth of 11.8% and 6.5% respectively.
Perth offers diverse opportunities from expensive waterfront suburbs like Peppermint Grove ($4.2-$5 million median) to affordable growth areas like Armadale ($450,000 median), making it attractive for both owner-occupiers and investors looking for capital growth and rental returns.
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Perth's property market shows strong performance with houses averaging $705,000 and units at $494,000, driven by population growth and infrastructure development.
The market offers diverse options from premium suburbs like Peppermint Grove to affordable growth areas like Armadale, with emerging suburbs showing the strongest capital gains potential.
| Property Type | Median Price 2025 | Annual Growth | Rental Yield |
|---|---|---|---|
| Houses (Perth Metro) | $704,986 | +11.8% | 5.3% |
| Units/Apartments | $493,762 | +6.5% | 6.1% |
| Peppermint Grove Houses | $4,225,000 | +23.6% | N/A |
| Armadale Houses | $450,000 | +14.1% | 5.9% |
| Cloverdale Units | $450,000 | +31% | 7.0% |
| Baldivis Houses | $560,000 | +9.2% | 5.5% |
| Morley Houses | $685,000 | +11.4% | 5.2% |
What types of properties are buyers choosing in Perth right now?
Perth buyers are currently targeting a diverse mix of houses, apartments, and townhouses, with a notable shift toward units and villas due to rising prices and changing market conditions.
Houses remain the dominant choice for families and upgraders seeking larger living spaces and land ownership. However, apartments and townhouses are gaining significant popularity among both first-time buyers and investors who are attracted by their relative affordability and higher rental yields.
Investors are increasingly focusing on apartments and townhouses because these property types delivered the strongest rental growth in 2025. Units and villas have shown particularly impressive rental yield performance, often exceeding 6-7% in inner-city areas compared to houses which typically yield around 5.3%.
The shift toward higher-density living is also driven by lifestyle preferences, with many buyers prioritizing proximity to amenities, public transport, and entertainment precincts over large backyards and suburban isolation.
This trend reflects Perth's maturing property market where buyers are becoming more yield-focused and pragmatic about property choices.
Which Perth areas are most expensive, upcoming, or budget-friendly?
Perth's property market shows clear geographical price divisions, with waterfront and established western suburbs commanding premium prices while emerging and outer areas offer affordability and growth potential.
The most expensive suburbs include Peppermint Grove with median house prices between $4.2-$5 million, City Beach at $3 million plus, Trigg at $2.3 million, and Shenton Park at $2.29 million. These premium areas also include Mosman Park, Cottesloe, and Nedlands, all benefiting from coastal proximity, established infrastructure, and prestige appeal.
Upcoming and fast-growing suburbs showing strong capital growth include West Perth, Riverton, Burswood, Guildford, Morley, Baldivis, Brabham, and East Cannington. These areas are benefiting from infrastructure development, urban rezoning, new residential developments, and improved transport connections.
Budget-friendly options can be found in Armadale with a median of $450,000 (though rising rapidly), Clarkson at $530,000, Baldivis ranging $560,000-$700,000, and Brabham offering entry-level pricing for new developments. East Cannington also provides value at $598,000 median with strong growth potential.
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How much do typical properties cost in different Perth areas?
| Suburb | Median House Price 2025 | Median Unit Price 2025 | Annual Growth |
|---|---|---|---|
| Peppermint Grove | $4,225,000-$5,035,000 | Limited stock | +23.6% |
| City Beach | $3,000,000+ | $800,000+ | Strong growth |
| Trigg | $2,300,000 | $650,000+ | Steady growth |
| Armadale | $450,000 | $350,000 | +14.1% |
| Baldivis | $560,000-$700,000 | $420,000 | +9.2% |
| Morley | $685,000 | $480,000 | +11.4% |
| Clarkson | $530,000 | $380,000 | +12.7% |
| East Cannington | $598,000 | $420,000 | +10.6% |
What are recent real sale examples in Perth?
Recent property sales in Perth demonstrate the wide price range and strong market activity across different suburbs and property types.
In the premium market, Peppermint Grove recorded a $20.1 million sale on Keane Street in 2024, while Perth's top residential sale reached $25 million in nearby Mosman Park. These ultra-premium sales reflect the continued strength in Perth's luxury property segment.
In the mid-market, Cloverdale units are selling at a median of $450,000, while houses in the same suburb now average around $700,000, representing a remarkable 31% annual increase. This demonstrates the rapid gentrification occurring in inner-middle suburbs.
Growth suburbs like Baldivis, Morley, and Armadale are seeing regular sales that align closely with their respective median prices, indicating healthy market activity. Armadale properties are selling consistently around the $450,000 mark, Morley around $685,000, and Baldivis in the $560,000-$700,000 range.
New developments in Brabham and other outer growth areas are achieving sales in line with advertised pricing, typically ranging from $450,000 to $650,000 for house and land packages.
These sales patterns confirm the data showing strong annual price increases across Perth's property market segments.
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What are typical property sizes in Perth?
Perth properties offer generous sizing compared to most Australian capitals, with land sizes and internal areas varying significantly based on location and property type.
Houses in suburban Perth typically sit on land parcels ranging from 350-650+ square meters, with larger blocks available in outer growth areas and smaller lots closer to the CBD. Premium suburbs often feature larger established blocks, while new developments optimize land use with more compact but well-designed parcels.
Units and apartments average between 50-80 square meters for one to two-bedroom configurations, offering comfortable living spaces with modern layouts. Townhouses and villas typically range from 80-120 square meters, providing a middle ground between apartment living and full house ownership.
House and land packages in growth suburbs like Baldivis, Brabham, and Helena Valley often feature blocks of 400-550 square meters or more, making them attractive for families seeking space and value. These developments frequently include 3-4 bedroom homes with double garages and outdoor entertaining areas.
The generous land sizes available in Perth represent significant value compared to other Australian capitals where similar-sized properties would command much higher prices.
What's the total cost including all fees and taxes?
Purchasing property in Perth involves several upfront costs beyond the property price that buyers must budget for when calculating their total investment.
Stamp duty represents the largest additional cost, typically ranging from 3-5% of the purchase price depending on the property value and buyer circumstances. Legal fees generally range from $1,200-$2,500, while building and pest inspections cost $500-$800. Property registration fees are approximately $200.
For a typical $700,000 property purchase, buyers should budget an additional $25,000-$35,000 for upfront costs. This breaks down to approximately $24,000 in stamp duty, $2,500 in legal fees, $500-$800 for inspections, and $200 for registration.
First-time homebuyers may be eligible for stamp duty concessions or exemptions, potentially reducing these costs significantly. Investment property purchases may face different stamp duty rates and should be factored into return calculations.
Additional costs may include mortgage registration fees, lender's mortgage insurance (if borrowing above 80% LVR), and any immediate repairs or improvements needed after settlement.
What would mortgage repayments cost today?
Mortgage costs in Perth reflect current interest rate conditions, with typical variable rates for new home loans sitting around 6.0-6.9% per annum as of September 2025.
For a typical $700,000 property with an 80% loan-to-value ratio, buyers would need a $140,000 deposit and borrow $560,000. Using a 6.5% interest rate over 30 years on a principal and interest loan, monthly repayments would be approximately $3,540.
A more affordable $450,000 property in areas like Armadale would require a $90,000 deposit with a $360,000 loan, resulting in monthly repayments of approximately $2,275 at the same interest rate and loan term.
Premium properties in expensive suburbs like Peppermint Grove at $4.2 million would require substantial deposits and result in monthly repayments exceeding $20,000, typically requiring significant household incomes to meet serviceability requirements.
Interest-only loans are also available for investors, reducing initial repayments but requiring higher deposits and resulting in no principal reduction during the interest-only period.
What are the smartest options if buying to live in the property?
Owner-occupiers in Perth should focus on suburbs that offer the best combination of lifestyle, amenities, growth potential, and value for money based on their specific needs and budget.
Family buyers should target outer growth suburbs like Baldivis, Brabham, and Piara Waters, which offer larger homes, family-friendly amenities, good schools, and strong value for money. These areas provide the space families need while delivering solid capital growth prospects.
Lifestyle-focused buyers might consider Helena Valley for its semi-rural feel and larger blocks, City Beach or Cottesloe for beachside living, or established inner suburbs like Mount Lawley for character homes and urban convenience. These areas command premium prices but offer unique lifestyle benefits.
First-time buyers should consider emerging suburbs like East Cannington, Morley, or Riverton, which provide entry-level pricing with strong growth potential and improving amenities. These areas offer the opportunity to enter the market and benefit from gentrification and infrastructure development.
Professional couples might prefer inner-city apartments or townhouses in areas like West Perth, Leederville, or Maylands for proximity to employment centers and entertainment precincts.
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What rental property choices make the most sense?
Perth's rental market offers strong opportunities for both short-term and long-term rental strategies, with different property types and locations suited to different investment approaches.
For long-term rentals, units and villas in inner-city areas like Perth CBD, Cloverdale, Maylands, and Leederville deliver the highest yields at 6-7% with low vacancy rates. These properties attract professional tenants and offer consistent rental income.
Suburban houses in growth areas like Armadale, Clarkson, and Baldivis provide strong rental yields around 5.5-5.9% combined with capital growth potential. These properties appeal to families and offer stable long-term tenancies.
Short-term rental opportunities exist in CBD apartments and coastal tourist areas, where furnished properties can achieve premium rates from business travelers and tourists. Perth CBD and West Perth locations work well for corporate accommodation, while coastal areas attract holiday makers.
Student accommodation near universities like Curtin, UWA, or ECU can provide consistent rental income, though requires understanding of student rental patterns and seasonal variations.
The key is matching property type and location to your target tenant demographic while ensuring the rental yield justifies the investment risk and management requirements.
Which areas offer the best prospects for resale value growth?
Perth's emerging and gentrifying suburbs currently offer the strongest prospects for capital growth and future resale value appreciation.
West Perth, Riverton, Morley, and Burswood are showing the strongest year-on-year price increases and attracting significant buyer attention. These suburbs benefit from proximity to employment centers, transport infrastructure, and urban renewal projects that drive long-term value growth.
Gentrifying areas like Armadale, East Cannington, and Baldivis offer excellent growth potential due to urban rezoning, infrastructure investment, and changing demographics. These suburbs are transitioning from budget options to sought-after locations as Perth's population grows and spreads.
Brabham and other master-planned communities in Perth's growth corridors provide strong prospects due to planned infrastructure, community amenities, and the appeal of new housing stock to families and investors.
Inner-ring suburbs undergoing urban consolidation and apartment development, such as Cloverdale and Maylands, offer growth potential as Perth densifies and these areas become more connected to employment and entertainment precincts.
The key is identifying suburbs in the early stages of improvement cycles before mainstream recognition drives prices beyond value territory.
How have Perth property prices changed over recent years?
Perth property prices have experienced significant growth over the past year and strong recovery over the past five years following earlier market corrections.
Annual growth from 2024 to 2025 has been impressive, with median Perth house prices increasing by 8.6-11.8% and units rising by 6.5%. This represents one of the strongest annual growth periods in recent Perth property market history.
Over the past five years since 2020, Perth has recorded cumulative growth of approximately 25.9% from the COVID-related market trough. The market experienced acceleration from 2022 onward, with growth moderating but remaining positive through 2025.
This growth pattern shows houses outpacing units in capital appreciation rates, though units are catching up in rental yield performance. The price recovery has been broad-based across different suburbs and property types, indicating fundamental market strength rather than speculative activity.
The sustained growth reflects Perth's improving economic fundamentals, population growth, infrastructure investment, and relative affordability compared to other Australian capital cities.
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What are the forecasts for Perth property prices over the next 1, 5, and 10 years?
| Forecast Source | 2025 Growth | 5 Year Outlook | 10 Year Outlook |
|---|---|---|---|
| Domain Research | +6-9% | Continued growth above national average | Strong performer vs other capitals |
| NAB Property Insights | +8% | High investor interest maintained | Resilient secondary market performance |
| SQM Research | +5-10% | "Undervalued" market to outperform | High growth due to migration |
| Industry Consensus | +6-8% | Outpaces Sydney/Melbourne | Lower volatility, higher yields |
| REIWA Analysis | +7-9% | Infrastructure-driven growth | Population growth supports demand |
| Market Expectation | Moderate from 2026 | Above-average capital growth | Strong yield + growth combination |
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 opportunities across different price points and investment strategies, from affordable growth suburbs to premium waterfront locations.
The combination of strong rental yields, continued capital growth, and relative affordability compared to other Australian capitals makes Perth an attractive property investment destination for 2025 and beyond.
Sources
- PropertyNXT Australia - Perth Property Analysis
- Holdsworth - Perth Million Dollar Club
- Plunkett Homes - Best Suburbs Perth 2025
- REIWA - Perth Unit Investment Returns
- Real Estate Business - Perth Million Dollar Suburbs
- REIWA - Perth Top Performing Suburbs
- Canstar - Best Perth Suburbs
- OpenAgent - Perth Property Market
- Here Property - Perth Market Predictions 2025
- Blackburne Property Management - Perth Investment Suburbs