Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Perth's property market is included in our pack
Perth's property market in 2025 stands as one of Australia's most compelling investment destinations.
With median house prices reaching $869,689 and strong population growth of 3.1% annually, Perth continues to outperform most Australian capitals while maintaining relatively affordable entry points for both investors and homebuyers.
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As of September 2025, Perth's property market shows strong fundamentals with 6% annual house price growth and record-low vacancy rates around 1.3-2.5%.
Population growth of 3.1% annually and robust employment conditions continue driving demand, with experts forecasting Perth could become Australia's next million-dollar median price city by late 2026.
| Market Indicator | Current Status (Sept 2025) | 12-Month Change |
|---|---|---|
| Median House Price | $869,689 | +6% increase |
| Median Unit Price | $615,528 | +10% increase |
| Weekly House Rent | $685 | Steady growth |
| Weekly Unit Rent | $650 | Steady growth |
| Rental Yield | 4.29% | -0.04% decrease |
| Vacancy Rate | 1.3-2.5% | Slight increase from record lows |
| Population Growth | 3.1% (72,700 people) | Australia's fastest growth rate |
What's the current median house price in Perth right now?
The median house price in Perth currently sits at $869,689 as of September 2025.
This figure represents a solid position within Australia's capital city property landscape. Perth's median house price remains significantly more affordable than Sydney ($1.4 million) or Melbourne ($1.1 million), making it an attractive option for both first-home buyers and investors.
For units and apartments, the median price is $615,528, providing additional entry points for property buyers. The price differential between houses and units in Perth offers flexibility for different budget ranges and investment strategies.
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How has the median house price changed over the past 12 months?
Perth's median house prices have increased by approximately 6% over the past 12 months.
This growth rate demonstrates sustained market strength while remaining more moderate than some other Australian capitals. The 6% increase reflects healthy market conditions without the extreme volatility seen in markets like Sydney or Melbourne during their peak periods.
Units have performed even stronger, with price increases exceeding 10% over the same period. This suggests growing demand for apartment living, particularly among younger buyers and investors seeking more affordable entry points.
The consistent upward trajectory indicates Perth's market has found stable footing after years of more volatile performance following the mining boom and subsequent correction.
What's the current median rent for houses and apartments in Perth?
As of September 2025, the median weekly rent in Perth is approximately $685 for houses and $650 for units.
These rental rates have experienced steady growth throughout 2025, driven by extremely tight vacancy conditions and strong population inflow. The house rental market shows particular strength, with many landlords achieving premium rates in sought-after suburbs.
Unit rentals at $650 per week provide a more accessible option for tenants while still delivering solid returns for investors. The relatively small gap between house and unit rents reflects the overall market tightness.
Perth's rental rates remain competitive compared to eastern capital cities, where similar properties often command 30-50% higher weekly rents.
How much have rental yields shifted in the last year?
Perth's gross rental yields currently sit at 4.29%, down marginally from 4.33% twelve months ago.
This slight decline reflects the natural market adjustment as property prices have grown faster than rental increases. Despite the minor decrease, Perth's yields remain among the most attractive in Australia's capital cities.
The yield compression of just 0.04% demonstrates the market's resilience and the balance between capital growth and rental income. Most investors continue to achieve strong total returns when combining yield with capital appreciation.
For context, Perth's 4.29% yield substantially outperforms Sydney (around 3.2%) and Melbourne (approximately 3.8%), making it particularly appealing for yield-focused investors.
What's the vacancy rate in Perth, and how has it trended recently?
Perth's vacancy rate remains critically low at between 1.3% and 2.5% as of September 2025.
| Time Period | Vacancy Rate | Market Condition |
|---|---|---|
| September 2025 | 1.3-2.5% | Extremely tight |
| March 2025 | 2.5% | Very tight |
| Late 2024 | Under 2% | Record lows |
| Historical Average | 3-4% | Balanced market |
| Landlord Favorable | Under 2% | High rental growth potential |
While slightly elevated from last year's record lows under 2%, the current vacancy rate still represents one of Australia's tightest rental markets. This creates strong leverage for landlords and continued upward pressure on rental prices.
How many properties are currently listed for sale compared to last year?
Property listings in Perth have surged 5.1% year-on-year, with active listings reaching their highest levels in three years.
This increase reflects growing seller confidence as property owners capitalize on strong market conditions. The higher listing volumes provide more choice for buyers while indicating vendors feel optimistic about achieving premium prices.
Despite increased stock levels, the market continues to favor sellers due to sustained buyer demand. Many properties still receive multiple offers, particularly in well-located suburbs with good amenities and transport links.
The combination of more listings and continued strong demand suggests a maturing market that's moving toward better balance while maintaining upward price momentum.
What's the average time a property stays on the market before selling?
Properties in Perth continue to sell quickly, with average days on market remaining low across most suburb categories.
Rental properties achieve particularly rapid lease-up times, averaging around 16 days from listing to tenancy commencement. This reflects the extremely tight rental market conditions and high tenant demand.
Sales transactions vary by location and property type, but well-priced properties in desirable areas often receive offers within the first few weeks of listing. Premium properties and unique homes may take longer, but still typically sell faster than historical averages.
The quick turnaround times indicate continued market momentum and strong buyer confidence, despite slightly increased listing volumes providing more choice.
Are new housing developments and construction approvals rising or falling?
Western Australia recorded a significant 47.9% annual increase in new dwelling approvals, with total approvals trending higher over the 12-month period.
This surge in approvals signals developer confidence and recognition of strong underlying demand. Government initiatives to streamline approval processes and encourage housing supply have contributed to this positive trend.
However, actual construction completions continue to lag approvals due to labor shortages, material costs, and development bottlenecks. The gap between approvals and completions means supply constraints persist despite increased development activity.
Monthly approval figures remain volatile, but the annual trend clearly points toward increased housing supply coming online over the next 18-24 months, which should help moderate price growth.
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How are interest rates impacting borrowing capacity and buyer demand in Perth?
Recent RBA rate cuts have reduced the cash rate to 4.10%, providing modest relief for borrowers and slightly boosting buyer capacity.
Lower interest rates have improved borrowing power for many buyers, with typical borrowers gaining access to an additional $30,000-50,000 in lending capacity compared to peak rate periods. This has intensified competition among buyers, particularly in the first-home buyer segment.
Despite improved borrowing conditions, lending standards remain tight with banks maintaining strict serviceability requirements. Pre-approval processes continue to be thorough, requiring strong financial positions from borrowers.
If rates continue to fall as some economists predict, buyer demand could intensify further, potentially accelerating price growth beyond current forecasts. Conversely, any unexpected rate increases could quickly cool market activity.
What population growth or migration trends are influencing housing demand?
Greater Perth experienced population growth of 3.1% in the past year, adding approximately 72,700 new residents.
- International migration surge: Overseas arrivals contribute the largest component, with skilled workers attracted to WA's strong job market
- Interstate migration: Australians from eastern states relocate for affordability and lifestyle benefits
- Growth corridor pressure: Suburbs like Alkimos, Brabham, and Baldivis-North face intense housing demand from new arrivals
- Infrastructure-driven demand: Major projects like Metronet rail expansions attract residents to previously overlooked areas
- Regional to city migration: Rural WA residents move to Perth for employment and education opportunities
This represents Australia's fastest capital city population growth rate, creating immediate pressure on housing supply and sustaining strong rental demand across all property types.
How are local job growth and income levels affecting affordability?
Western Australia recorded a robust 4.2% rise in employment over the past year, with unemployment sitting at just 3.6%.
The state's diversified economy continues generating opportunities across mining, construction, healthcare, and emerging technology sectors. Average wages have increased steadily, though not quite matching the pace of property price growth in some suburbs.
Mining sector wages remain particularly strong, with many workers earning well above national averages. This creates a substantial pool of buyers with high borrowing capacity, supporting premium price levels in many areas.
However, affordability challenges persist for essential workers like teachers, nurses, and hospitality staff. The gap between wage growth and property price increases means many middle-income earners face stretched budgets when entering the market.
It's something we develop in our Australia property pack.
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 are experts forecasting for Perth's property prices over the next 12 months?
Property analysts forecast Perth's median house price could reach $982,000 by mid-2026 and potentially cross the $1 million threshold by late 2026.
This projection represents continued strong growth of approximately 12-15% over the next 12 months. Several major banks and research firms have upgraded their Perth forecasts, citing sustained population growth and supply constraints as key drivers.
The consensus view suggests Perth will join Sydney and Melbourne as a million-dollar median price city within the next 18 months. This milestone would represent a significant psychological shift in the market and Australia's property landscape.
However, forecasts include important caveats around potential economic shocks, significant interest rate increases, or major supply releases that could moderate growth rates.
What rental market predictions do experts have for the next year?
Rental price growth is expected to continue but at a more moderate pace than recent years as new supply gradually improves market balance.
| Property Type | Current Weekly Rent | 12-Month Forecast |
|---|---|---|
| 3-bedroom houses | $685 | $720-740 (+5-8%) |
| 2-bedroom units | $650 | $680-700 (+5-7%) |
| 1-bedroom units | $480-520 | $510-550 (+6-8%) |
| Premium properties | $900-1,200+ | $950-1,300+ (+5-10%) |
Most analysts expect rental growth to moderate to 5-8% annually as construction completions increase and population growth stabilizes. The era of double-digit rental increases appears to be ending.
Are there any market risks investors should consider?
Several potential risks could impact Perth's property market trajectory over the next 12 months.
Affordability constraints represent the primary concern, as median prices approaching $900,000 stretch many buyers' budgets. If wage growth fails to keep pace with property price increases, demand could soften significantly.
Credit tightening poses another risk, with banks potentially implementing stricter lending criteria if economic conditions deteriorate. Higher serviceability requirements could reduce the pool of qualified buyers.
External economic shocks, including global commodity price volatility or significant interest rate increases, could rapidly change market dynamics. Perth's economy remains sensitive to mining sector performance and international trade conditions.
It's something we develop in our Australia property pack.
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 outlook for 2025-2026 appears exceptionally strong, with all key indicators pointing toward continued growth and investor opportunity.
The combination of Australia's fastest population growth, tight rental markets, and relatively affordable entry points compared to eastern capitals positions Perth as a standout investment destination for the coming year.
Sources
- Your Mortgage - Median House Prices Around Australia
- OpenAgent - Perth Property Market
- Australian Bureau of Statistics - Regional Population
- Approved Financial Planners - Western Australia's Economy
- Here Property - Perth Rental Trends
- Here Property - Perth Market Update
- REIWA - Perth Vacancy Rate March
- REIWA - Perth Property Listings Surge
- SBS News - Australia's Next Million Dollar City
- Simply Wealth Group - 2026 Housing Market Forecast