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Yes, the analysis of Perth's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Subiaco? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other suburbs like Mount Lawley or Fremantle where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Perth Property Pack.
Will property prices increase in Perth in 2025?
Yes, property prices in Perth are expected to rise in 2025, driven by a combination of strong demand and favorable economic conditions.
Backed by our fresh, in-depth market analysis, we’re confident that Perth remains an attractive market for both local and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the main drivers behind Perth’s price growth are robust and persistent.
Demand, particularly in desirable suburbs, continues to outpace supply, making significant price declines unlikely. Additionally, Perth's growing economy and lifestyle appeal keep attracting buyers.
Signals pointing to a property price increase in Perth
Here are some factors suggesting prices could increase:
The ongoing population growth in Perth, driven by both interstate and international migration, is expected to continue in 2025, increasing demand for housing and putting upward pressure on prices.
Perth's economy is projected to remain strong, supported by the mining and resources sector, which is likely to boost employment and income levels, thereby enhancing the purchasing power of potential homebuyers.
Infrastructure developments, such as new transport links and urban renewal projects, are set to improve accessibility and livability in various suburbs, making these areas more attractive to buyers and potentially increasing property values.
The limited availability of land for new housing developments in popular areas is expected to constrain supply, contributing to price increases as demand remains steady.
Government incentives for first-time homebuyers and investors, such as grants and tax benefits, are likely to stimulate demand in the property market, supporting price growth.
The trend of remote working is encouraging more people to move to Perth for its lifestyle benefits, increasing demand for residential properties in the city.
A stable political and economic environment in Australia is expected to maintain investor confidence, attracting both domestic and foreign investment into Perth's property market.
Signals pointing to a property price decrease in Perth
Here are some factors suggesting prices could fall:
Potential interest rate hikes could increase borrowing costs, making it more difficult for buyers to afford homes, which might dampen demand and slow price growth.
Rising construction costs could lead to higher prices for new homes, potentially reducing affordability and demand in the new housing market.
Economic uncertainties, such as global market fluctuations or changes in commodity prices, could impact Perth's economy and, in turn, affect the property market negatively.
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If property prices go up in Perth, how much would they increase by?
If real estate prices in Perth were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in growing markets like Perth appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, economic conditions, and property type.
It means that, if you spot a charming 3-bedroom house in Subiaco for 850,000 AUD today, don't be surprised if it's priced between 875,500 and 909,500 AUD this time next year.
To give you a better understanding, here is a table that shows 7 types of Perth real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
Type of Property | Average Price in 2024 (AUD) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
---|---|---|---|---|
Suburban House (150 sqm / 1,615 sqft) | 850,000 AUD | 875,500 AUD | 892,500 AUD | 909,500 AUD |
City Apartment (80 sqm / 861 sqft) | 600,000 AUD | 618,000 AUD | 630,000 AUD | 642,000 AUD |
Luxury Penthouse (120 sqm / 1,292 sqft) | 1,500,000 AUD | 1,545,000 AUD | 1,575,000 AUD | 1,605,000 AUD |
Studio Apartment (40 sqm / 431 sqft) | 300,000 AUD | 309,000 AUD | 315,000 AUD | 321,000 AUD |
Beachfront Villa (200 sqm / 2,153 sqft) | 2,000,000 AUD | 2,060,000 AUD | 2,100,000 AUD | 2,140,000 AUD |
Townhouse (100 sqm / 1,076 sqft) | 700,000 AUD | 721,000 AUD | 735,000 AUD | 749,000 AUD |
Investment Property (60 sqm / 646 sqft) | 500,000 AUD | 515,000 AUD | 525,000 AUD | 535,000 AUD |

Everything you need to know is included in our Property Pack for Perth
If real estate prices go up in Perth, which areas are likely to see the biggest increases?
Today, people who want to move to Perth are looking for a blend of natural beauty, modern amenities, and a vibrant social scene, which Subiaco offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Northbridge has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Perth market.
Neighborhood | Level of Increase | Why |
---|---|---|
Subiaco | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
Fremantle | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Perth. |
Mount Lawley | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
Perth CBD | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
Leederville | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
South Perth | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
Scarborough | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
Northbridge | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
Cottesloe | Medium-High | Its proximity to the beach, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
Victoria Park | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
Applecross | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
Kings Park | High | Upcoming restoration projects and high-profile cultural events are driving a renewed focus on this central, scenic location. |
-The best areas to buy a property in Perth
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Perth?
In 2025, Perth real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Homes in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Perth, such as Joondalup and Canning Vale, are seeing increased interest. Proximity to parks, beaches, and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In a city like Perth, known for its beautiful weather, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Perth's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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