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Perth's property market continues its impressive performance as we reach mid-2025, with house prices climbing 18.0% annually and unit prices surging even faster at 20.7%.
The median house price in Greater Perth now sits between $780,000 and $848,980, while units have reached $535,000 to $607,022, marking record highs for both property types. This sustained growth, driven by strong population increases, limited housing supply, and recent interest rate cuts, positions Perth as one of Australia's strongest property markets.
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Perth property prices have surged 18-21% annually, with the median house price reaching $780,000-$848,980 and strong growth expected to continue through 2025.
Infrastructure investments, population growth of 2.8% annually, and RBA rate cuts are driving demand, though growth is moderating from 2024's exceptional performance.
| Property Type | Median Price (June 2025) | Annual Growth | 2025 Forecast |
|---|---|---|---|
| Houses | $780,000–$848,980 | 18.0–19.2% | 4–10% |
| Units | $535,000–$607,022 | 20.7–21.0% | 5–8% |
| Combined Dwellings | $813,810 | 17.1% | 4–6% |
| Villas | $520,000–$550,000 | 25.6% | 6–8% |
| Median Weekly Rent (Houses) | $670 | 8.0% | Stabilizing |
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.
What's the current median house price in Perth as of June 2025?
Perth's median house price has reached record levels, with different data sources showing prices between $780,000 and $848,980 as of June 2025.
According to REIWA data updated in June 2025, the median house sale price stands at approximately $780,000, representing strong growth from the previous year. Meanwhile, Cotality (formerly CoreLogic) reports a slightly higher median of $848,980 for Greater Perth houses. The variation in these figures comes from different methodologies and geographical boundaries used by each organization.
The combined median dwelling price, which includes both houses and units, sits at $813,810 according to recent market analysis. This represents a significant milestone for Perth property, with prices having grown 18.0% to 19.2% over the past 12 months. The Perth residential market has shown remarkable resilience, with median prices increasing month after month throughout 2024 and continuing into 2025.
For units and apartments, the median price ranges from $535,000 to $607,022, depending on the data source. This segment has actually outperformed houses in terms of percentage growth, with annual increases of 20.7% to 21.0%. The strong performance reflects buyers seeking more affordable entry points into the Perth property market.
These price levels represent new records for Perth, surpassing the previous peak of $545,000 set in 2014 by 36.7% for houses. The current boom has been more sustained and broad-based than previous cycles, supported by strong fundamentals rather than speculation.
How much have Perth property prices increased in the last 12 months?
Perth property prices have experienced exceptional growth over the past year, with houses rising 18.0% to 19.2% and units surging 20.7% to 21.0% annually.
The house price growth of nearly 20% represents the strongest annual performance since the 2006-07 boom, with some months in 2024 recording growth rates as high as 24.8%. This remarkable increase added approximately $140,000 to the median house price compared to June 2024. Units have performed even better in percentage terms, with their 21% annual growth reflecting strong demand from both investors and first-home buyers seeking affordability.
Specific property types have shown varying performance levels. Villas emerged as the top performers with a stunning 25.6% increase in median sale prices over the 12 months. Home units rose 22.1%, while townhouses and other dwelling types increased by 24.4%. This diversity in growth rates indicates broad-based demand across all property segments in the Perth market.
The monthly growth pattern has been consistently positive, though showing signs of moderation as we enter mid-2025. January 2025 saw a 1.4% monthly increase, followed by more modest gains of 0.2% to 0.4% in subsequent months. This suggests the market is transitioning from the explosive growth phase of 2024 to a more sustainable pace.
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Which Perth suburbs have seen the biggest price increases lately?
Several Perth suburbs have recorded extraordinary price growth, with some areas experiencing increases exceeding 40% in just 12 months.
Cottesloe units lead the pack with an astonishing 49.9% annual growth, while Camillo houses surged 45.7% over the same period. Other standout performers include Gosnells units (up 52.6%), Marmion houses (up 55.3%), and Butler houses (up 28.6%). These exceptional gains reflect both catch-up growth in previously undervalued areas and strong demand in premium coastal locations.
Recent monthly data from early 2025 shows continued momentum in specific suburbs. Scarborough recorded 2.7% growth in January alone, reaching a median of $1,204,000, while Dawesville grew 2.5% to $717,500. Other strong monthly performers included Camillo (up 1.8%), Greenfields (up 1.7%), and Port Kennedy (up 1.5%).
| Suburb | Property Type | Annual Growth | Current Median Price |
|---|---|---|---|
| Cottesloe | Units | 49.9% | $1,100,000+ |
| Gosnells | Units | 52.6% | $435,000 |
| Marmion | Houses | 55.3% | $2,170,000 |
| Camillo | Houses | 45.7% | $580,000 |
| Butler | Houses | 28.6% | $675,000 |
| Scarborough | Houses | 25%+ | $1,204,000 |
| Middle Swan | Houses | 22% | $650,000 |
The eastern suburbs are emerging as new hotspots, with areas like Middle Swan, Stratton, Midvale, High Wycombe, and Maida Vale identified as having significant potential. These suburbs offer larger block sizes suitable for urban infill development and are benefiting from infrastructure improvements.
Coastal and near-city suburbs continue to attract premium prices, but the most dramatic percentage gains have occurred in more affordable areas where buyers seek value. This pattern reflects the ripple effect as buyers priced out of expensive suburbs move to adjacent areas.
What are Perth property price forecasts for 2025 and 2026?
Property experts predict Perth house prices will grow between 4% and 10% in 2025, with most forecasts clustering around 5-6% growth.
REIWA, the state's peak real estate body, forecasts growth of 5-10% for 2025, representing a moderation from 2024's exceptional 24.2% increase. This would push the median house price to between $820,000 and $856,000 by year-end. NAB economists project 5.8% growth for houses, while Westpac has a more conservative forecast of 4.0%. KPMG predicts houses will rise 4% in 2025, followed by stronger 6% growth in 2026.
Unit prices are expected to perform slightly better, with forecasts ranging from 5% to 8% growth in 2025. This continued outperformance reflects ongoing affordability pressures pushing buyers toward more affordable property types. By the end of 2025, median unit prices could reach $560,000 to $650,000, depending on which forecast proves accurate.
Looking ahead to 2026, economists expect growth to accelerate slightly as interest rates stabilize at lower levels. KPMG forecasts 6% growth for houses and 5.5% for units in 2026. Some bullish scenarios suggest the median house price could reach $966,000 by 2030 under conservative estimates, or as high as $1.4 million if current growth trends persist.
The key factors supporting these forecasts include continued population growth, ongoing supply constraints, and the positive impact of interest rate cuts. However, affordability limits and potential economic headwinds could moderate growth from the exceptional levels seen in recent years.
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Which property types in Perth are experiencing the strongest price growth?
Villas and townhouses are leading Perth's property market with the highest price growth rates, outperforming both standalone houses and apartments.
Villas have emerged as the star performers with median price increases of 25.6% over the past 12 months, making them the best-performing unit type in Perth. This exceptional growth reflects strong demand from downsizers and investors seeking low-maintenance properties with good rental yields. The median villa price has climbed to between $520,000 and $550,000, offering a middle ground between apartments and houses.
Townhouses and other attached dwellings have also shown impressive performance, with 24.4% annual growth, particularly in the two-bedroom category. These property types appeal to first-home buyers and young families who want more space than an apartment but cannot afford a standalone house. The combination of affordability and lifestyle benefits has driven sustained demand.
Traditional home units recorded 22.1% growth, while general apartment units increased by 17.9% to 21.0%. Even this "slower" growth rate for apartments significantly exceeds historical averages and reflects the broad-based nature of Perth's property boom. Standalone houses, while recording strong growth of 18.0% to 20.5%, have actually been outpaced by most unit types.
This trend toward stronger performance in attached dwellings represents a shift in market dynamics. As house prices push beyond reach for many buyers, units offer a more accessible entry point while still delivering strong capital growth. This pattern is expected to continue through 2025 as affordability pressures intensify.
How has the RBA's interest rate cut in May 2025 affected Perth property prices?
The Reserve Bank of Australia's 0.25% rate cut in May 2025, bringing the cash rate to 3.85%, has provided additional momentum to Perth's already strong property market.
The immediate impact has been increased borrowing capacity for buyers, with the average borrower saving approximately $76 per month on a $500,000 mortgage, or $153 monthly on a $1 million loan. This improved affordability has translated into stronger buyer activity, particularly in Perth's growth suburbs and affordable segments. The rate cut has effectively added about $12,000 to the borrowing power of average income earners.
Market sentiment has notably improved following the rate cut, with buyer confidence strengthening and FOMO (fear of missing out) beginning to return to some segments. Real estate agents report increased attendance at home opens and faster sales, particularly for well-presented properties in sought-after areas. The psychological impact of falling rates after an extended tightening cycle has been significant.
Following the May cut, property price growth in Perth accelerated slightly, with the market recording a 0.7% increase for the month compared to more modest gains in previous months. This positions Perth as one of the top-performing capitals post-rate cut, with Darwin (1.6%) being the only market to record stronger monthly growth. The sustained momentum suggests the rate cut has reinforced existing market dynamics rather than creating new ones.
Banks have largely passed on the full rate cut to variable-rate borrowers, with all major lenders announcing reductions within days of the RBA decision. This has improved affordability calculations for new borrowers and reduced pressure on existing mortgage holders, supporting both demand and market stability.
What role is population growth playing in Perth's property price increases?
Western Australia's population growth of 2.8% annually ranks among the highest in the nation and serves as a fundamental driver of Perth's property price surge.
The state's population reached 2,169,190 in 2025, with Perth absorbing the majority of new residents. This represents an addition of approximately 60,000 people annually, creating substantial demand for housing. The growth rate of 2.8% significantly exceeds the national average and puts continuous pressure on Perth's already tight housing supply. Each new household requires accommodation, whether rental or purchase, directly impacting property prices.
Migration patterns show Perth attracting both international arrivals and interstate movers, with new skilled migration pathways and regional settlement incentives boosting numbers. The city's relative affordability compared to Sydney and Melbourne, combined with employment opportunities in resources and other sectors, makes it attractive for relocating families. Young professionals and families from the eastern states increasingly view Perth as offering better lifestyle value.
The population surge has particularly impacted rental markets, with vacancy rates dropping to just 0.7% by late 2024 - well below the 3% considered a balanced market. This rental squeeze pushes more people toward purchasing, adding another layer of demand to the sales market. Areas with good infrastructure and amenities are experiencing the strongest population-driven demand.
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How do Perth property prices in June 2025 compare to Sydney and Melbourne?
Perth remains significantly more affordable than Sydney but has now surpassed Melbourne's median house price, marking a historic shift in Australia's property market hierarchy.
As of June 2025, Sydney maintains its position as Australia's most expensive capital with a median house price of $1,486,373, while Melbourne sits at $939,965. Perth's median of $848,980 places it as the fourth most expensive capital, but notably above Melbourne for the first time in recent history. This represents a remarkable turnaround from Perth's previous position as one of the more affordable capitals.
| City | Median House Price | Median Unit Price | 10-Year Growth | Affordability Ratio |
|---|---|---|---|---|
| Sydney | $1,486,373 | $859,811 | 58.9% | 9.8 |
| Melbourne | $939,965 | $614,689 | 42.3% | 7.0 |
| Perth | $848,980 | $607,022 | 58.5% | 7.4 |
| Brisbane | $920,000 | $620,000 | 65% | 8.3 |
Perth's 10-year growth of 58.5% matches Sydney's performance and significantly exceeds Melbourne's 42.3%, demonstrating the city's strong long-term trajectory. This growth has occurred despite Perth experiencing a prolonged downturn from 2014 to 2020, making the recent surge even more remarkable. The rapid catch-up growth has transformed Perth from a market laggard to a national leader.
For investors, Perth still offers better rental yields than Sydney or Melbourne. While Sydney's house rental yield averages just 2.75%, Perth delivers 4.65%, making it more attractive for income-focused investors. This yield advantage, combined with strong capital growth, positions Perth favorably for total returns.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What impact is WA's 2025 infrastructure spending having on property values?
Major infrastructure projects across Perth are creating property hotspots, with suburbs near new transport links and facilities experiencing above-average price growth.
The state government's signature Metronet rail project, despite running behind schedule, continues to drive property values in surrounding areas. This $4.1 billion program delivering 72km of new rail and up to 18 stations has created significant uplift in suburbs along the planned routes. Areas like Ellenbrook, Alkimos, and suburbs along the Thornlie-Cockburn line have seen prices surge in anticipation of improved connectivity. Properties within walking distance of planned stations command premiums of 10-15% over comparable homes further away.
Suburbs benefiting from major infrastructure investment have consistently outperformed the broader market. Scarborough, which has undergone significant beachfront redevelopment, saw prices jump 2.7% in January 2025 alone. Butler and Eglinton, both receiving new infrastructure and land releases, recorded annual growth exceeding 28% and 23% respectively. These suburbs demonstrate how infrastructure investment directly translates to property value increases.
Beyond transport, investments in schools, shopping centers, and community facilities are boosting property appeal in growth corridors. The Perth Airport precinct developments, Elizabeth Quay commercial projects, and numerous suburban shopping center upgrades are creating employment hubs that support residential property values. Areas receiving multiple infrastructure improvements show the strongest price growth.
However, the slow pace of land releases and lengthy construction times are constraining supply despite the infrastructure spending. The median price for new land blocks jumped 38.6% in the past year due to scarcity. Western Australia's average dwelling construction time of 2.47 quarters for houses remains among the longest nationally, limiting new supply and maintaining upward price pressure.
Are there any signs Perth's property market is overheating or approaching a bubble?
Despite rapid price growth, Perth's property market shows no clear evidence of a speculative bubble, with strong fundamentals underpinning current valuations.
Market fundamentals remain robust, supported by genuine supply-demand imbalances rather than speculation. Perth's population growth of 2.8% annually, combined with chronic housing shortages and low unemployment, provides solid justification for price increases. Unlike previous boom periods, lending standards remain prudent with regulatory oversight preventing the loose credit conditions that typically fuel bubbles. The absence of widespread investor speculation differentiates this cycle from the early 2000s bubble.
However, some warning signs are emerging that suggest the market may be approaching a cooling phase. The pace of monthly price growth has moderated from over 2% in late 2024 to 0.2-0.4% in recent months. Properties are taking slightly longer to sell, with days on market extending from 9 days to 11-14 days for houses. Eastern states investor interest has cooled somewhat, reducing one source of demand that drove 2024's exceptional growth.
Affordability pressures are becoming more apparent, with Perth's dwelling value to income ratio reaching 7.4, up from historical levels around 5-6. While still below Sydney's extreme 9.8 ratio, this indicates prices are stretching relative to local incomes. First home buyers increasingly struggle to enter the market despite government assistance programs, potentially limiting future demand growth.
Expert opinion remains divided but generally optimistic. Most analysts see current prices as elevated but justified by market conditions. The gradual moderation in growth rates suggests a soft landing rather than a sharp correction. Historical lessons from Perth's previous cycles have led to more cautious behavior from both buyers and lenders.
Which areas of Perth offer the best investment potential in the current market?
Perth's best investment opportunities lie in emerging eastern suburbs, infrastructure corridors, and affordable areas with strong rental yields.
The eastern suburbs present compelling opportunities with larger block sizes enabling future subdivision potential. Middle Swan, Stratton, Midvale, High Wycombe, and Maida Vale offer houses under $700,000 with strong rental demand. These areas benefit from proximity to employment centers and transport routes while maintaining affordability. Rental yields in these suburbs often exceed 5%, providing solid income while investors wait for capital growth.
Coastal suburbs within the $600,000-$800,000 range offer lifestyle appeal and consistent demand. Areas like Alkimos, Eglinton, and Quinns Rocks combine beach proximity with relative affordability. These suburbs attract both owner-occupiers and renters, ensuring liquidity and rental demand. The completion of nearby infrastructure projects will further enhance their appeal.
| Investment Strategy | Target Suburbs | Price Range | Expected Returns |
|---|---|---|---|
| High Growth Potential | Gosnells, Armadale, Camillo | $400k-$600k | 6-8% growth + 5%+ yield |
| Infrastructure Play | Ellenbrook, Alkimos, Thornlie | $500k-$700k | 5-7% growth + 4.5% yield |
| Coastal Lifestyle | Scarborough, Cottesloe units | $600k-$1.2M | 4-6% growth + 3.5% yield |
| CBD Proximity | Bayswater, Mount Lawley units | $450k-$750k | 4-5% growth + 4% yield |
| Subdivision Potential | Middle Swan, High Wycombe | $600k-$800k | 5-6% growth + development upside |
For yield-focused investors, suburbs like Cannington (5.8% gross yield) and Spearwood units (7.6% yield) offer exceptional returns. The combination of affordable entry prices and strong rental demand in these areas provides immediate positive cash flow. As Perth's rental vacancy rate remains tight at 0.7%, these high-yielding suburbs face minimal vacancy risk.
Development opportunities exist in established suburbs with R20+ zoning where older houses on large blocks can be subdivided. Areas within 15km of the CBD with blocks over 700sqm present potential for dual occupancy or subdivision, adding value beyond simple capital growth.
How long can Perth's property price growth continue at current rates?
Perth's explosive price growth is moderating toward more sustainable levels, with experts predicting the current cycle has another 2-3 years of solid but slower gains.
Market indicators suggest we're transitioning from the boom phase to steady growth. The monthly price increases have already slowed from over 2% to under 0.5%, while annual growth forecasts for 2025 range from 4-10%, down from 2024's 24%. This moderation is healthy and necessary for long-term market stability. Historical patterns show Perth property cycles typically last 7-10 years, and we're approximately 3-4 years into the current upswing.
Several factors support continued but moderated growth through 2027. Population growth remains strong at 2.8% annually, creating ongoing housing demand. The supply pipeline remains constrained with building approvals running well below requirements and construction times extending. Interest rates have peaked and begun declining, improving affordability. The resources sector shows signs of strengthening, which historically correlates with Perth property performance.
However, natural constraints will prevent indefinite rapid growth. Affordability limits are approaching, with the dwelling value to income ratio at 7.4 versus the long-term average of 5-6. Rental growth is already moderating as the market reaches affordability ceilings. Interstate investor interest has cooled as other markets offer better relative value. Credit conditions may tighten if regulators become concerned about market heat.
Expert consensus suggests Perth could see cumulative growth of 15-25% over the next three years before entering a plateau phase. This would push median house prices toward $1 million by 2027-2028, at which point market dynamics would likely shift. Smart investors should prepare for this transition by focusing on quality assets with multiple value drivers beyond simple capital growth.
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 property prices are definitively going up, with annual growth of 18-21% marking one of the strongest performances in the nation. The market fundamentals remain robust, supported by population growth, infrastructure investment, and recent interest rate cuts.
While the explosive growth of 2024 is moderating, Perth's property market shows clear signs of continued upward momentum through 2025 and beyond. Yes, a lot - property prices in Perth are experiencing significant increases and this trend is expected to continue, albeit at a more sustainable pace.
Sources
- REIWA Perth Median House and Unit Prices Report
- Your Mortgage - Median House Prices Around Australia June 2025
- Property Update - Australian Property Market Predictions 2025
- Australian Property Update - Perth Property Boom 2025
- KPMG Residential Property Market Outlook 2025
- API Magazine - Perth's Best and Worst Property Markets 2025
- Reserve Bank of Australia - May 2025 Interest Rate Decision
- OpenAgent - Perth Property Market Data and Forecasts