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 presents compelling opportunities for both investors and owner-occupiers, with unit prices surging over 13% annually while median house prices reach $849,000. The Western Australian capital offers strong rental yields of 5-6%, diverse property options from affordable suburban homes to premium coastal properties, and a lifestyle that attracts both locals and international buyers.
If you want to go deeper, you can check our pack of documents related to the real estate market in Australia, based on reliable facts and data, not opinions or rumors.
Perth's property market in 2025 shows strong fundamentals with median house prices at $849,000 and units at $607,000, offering better value than Sydney and Melbourne. The market favors buyers currently, with increased stock levels and strong rental yields of 5-6% across most suburbs.
Investment opportunities are particularly strong in affordable growth suburbs like Armadale, Clarkson, and Morley, while premium areas near the CBD and coast maintain consistent capital growth potential.
| Property Type | Median Price 2025 | Annual Growth Rate | Rental Yield |
|---|---|---|---|
| Houses | $849,000 | 8-10% | 5-6% |
| Units/Apartments | $607,000 | 13%+ | 5-6% |
| Townhouses | $650,000-$750,000 | 10-12% | 5.5-6.5% |
| Villas | $700,000-$850,000 | 9-11% | 5-6% |
| Premium Properties | $1M+ | 6-8% | 4-5% |
What kinds of properties are available to buy in Perth in 2025?
Perth's property market in 2025 offers a comprehensive range of residential options including detached houses, units, apartments, villas, and townhouses across metropolitan and suburban areas.
The strongest demand currently centers on units, villas, and townhouses due to affordability pressures, with these property types experiencing record price growth rates. Detached houses remain the most common property type but are seeing slower growth compared to higher-density options.
Units and apartments dominate the inner-city and near-CBD markets, offering modern amenities and proximity to employment centers. These range from studio apartments around $400,000 to luxury penthouses exceeding $1.5 million in premium locations like South Perth and the CBD.
Townhouses and villas provide a middle ground between apartments and detached houses, typically featuring 2-4 bedrooms with small private courtyards or gardens. These properties are particularly popular in growth suburbs and new developments.
Detached houses span from entry-level homes in outer suburbs starting around $500,000 to luxury properties in prestigious coastal areas like Cottesloe exceeding $3 million.
Is it better to buy or rent in Perth right now?
Current market conditions in Perth strongly favor buying over renting for most buyers, according to REIWA's Buy-Rent Index analysis.
House price growth rates are well above the threshold where buying outperforms renting from a financial perspective. With median weekly rent for houses at $690 and units at $650, rental costs continue climbing steadily while interest rates have stabilized.
The buying advantage is particularly pronounced for long-term residents planning to stay 5+ years, as ongoing capital growth and rental yield potential offset higher upfront costs. Property buyers benefit from building equity while rental payments provide no ownership return.
However, renting may suit short-term residents, those with limited deposit funds, or buyers waiting for specific market conditions. The decision ultimately depends on individual financial circumstances, timeline, and market expectations.
It's something we develop in our Australia property pack.
How have property prices in Perth changed over the past few years, what are they like today, and what do forecasts say for the next few years?
Perth property prices have experienced significant growth following the post-pandemic recovery, with annual increases of 8-10% for houses and over 13% for units in 2024-25.
As of September 2025, the median house price sits at approximately $849,000, while the median unit price reaches $607,000. These figures represent substantial increases from pre-pandemic levels when median house prices were around $650,000-$700,000.
Major bank forecasts predict continued growth through 2025, with house prices expected to reach $840,000-$856,000 and unit prices $443,000-$447,000 by late 2025. However, growth rates are moderating from the rapid post-pandemic surge.
Most analysts project annual growth of 4-10% for 2025-26, representing a more sustainable pace compared to the recent exceptional increases. The moderation reflects improved stock levels, stabilizing interest rates, and market normalization after the pandemic-driven price surge.
What are the main real estate market trends in Perth at the moment?
Several key trends are shaping Perth's real estate market in 2025, with higher-density properties leading growth patterns.
Units, villas, and townhouses are significantly outpacing detached houses in price appreciation, reflecting affordability-driven demand shifts. This trend indicates buyer preference for more accessible entry points into the property market.
Increased property listings are providing buyers with greater choice and stronger negotiating positions compared to the seller's market of 2021-2023. Properties are taking longer to sell as market conditions balance between buyers and sellers.
Rental markets continue strengthening with median weekly rents reaching $690 for houses and $650 for units, though growth has stabilized compared to the rapid increases of recent years.
Strong investor activity focuses on family-oriented suburbs with good infrastructure connections and affordable price points, particularly areas benefiting from METRONET transport upgrades.
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What's the step-by-step process for buying a property in Perth as a local or an expat?
The property purchase process in Perth follows standard Australian procedures with specific Western Australian requirements.
Begin by researching the market using platforms like realestate.com.au, reiwa.com.au, or Domain to understand pricing and availability in target areas. This research phase helps establish realistic expectations and identify suitable properties.
Secure financing by setting a clear budget and obtaining mortgage pre-approval from banks or brokers, which strengthens negotiating position and speeds up purchase timelines. Pre-approval typically requires income verification, deposit confirmation, and credit assessment.
Engage a qualified real estate agent familiar with your target areas and property types. Attend open homes and private inspections, conducting building and pest inspections for properties of serious interest.
Make formal offers through private negotiation or prepare for auction participation, depending on the sale method. Successful offers lead to contract signing and deposit payment, typically 10% of purchase price.
Complete conveyancing through licensed practitioners, pay stamp duty and associated legal fees, then proceed to settlement where ownership transfers and remaining funds are paid.
Where can I actually find properties for sale—are there trusted real estate agencies, websites, or local networks worth checking?
Multiple reliable platforms and agencies serve Perth's property market, offering comprehensive listing coverage and professional services.
REIWA.com.au serves as the official Real Estate Institute of Western Australia platform, providing broad listings with detailed suburb profiles and market data. This platform offers the most comprehensive WA-specific coverage.
Realestate.com.au operates as Australia's largest listing platform with extensive Perth coverage, advanced search filters, and price guidance tools. Domain.com.au provides national coverage with detailed market analysis and property insights.
Perth Realty Group in Maylands offers trusted local agency services for residential and commercial properties, with excellent reviews and professional accreditation. Always verify agent licensing and check reviews before engaging services.
Local networks through community groups, referrals, and off-market opportunities can provide access to properties before public listing, though these require established connections and local knowledge.
What types of properties can you get for different budgets in Perth?
Perth's property market accommodates various budget levels, from entry-level buyers to luxury purchasers across different suburbs and property types.
| Budget Range | Property Types Available | Typical Locations |
|---|---|---|
| $400,000-$600,000 | Entry-level units, townhouses, older homes | Armadale ($570K median), Mandurah ($560K median) |
| $600,000-$800,000 | Modern units, mid-size houses | Morley ($685K), Clarkson ($530K), East Cannington ($598K) |
| $800,000-$1,000,000 | Newer homes, premium townhouses | Inner suburbs, growth areas near infrastructure |
| $1,000,000+ | Luxury homes, premium locations | CBD, coastal suburbs, prestigious areas |
| $1,500,000+ | Luxury detached homes, penthouses | Cottesloe, South Perth, premium beachside |
What are the most common mistakes buyers make when purchasing property in Perth, and how can I avoid them?
Perth property buyers frequently encounter avoidable pitfalls that can result in financial losses and purchase complications.
The most common mistake involves inadequate budget planning and failing to secure finance pre-approval before property hunting. This leads to disappointment when suitable properties exceed actual borrowing capacity or when financing falls through during purchase.
Insufficient due diligence on location factors, zoning restrictions, and property defects causes long-term problems. Buyers often skip building and pest inspections or fail to research future development plans that could impact property values.
Not engaging licensed conveyancers for contract review and legal processes creates legal and financial risks. Professional guidance helps navigate complex contracts and ensures compliance with Western Australian property laws.
Underestimating additional costs including stamp duty, legal fees, building inspections, and moving expenses strains budgets beyond property purchase prices. Factor in 5-7% of purchase price for additional costs.
To avoid these mistakes, work with reputable professionals, conduct thorough research, maintain realistic budgets, and allow adequate time for proper due diligence processes.
How does the cost of living in Perth compare to the rest of Australia and to other major cities worldwide?
Perth maintains a more affordable cost structure compared to Australia's eastern capitals, though housing costs have increased significantly since 2021.
Housing represents the major cost advantage, with Perth property prices typically 20-30% lower than Sydney and Melbourne equivalents. This affordability extends to rental markets, utilities, and general living expenses.
Overall living costs including groceries, transport, and services remain moderate compared to other Australian capitals and lower than most Western global cities. Perth ranks favorably against major international cities for lifestyle value.
However, Perth's costs are higher than many Asian cities, reflecting Australia's generally higher wage levels and living standards. The city's rise as an expat destination partly stems from its combination of affordability and quality of life.
Neighborhood variation significantly impacts living costs, with premium areas near the coast or CBD commanding higher prices while suburban locations offer better value for families and budget-conscious residents.
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.
Which areas of Perth are the best to buy in—affordable neighborhoods, upcoming spots, and upscale suburbs—and what are the strengths and weaknesses of each?
Perth's property markets vary significantly by location, offering opportunities across affordable, growth, and premium segments.
Affordable and upcoming areas include Armadale, Baldivis, Mandurah, Clarkson, Pinjarra, and East Cannington. These suburbs offer strong value for money, family-focused amenities, and developing infrastructure including METRONET connections. Weaknesses include slower historical capital growth and longer commutes to CBD employment centers.
Growth suburban markets like Morley, Hammond Park, and Willagee provide good rental yields with gentrification potential and proximity to transport upgrades. These areas balance affordability with growth prospects but may lack the prestige of established suburbs.
Upscale and premium locations encompass the CBD, coastal suburbs like Cottesloe, and established areas like South Perth. These offer prime locations, lifestyle amenities, and consistent demand but require higher entry costs and may have lower rental yields.
Investment success depends on matching location characteristics with individual goals, whether prioritizing capital growth, rental yield, lifestyle, or combination factors.
It's something we develop in our Australia property pack.
What's life like for expats in Perth—socially, culturally, and in terms of integration and opportunities?
Perth offers an attractive lifestyle for international residents, combining cultural diversity with outdoor recreation and professional opportunities.
The social environment proves welcoming for expats, with established international communities and English-speaking advantages facilitating integration. Perth's relaxed culture and diverse population create inclusive environments across most neighborhoods.
Cultural amenities include vibrant café scenes, restaurants, galleries, and outdoor lifestyle opportunities taking advantage of Mediterranean climate and coastal location. Beach culture, wine regions, and natural attractions provide recreational diversity.
Professional opportunities center on mining, healthcare, education, and hospitality sectors, with Perth serving as a regional hub for resource industries. The established expat community provides networking and support systems for newcomers.
Integration varies by suburb and personal initiative, with some areas offering stronger multicultural communities while others provide more traditional Australian experiences. Most expats highlight excellent work-life balance and employment market strength as key Perth advantages.
If I want to rent out my property, what's the outlook for long-term rentals and for short-term rentals?
Perth's rental market offers strong opportunities for both long-term and short-term rental strategies, with yields consistently reaching 5-6% across most property types.
Long-term rental markets benefit from diverse tenant profiles including professionals, families, and students attracted by local universities and ongoing migration. Tenant demand remains strong with low vacancy rates across most suburbs.
Best rental yield areas include Armadale (5.9%), Clarkson (5.7%), Morley (5.2%), and East Cannington (5.4%), offering strong returns for investors. These suburbs combine affordability with rental demand from various tenant segments.
Short-term rentals experience high demand in CBD, beachside, and tourist areas, particularly during peak seasons. Guest profiles include interstate visitors, international tourists, and business travelers seeking temporary accommodation.
Short-term rental regulations require compliance with local council guidelines, registration requirements, and platform-specific rules. Check with the City of Perth and relevant local councils for specific compliance requirements before listing properties.
Both rental strategies can succeed with proper property selection, professional management, and understanding of target tenant or guest markets.
So overall, in 2025, is it really worth buying property in Perth—for living there, renting out, or reselling later at a higher price?
Perth property investment in 2025 presents compelling value propositions across owner-occupier and investment scenarios, supported by ongoing price growth and strong rental yields.
For owner-occupiers, Perth offers better value than eastern capitals while maintaining strong lifestyle amenities and employment opportunities. Current market conditions favor buyers with increased stock levels and moderated competition compared to recent years.
Investment prospects remain attractive with rental yields of 5-6%, ongoing population growth, and infrastructure development supporting long-term demand. Units and affordable suburbs are leading capital growth, benefiting both investors and first-time buyers.
Resale potential benefits from Perth's position as Australia's fourth-largest city with diverse economic drivers including mining, education, and services sectors. Infrastructure investments and planned developments support continued growth prospects.
However, buyers should focus on well-located, infrastructure-rich areas to maximize upside potential and manage investment risks. The moderation in price growth rates suggests more sustainable market conditions ahead.
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 in 2025 demonstrates solid fundamentals with diverse opportunities across budget ranges and property types.
Success requires careful location selection, proper due diligence, and alignment with personal financial goals and market timing.