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
What will happen in Perth’s real estate market? Will prices go up or down? Is Perth still a hotspot for foreign investors? How is Australia’s government impacting real estate policies and taxes in 2025?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with real estate agents, property developers, and clients who buy properties in Perth, we’ve gained firsthand insights.
That’s why we created this article: to provide clear answers, insightful analysis, and a well-rounded perspective on market predictions and forecasts.
Our goal is simple: to ensure you feel informed and confident about the market without needing to look elsewhere. If you think we missed the mark or could do better, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll work hard to improve this content for you.
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1) Perth’s home prices will keep rising due to population growth and limited housing supply
Perth's property market is buzzing, with residential prices steadily climbing thanks to a mix of population growth and limited housing supply.
In 2023, Greater Perth's population jumped by 3.65%, a trend that's been consistent for years. This influx of new residents is driving up demand for homes, making it a hot spot for potential buyers. Imagine the city as a magnet, pulling in people with its vibrant lifestyle and opportunities.
But here's the catch: the construction sector is struggling to keep up. Fewer new homes are being built, and this shortage is pushing prices higher. In fact, despite high interest rates, property prices soared by over 20% in 2024. The scarcity of land for new developments only adds to the challenge, making it tough to expand the housing supply.
Perth's job market is another big draw. With strong employment opportunities, more people are flocking to the city, further boosting housing demand. Economic forecasts are optimistic, predicting ongoing job growth that supports the upward trend in property prices.
Real estate analysts are buzzing with predictions. They suggest that property prices in Perth could rise by 14 to 19% in 2025. This is fueled by solid employment growth and a steady increase in population, making it a promising time for investors and homebuyers alike.
So, if you're considering buying property in Perth, keep an eye on these trends. The combination of limited housing supply and a growing population is setting the stage for continued price increases, making it a potentially lucrative investment.
Sources: Domain, Profile ID, Sherlock HG
2) Property values in the southern suburbs will rise steadily as retirees seek a quieter lifestyle
The southern suburbs of Perth are becoming a hotspot for retirees, leading to a steady rise in property values.
Take Shelley, for example, where the median house price jumped by 29.7% in 2023, reaching $1.14 million. This surge reflects a strong demand for homes, especially from those seeking a quieter lifestyle. It's not just Shelley; suburbs like Seville Grove and Mount Pleasant are also seeing significant rent hikes, with increases of 38.1% and 34.6% respectively. This trend underscores the high demand for housing, pushing property values even higher.
What makes these areas so appealing? Surveys and lifestyle publications often highlight their charm, particularly for retirees. The development of retirement-friendly amenities is a big draw. For instance, Cambrai Village offers fully maintained three-bedroom duplexes and a 79-bed residential care facility, catering specifically to retirees' needs. These amenities, along with improved public transport and infrastructure, make the southern suburbs increasingly desirable.
Retirement villages are popping up, offering a range of services that make life easier and more enjoyable for retirees. This development is a clear sign of the growing popularity of these areas. The southern suburbs are not just about homes; they're about a lifestyle that appeals to those looking for peace and convenience.
As these suburbs continue to evolve, they attract more retirees, further driving up property values. The combination of a peaceful environment, modern amenities, and a strong community feel makes these areas a top choice for those looking to settle down in a quieter setting.
Sources: REIWA, Property Clearance, Savings.com.au, SwanCare
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.
3) Rental yields in Perth's luxury market will stay steady as high-income tenants keep seeking premium properties
In 2023, Perth's luxury rental market showed impressive stability, with top suburbs like Medina, Armadale, and Brookdale achieving a 6.3% rental return for houses.
By the end of 2023, rent prices hit record highs and the vacancy rate dropped to a historic low of 0.6%, making it a landlord's market. This means if you're considering investing, you'll likely find tenants quickly and at premium rates.
Perth's population grew by 3.3% to 2.905 million by September 2023, largely due to net overseas migration. This influx included many high-income individuals, which is why Perth boasts four of Australia's five most advantaged suburbs.
The demand for luxury properties in Perth remains strong, driven by affluent individuals and expatriates. This trend is expected to continue, thanks to Perth's stable and growing economy and the development of new luxury properties.
High-income tenants are consistently seeking premium properties, ensuring that rental yields in Perth's luxury market remain stable. This is great news for investors looking for reliable returns.
Sources: Smart Property Investment, World Population Review, API Magazine
4) Rental yields in Perth's inner suburbs will rise as rental demand exceeds supply
In 2023 and 2024, rental prices in Perth's inner suburbs surged, catching the attention of potential property investors.
Take Brookdale, for example, where rents jumped by 23.9% annually, resulting in a rental yield of 6.0%. This wasn't just a one-off; other inner suburbs saw similar trends as demand outstripped supply.
By August 2024, Perth's vacancy rate was at 1.4%, a clear sign of fewer available rentals and a booming demand. This tight market naturally pushed rental prices and yields higher.
Perth's population grew by 3.6% last year, adding 81,300 new residents, thanks to both internal and overseas migration. Suburbs like Bentley, Wilson, and St James saw a notable influx, with 1,700 new overseas arrivals.
New housing developments in the inner suburbs were limited, which only worsened the housing shortage. This scarcity meant existing rentals were in high demand, driving up rental yields.
Economic reports highlighted job growth in Perth’s central business district, likely drawing more residents and boosting demand for rentals in inner suburbs. This job growth was a key factor in the population increase and housing demand.
Sources: Satterley, REIWA, The West Australian, Simply Wealth Group
5) Rental yields in Perth's suburbs will drop as more rental properties become available
In Perth's suburbs, rental market dynamics are shifting noticeably.
Recently, the vacancy rate climbed from 0.4% to 0.7%, indicating more rental properties are available. This uptick suggests that landlords might face challenges in maintaining high rental yields as tenants have more options to choose from.
Adding to this, the state government is pushing for more rental developments by offering a 50% land tax exemption for build-to-rent projects. This incentive is encouraging a surge in new rental properties, which means landlords could find themselves in a more competitive market, potentially lowering rental yields.
Economic reports are also hinting at a slowdown in demand for suburban rentals. Real estate experts note that high-end properties are taking longer to lease, suggesting that the demand isn't quite matching the growing supply. This mismatch can lead to landlords reducing rents to attract tenants.
Media outlets are echoing these sentiments, pointing out an oversupply of rental properties in suburban areas. With more properties than tenants, landlords might have to lower rents to fill vacancies, impacting overall rental yields.
For those considering buying property in Perth's suburbs, it's crucial to understand these dynamics. The combination of increased supply and fluctuating demand could mean that rental yields might not be as robust as they once were.
Sources: REIWA, D Residential, Here Property
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8) Property prices in Perth's mining-dependent areas will dip slightly due to changing commodity prices
Perth's housing market has a history of rising and falling with commodity prices.
When commodity prices dip, areas in Perth that rely on mining often see property values drop. This is because lower commodity prices usually mean less investment in the mining sector, which can hurt local economies and housing markets.
Right now, we're noticing a trend of falling commodity prices, especially for iron ore. This could lead to less investment in mining, potentially lowering property prices in areas heavily dependent on this sector.
Fewer job opportunities in mining due to falling commodity prices can also reduce housing demand. A report by SQM Research highlights Perth's vulnerability to these price changes.
Employment in the mining sector is crucial for Western Australia. If commodity prices keep dropping, it could lead to job losses, which would decrease housing demand.
Past downturns in mining towns show that property markets often suffer when the mining sector struggles. For example, during the last decade, Perth's housing market took a hit when commodity prices fell.
Experts like Louis Christopher from SQM Research have warned that volatility in commodity prices could affect Perth's housing market. He suggests that a major downturn in global commodity markets could end the current boom in Western Australia.
Sources: REIWA, Domain, Broker News, MacroBusiness
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
9) Property values near the Swan River will rise significantly as interest in waterfront living grows
Properties near the Swan River are expected to see a significant appreciation in value due to increased interest in waterfront living.
In Perth, the luxury property market is thriving, especially in areas like Applecross and South Perth, which are close to the water. This boom is largely driven by high-net-worth individuals and a robust local economy. Luxury apartments are becoming a favorite among owner-occupiers, reflecting a broader trend. Historical data shows a 21% increase in residential property prices in Perth over the 12 months leading up to the end of 2024.
Government investment is playing a big role in this trend. By enhancing public amenities along the Swan River, these areas are becoming even more appealing. This investment not only improves the quality of life for residents but also boosts property values by making the area more desirable.
Media reports and buyer preferences show a strong appetite for properties with scenic views, which is further driving interest in waterfront living. The allure of living by the water is not just a local phenomenon; it's part of a global trend. The Knight Frank Global Waterfront Index highlighted a 118% average price increase for waterfront properties worldwide in 2023, underscoring the rarity and desirability of such locations.
In Perth, this trend is particularly evident in the luxury market, where demand is surging. The combination of a strong local economy and the appeal of waterfront living is creating a perfect storm for property appreciation. As more people seek out these prime locations, property values are expected to continue rising.
Sources: World Property Journal, API Magazine, Savings.com.au
10) Demand for single-story homes and retirement communities in Perth will grow as the population ages
The aging population in Perth is driving up demand for single-story homes and retirement communities.
Between 2023 and 2024, Perth saw a noticeable increase in older adults, and by 2031, the population aged 65 and over is projected to rise by 43.1%. This surge means there's a growing need for housing that suits their specific needs. Older adults often prefer homes that are easy to manage and accessible, which is why single-story homes are in high demand.
Surveys show that seniors want to live near friends, family, and essential amenities, making single-story homes an attractive choice. The real estate market in Perth reflects this trend, with increased sales of single-story homes in recent years. This shift is not just about convenience; it's about creating a lifestyle that supports their social and practical needs.
Retirement communities are also on the rise, thanks to initiatives like the McGowan Government's "An Age-Friendly WA: State Seniors Strategy." This strategy aims to provide suitable housing options for seniors, ensuring they have access to communities that meet their needs. High occupancy rates in existing retirement communities show just how much demand there is for these housing solutions.
These communities offer more than just a place to live; they provide a sense of belonging and security. With government support, developers are keen to create environments where seniors can thrive. The focus is on building communities that offer not just housing, but a lifestyle that promotes well-being and social interaction.
Sources: Ageing with Choice Future Directions for Seniors Housing, An Age-Friendly WA: State Seniors Strategy, Population and Age Structure | City of Perth
12) Young families will flock to Perth's northern suburbs as new schools and family-friendly amenities emerge
The northern suburbs of Perth are becoming a magnet for young families, thanks to new school developments.
In 2023 and 2024, construction kicked off on several schools, including the Eglinton South West Primary School, which will open in 2025 for 620 students. This is part of a massive $4.4 billion investment by the Western Australian Labor Government, focusing on educational infrastructure in these suburbs.
These new schools are set to relieve the pressure on existing ones, showing a clear demand for more educational facilities. Young families often look for good schools when deciding where to settle, and the availability of modern, well-equipped schools makes these suburbs very appealing. Plus, new parks and recreational spots, like the award-winning Wellington Square, add to the family-friendly vibe.
Real estate trends reveal a big jump in housing demand in these areas, with some suburbs seeing house prices rise by up to 50% in the past year. This boom is fueled by the combination of new schools and the growth of family-friendly amenities, turning the northern suburbs into a hotspot for young families.
Sources: WA Government, Mirage News, Savings.com.au
14) Virtual reality will transform property marketing in Perth, allowing buyers to view homes remotely more easily
Virtual reality is changing how properties are marketed in Perth, making it easier for buyers to view homes remotely.
By 2025, the global VR in real estate market is set to hit USD 3,161.2 million, showing a big leap from previous years. This growth is clear as 1.4 million real estate agents worldwide are already using VR, and the numbers are climbing. Buyers love virtual tours; 67% prefer them when checking out listings. In fact, more than half of buyers, 54% to be exact, won't even look at a property without a virtual tour.
Homes with virtual tours get 87% more views than those without, and potential buyers spend much more time on these listings. In Perth, more agencies are jumping on the VR bandwagon, offering virtual tours as part of their services. This trend is fueled by advancements in VR tech, making it more accessible and affordable for everyone involved.
VR not only saves time and money for real estate agents by cutting down on in-person viewings but also makes the buying and selling process smoother. It's a win-win for both sides, enhancing the overall experience. The convenience of virtual tours means buyers can explore properties from the comfort of their homes, making it easier to shortlist options before visiting in person.
Sources: The AR/VR Market and Real Estate - Encora, How Virtual Reality Benefits The Real Estate Industry (+Examples), The Revolutionary Impact of Virtual Tours on Real Estate
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.
15) Property values in Perth's underserved areas will rise as the public transport network expands
The expansion of Perth's public transport network is set to increase property values in previously underserved areas.
When new transport links are introduced, more people start using public transport. For example, the Public Transport Authority Annual Report for 2023-24 noted a 17% increase in total boardings. This uptick in usage often leads to higher property values in areas with improved transport access.
Living close to public transportation can significantly boost property values. Properties near quality transit can see values over 15% higher than those farther away. This isn't just a recent trend; historical data shows that new transit infrastructure has a substantial impact on property values.
Real estate experts predict that the ongoing rollout of Metronet will positively affect real estate values near new stations. Suburbs like Bayswater and Forrestfield are expected to benefit due to their established infrastructure and potential for long-term growth. The METRONET program, with its $3.1 billion investment, is designed to drive economic growth and increase property values in areas with better transport connectivity.
Government reports highlight that this investment is not just about transport but also about boosting local economies. The improved connectivity is expected to make these areas more attractive to both residents and businesses, further driving up property values.
For those considering buying property in Perth, understanding these dynamics can be crucial. Areas with new or improved transport links are likely to see a rise in demand, making them potentially lucrative investments.
Sources: Public Transport Authority Annual Report 2023-24, Value of Properties Near Public Transport, Informed Predictions for the Year Ahead, Western Australia's State Infrastructure Programme 2023
16) Blockchain will make property transactions in Perth cheaper and more transparent
Blockchain is transforming how real estate deals are done in Perth.
Platforms like Propy are leading the charge, showing that blockchain can cut deal closure times by 32.4% and reduce costs by 27.8%. This is a game-changer for anyone looking to buy property, as it means faster and cheaper transactions. Imagine not having to wait weeks for paperwork to clear or paying hefty fees just to finalize a deal.
One of the standout features of blockchain is its ability to create smart contracts and immutable property records. Once a transaction is on the blockchain, it’s there for good, ensuring both transparency and security. PropertyClub, for instance, uses blockchain to verify transaction details, achieving a 21.3% cost reduction while keeping everything transparent. This means you can trust that the information is accurate and tamper-proof.
In Perth, the buzz around blockchain is growing. Over 210 real estate professionals in Western Australia have been trained in this technology, showing a strong willingness to embrace it. This training is part of a collaboration between the Real Estate Institute of Western Australia (REIWA) and TecStack, aimed at integrating blockchain into property transactions. This initiative is setting the stage for a more efficient real estate market in the region.
For potential buyers, this means a more streamlined process with fewer hurdles. Blockchain technology is not just a trend; it’s becoming a vital tool in the real estate industry. With more professionals getting on board, the future of property transactions in Perth looks promising.
Sources: Axis Technical, Wepub, REIWA
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.