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 is happening in Perth’s real estate market? Are prices on the rise or decline? Is Perth still a prime location for property investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Perth and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Perth real estate market daily. That’s why we’ve crafted this article: to deliver clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we’ve missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
How this content was created 🔎📝
1) Mid-range property prices will stay stable with no major fluctuations expected
The market for mid-range properties in Perth is expected to stay steady with no significant price fluctuations.
One reason for this stability is Perth's steady employment rates. As of late 2024, Australia's unemployment rate, including Perth, was around 4.0%, indicating a stable job market. When people have secure jobs, they're more likely to buy homes, which helps keep the housing market steady.
Western Australia's population is also growing consistently. In 2023, the state saw a growth rate of 3.1%, making it the fastest-growing state in Australia. This steady growth means there's a constant demand for housing, which helps prevent sudden changes in property prices.
Additionally, the Reserve Bank of Australia has kept interest rates stable since November 2023. This stability supports the housing market by making it easier for people to plan their finances when buying homes.
Historical data shows that mid-range properties have experienced minimal price volatility. This trend is expected to continue in Perth, as similar economic conditions are present.
The housing market in Perth has a balanced supply and demand, indicated by a tight vacancy rate. This balance is crucial for maintaining stable property prices, as it prevents oversupply or undersupply from causing price swings.
Sources: UWA News, Trading Economics, Property Update, Australian Bureau of Statistics
2) Perth’s property prices will stabilize after rapid growth, creating more opportunities for buyers
Perth's property market has been booming, but now it's showing signs of stabilization.
Experts like Westpac foresee a shift, predicting that annual price growth will drop from 10% in 2023 to 4% in 2025. KPMG Australia echoes this, expecting house price increases to fall from 10.2% in December 2024 to 5.2% by December 2025.
Real estate insiders are noticing changes too. The REIWA President points out that rent prices are leveling off, rental listings are up, and properties are taking a bit longer to rent. This hints at a more balanced market, which is key for stabilization.
While the number of properties for sale in Perth is still low, new listings have jumped by 12.7%. This means new stock is being snapped up quickly, but the overall inventory is slowly rising, helping to create a more stable market.
Economic forecasts back this up. NAB and Westpac both see growth rates slowing, with NAB predicting an 8.3% increase in 2025, down from 23.1% in 2024. This pattern of stabilization often follows periods of rapid growth.
Sources: Here Property, Momentum Wealth, Sherlock HG, OpenAgent, Domain
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.
3) Inner-city rental yields may dip slightly as supply catches up with demand
In inner-city Perth, rental market dynamics are shifting.
Recently, vacancy rates have increased, with more rental properties available. For instance, in October 2024, the vacancy rate was 0.6%, up from 0.4% the previous year. This uptick means renters have more options now.
What's driving this change? New apartment complexes are popping up all over the city. The Real Estate Institute of Western Australia (REIWA) notes that many of these are investor-owned, adding to the rental supply.
Government reports back this up, showing that housing supply is catching up with demand. The Australian Housing Outlook highlights that new builds and a recovery in population flows are balancing the market.
With these developments, the rental market is stabilizing. Media outlets often mention that as vacancy rates rise, the market is finding its equilibrium. This balance is expected to cause a slight dip in rental yields.
Sources: REIWA, QBE Housing Outlook, Property Update
4) Rental yields in high-demand coastal areas will stay strong due to limited supply
Rental yields in high-demand coastal areas are expected to remain strong due to limited supply and increasing demand.
In 2023 and 2024, coastal suburbs like Mindarie and Brookdale have shown consistently high rental yields. Mindarie saw a 19.7% rent increase, while Brookdale experienced a 23.9% rise, resulting in rental yields of 4.75% and 6.0% respectively. This trend highlights the strong demand for rentals in these areas.
Reports from these years also point to limited new housing developments in high-demand coastal regions. This imbalance between supply and demand is expected to persist, driving up property prices and rental yields. Perth's coastal suburbs, such as Baldivis and Ellenbrook, are experiencing rapid population growth, further fueling demand.
People are drawn to coastal living for its lifestyle appeal, which surveys show is a strong tenant preference. This desirability boosts rental yields in these areas. In December 2023, Perth's rental vacancy rate hit a 42-year low of 0.6%, underscoring the strong demand and limited supply, especially in coastal regions.
Sources: Satterley, Halyn Property, UDIA WA
6) Rental yields will rise in suburban areas with new amenities as they become more desirable
Suburban areas with new amenities are becoming increasingly attractive to renters, leading to a rise in rental yields.
In 2023, suburbs like Medina, Armadale, and Brookdale in Perth stood out with rental yields for houses reaching 6.3%. Bayswater was even more impressive, with units achieving a remarkable 9.6% yield. This shows how new amenities can boost rental desirability.
Property values in these suburbs have also climbed, with the median house price in Perth rising by over 20% in the past year. Suburbs like Shelley, Floreat, and West Perth are seeing high annual rental growth rates, thanks to these new amenities.
Demographic surveys reveal that tenants love living near amenities like good transport links and schools. Professional couples, often priced out of inner-city markets, are now eyeing these amenity-rich suburbs for the lifestyle they offer.
These areas are not just attracting renters but also investors, as the strong growth cycle continues. The convenience and lifestyle offered by these suburbs make them a hot choice.
As more amenities pop up, expect these suburban areas to become even more desirable, pushing rental yields higher and drawing in more interest from both renters and investors.
Sources: REIWA, API Magazine, Smart Property Investment
7) New stamp duty rules will make the market more appealing for first-time buyers
In 2023 and 2024, the Western Australian government made big changes to stamp duty rules to help first-time home buyers.
Now, if you're buying your first home, you can get a place up to $450,000 without paying any stamp duty. This change means you save a lot of money right from the start, making it easier to step into the property market.
For homes priced between $450,000 and $600,000, there's a special concessional rate that cuts costs even more. This is expected to help around 5,000 first-time buyers each year, making homeownership more within reach.
Real estate experts are saying these lower costs could lead to a rush of property purchases by first-time buyers eager to take advantage of the current rates before they might change in 2025.
Media and experts are buzzing about these new rules, pointing out the big savings for eligible buyers. It's all part of a larger $1.1 billion plan by the government to make housing more affordable and give first-time buyers a break.
With these changes, there's been a noticeable increase in inquiries and consultations with real estate agents, as more first-time buyers look into their options.
Sources: REIWA, Fox Mortgages, Buy Association Group, WA Government
8) New zoning laws will promote higher-density developments in specific suburbs
New zoning laws are set to encourage higher-density developments in certain suburbs.
These changes are part of the National Planning Reform Blueprint for 2024, which aims to boost density to keep up with population growth. The plan identifies more land for future development, balancing both economic and environmental needs. This means you might see more apartment buildings popping up in areas that were once dominated by single-family homes.
According to the Australian Bureau of Statistics, there's been a noticeable shift towards multi-unit approvals, which jumped by 14.3% in May 2024. This trend is especially evident in areas where such approvals were previously rare. The government is pushing for higher-density living and infill development, despite past policies that favored urban sprawl.
Looking at the Towards Perth and Peel@3.5million initiative, we see successful strategies for increasing residential density around key spots like activity centers and public transport corridors. This means new homes are being integrated into existing urban areas, focusing on strategic infill development. Real estate market reports emphasize the need for these higher-density developments, as Perth and Peel are projected to need an additional 800,000 new homes by 2050.
These new zoning laws are not just about cramming more people into smaller spaces. They aim to create vibrant communities with easy access to amenities and public transport. This approach is designed to make urban living more appealing and sustainable, reducing the reliance on cars and promoting a more connected lifestyle.
Sources: Treasury.gov.au, Limnios.com.au, WA.gov.au
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
10) Demand for single-level homes in accessible areas will rise due to an aging population
The aging population in Perth is on the rise, with projections showing that by 2061, 19.5% of Western Australia's population will be over 65.
In 2023, there was a noticeable uptick in retirees looking to downsize, with 190,000 potential downsizers identified, marking a 14% increase since 2021. This trend often means a preference for single-level homes, which are easier for older adults to manage.
Older adults are keen to live near healthcare facilities, a fact supported by urban planning data. This has spurred the creation of age-friendly communities that provide accessible healthcare services and infrastructure.
As more people age, the demand for homes with accessibility features is climbing. Real estate market reports show that single-level homes with features like ramps and wider doorways are highly sought after by older demographics.
These homes are not just about convenience; they offer peace of mind. Living in a place that’s easy to navigate and close to essential services is a top priority for many seniors.
For those considering a move, understanding these trends can be crucial. The market is clearly shifting towards properties that cater to the needs of an aging population, making it a smart move to consider these factors when buying.
Sources: UDIA WA, MoneySmart, Perth County, Business Insider
11) Perth’s luxury property market will slightly decline as buyers grow more price-sensitive
In Perth, luxury property buyers are becoming more price-sensitive due to rising interest rates.
With interest rates climbing, mortgages are getting pricier, making it tougher for people to afford high-end homes. This trend is likely to persist into 2025, as rates might stabilize or even tick up a bit more, squeezing budgets further.
Perth's high cost of living is another factor, tightening household budgets and making buyers cautious. Many are now eyeing more affordable housing options, as consumer surveys have shown over the past few years.
In suburbs like Subiaco and North Coogee, high-end property sales have slowed, with noticeable drops in median prices. For instance, North Coogee saw a 19.2% decrease, or $211,000, bringing the median house price down to $889,000.
These price reductions highlight a shift in buyer focus. In Subiaco, the median house price fell by 16.9%, or $218,000, to $1.07 million, showing that sellers are adjusting to meet the demands of more price-conscious buyers.
As buyers become more cautious, luxury property markets are feeling the pinch, with sellers needing to adapt to the changing landscape.
Make a profitable investment in Perth
Better information leads to better decisions. Save time and money. Download our guide.
14) Scarborough's coastal suburb will draw more investors with its ongoing beachfront redevelopment
The coastal suburb of Scarborough is turning heads among investors due to its ongoing beachfront redevelopment.
In 2024, the median sale price for units in Scarborough hit $540,000, with some properties soaring to $1.4 million. This jump in property values signals a prime opportunity for those eyeing growth.
Scarborough isn't just about rising property prices; it also boasts one of the strongest rental yields in the country. In 2023, the median weekly rent was $500, translating to an annual rental yield of around 6.88%. This impressive yield is likely to stay steady, thanks to limited land for new housing and ongoing demand.
The Scarborough Beach Road Activity Corridor Framework, rolled out in 2024, is set to boost public transport, cycling, and pedestrian facilities. These enhancements make the area more livable and attractive, drawing in more foot traffic and tourists.
Such infrastructure improvements are known to boost local economies and property values, making Scarborough even more enticing for investors.
Sources: Domain, REIWA, WA Government
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.
15) Northern suburbs like Alkimos will grow with planned urban expansion
Alkimos is gearing up for major growth thanks to planned urban expansion.
In recent years, the Perth - North West region has been on a roll, with population numbers expected to soar by 2046. Alkimos, nestled in the City of Wanneroo, is right in the thick of this boom. It's been a hotspot for new homes, and this trend shows no signs of slowing down.
The government is pulling out all the stops with big infrastructure plans. One standout project is a 33.5-kilometer underground pipeline stretching from Alkimos to Wanneroo. This is part of a massive $2.8 billion effort to secure drinking water for the future, which is set to create over 1,500 local jobs and give the economy a nice boost.
On top of that, new housing projects are in the works. The Alkimos project, led by Milestone Projects, aims to house 50,000 people and create 13,500 jobs. They're not just building homes; they're upgrading infrastructure and working with transport authorities to improve roads and railways. This means better connectivity and accessibility, making Alkimos a prime spot for living and investing.
These developments are more than just construction; they're about making Alkimos a vibrant community. With enhanced transport links and essential services, the area is becoming increasingly appealing to potential buyers and investors.
As these projects unfold, Alkimos is set to become a key player in the region's growth story. The combination of strategic planning and investment is transforming it into a thriving hub.
Sources: WA Government, Forecast Review, Milestone Projects
16) Victoria Park will draw more investors for its CBD proximity and vibrant community atmosphere
Victoria Park is quickly becoming a favorite spot for investors.
In the past year, the area has experienced a notable increase in property values, with a median house price jump of 11%. This kind of growth is a clear signal to investors that Victoria Park is on the upswing, offering promising returns. The area is buzzing with a demographic shift, attracting a growing number of young professionals. This influx not only boosts the rental market but also adds to the vibrant community vibe, making it a magnet for both residents and investors.
One of the biggest draws is its proximity to the CBD. Being close to the city means easy access to work and amenities, a huge plus for potential residents. The suburb's excellent public transport options further enhance its appeal, ensuring that it remains well-connected to the rest of the city. New developments and infrastructure projects are also on the rise, like the exciting announcement of a seven-kilometer linear park. This kind of investment in local amenities not only improves the quality of life for residents but also makes the area more attractive to investors looking for growth potential.
Sources: WA Government, Savings.com.au
17) Fremantle’s property demand will increase as it emerges as a hub for creative industries
Fremantle is quickly becoming a hotspot for creative industries, which is set to boost property demand.
In recent years, Fremantle's creative economy has been a major player, adding over 2,310 jobs and $181.1 million to the local economy. This growth is not just numbers; it's visible in the vibrant businesses popping up, like PaperBird and Kidogo Arthouse. These places are more than just businesses; they are part of a thriving entrepreneurial spirit that makes Fremantle unique.
One of the coolest things happening is the transformation of heritage buildings into co-working spaces by initiatives like Spacemarket. This is not just about preserving history; it's about creating spaces where creative minds can thrive. As more creative professionals and businesses move in, the demand for residential and commercial properties naturally goes up.
Government support is a big deal here, too. With programs like the Western Australian Regional Film Fund and the City of Fremantle's Creative Strategy 2024-34, there's a real focus on community engagement and infrastructure. These efforts make Fremantle a magnet for creative professionals, drawing in talent and ideas from all over.
Surveys and community engagements show that people are genuinely interested in what Fremantle has to offer. It's not just about the numbers; it's about the vibe and the opportunities that come with being in a place that's buzzing with creativity.
Sources: DLGSC, City of Fremantle
Get fresh and reliable information about the market in Perth
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
18) Virtual reality tours will become more popular, enabling remote property viewings for buyers
Virtual reality tours are becoming a staple in real estate, especially since 2023 and 2024.
In Perth, the real estate scene is buzzing with activity, hitting a three-year high of over 5,500 new listings in October 2024. This boom means more people are looking for homes, and virtual tours are stepping up to meet this demand. Homes with these tours get 87% more views, and buyers linger 5-10 times longer, showing they love this tech.
VR technology is now more accessible and affordable, offering high-quality 3D tours with 360-degree views. This progress has nudged real estate agencies to invest in VR gear, making virtual tours a regular feature. The pandemic also pushed this trend, as people wanted to avoid in-person visits.
Virtual reality is not just a fancy add-on; it's becoming essential. Buyers can explore properties from their couch, making it easier to decide without stepping outside. This convenience is a game-changer, especially for those looking to buy in different cities or countries.
As VR tech keeps improving, expect even more interactive features. Imagine walking through a house, opening doors, and checking out the view from the balcony—all from your living room. This is where real estate is headed, and it's exciting.
Sources: GlobeNewswire, The Luxury Playbook, Real Estate Business
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.