Buying property in Perth: is it worth it?

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Perth. If you'd like to learn more about us, you can check our presentation page.

How have property prices in Perth moved over the past five years, and what are the short-term forecasts for the next 12 months?

Perth property prices have delivered exceptional growth over the past five years, surging by approximately 25.9% from the pandemic trough to mid-2022 and continuing to climb steadily each year since.

As of September 2025, Perth's median dwelling price reached $813,810, representing an 8.6% increase over the previous 12 months. Houses specifically recorded 8.1% annual growth, while units performed even stronger with 13.1% annual price increases.

The Perth property market now ranks among Australia's strongest performers, having achieved all-time highs in 2025. This surge contrasts sharply with the subdued growth experienced from 2014-2021, when Perth's market was in recovery mode following the mining boom downturn.

Short-term forecasts for the next 12 months show continued optimism across major financial institutions and real estate organizations. Major banks including NAB, Westpac, and ANZ predict property price growth of 4-7% over the coming year. However, more optimistic forecasts from REIWA and independent analysts suggest growth could reach up to 10%, particularly for houses.

This growth trajectory positions Perth as a standout market in the Australian property landscape, driven by strong population growth, mining sector recovery, and relative affordability compared to eastern capitals.

What does the medium-term (3–5 years) outlook suggest for capital growth across different parts of Perth?

Perth's medium-term outlook remains highly favorable, with the city projected to outperform other Australian capitals over the next 3-5 years.

Independent property analysts forecast capital growth of 9-11% annually over the next few years, though this may moderate from current boom levels as more supply enters the market and demand patterns stabilize. The key driver for sustained growth will be Perth's ability to maintain high migration rates and economic expansion.

Different Perth regions are expected to perform variably during this period. Inner and coastal suburbs with tight supply, established infrastructure, and lifestyle appeal are likely to deliver the strongest medium-term capital growth. These areas benefit from limited land availability and consistent demand from both owner-occupiers and investors.

Outer metropolitan areas are projected to experience steady but more moderate growth, typically tracking 1-2 percentage points below inner suburb performance. However, areas benefiting from new infrastructure developments or urban renewal projects may outperform these averages.

It's something we develop in our Australia property pack.

What are the long-term trends (10+ years) in Perth's property market compared to other major Australian cities?

Perth's long-term property performance over the past decade tells a story of cyclical recovery and recent market leadership.

From 2014-2021, Perth experienced subdued growth during its post-mining boom adjustment period, with house prices growing at below-average rates compared to Sydney and Melbourne. However, the dramatic rebound from 2021 onwards has transformed Perth into Australia's leading growth market.

Over the complete 10-year period, Perth house prices achieved an average annual growth rate of 4.3%, with the majority of this growth occurring in the past three years. This cyclical pattern reflects Perth's resource-driven economy and its sensitivity to commodity cycles and migration patterns.

Compared to other major Australian cities, Perth's long-term performance now positions it as a compelling value proposition. While Sydney and Melbourne experienced earlier growth cycles, Perth's recent surge has created a new growth leadership phase that analysts expect to continue.

The long-term trend indicates Perth's market follows distinct cycles tied to economic drivers including mining activity, population growth, and relative affordability. This cyclical nature has created opportunities for investors who understand timing and market fundamentals.

How do property prices differ between central Perth, coastal suburbs, and outer metropolitan areas right now?

Which property types—apartments, townhouses, or detached houses—are showing the strongest demand and value growth?

Units and apartments are currently delivering the strongest value growth in Perth's property market, with annual price increases of 13.1% compared to 8.1% for detached houses as of September 2025.

This shift toward unit performance reflects changing buyer behavior as house prices reach premium levels. Buyers seeking affordability and investors targeting strong yields are increasingly drawn to apartment and townhouse segments, creating heightened demand and corresponding price growth.

Detached houses continue to experience robust demand with solid 8.1% annual growth, but supply constraints and rising prices have shifted some market interest toward more affordable property types. Houses remain the preferred choice for owner-occupiers seeking lifestyle and space, particularly in family-oriented suburbs.

Townhouses represent a middle ground, offering the benefits of individual ownership with lower maintenance requirements than detached houses. They're experiencing steady demand from both investors and owner-occupiers, particularly in well-located developments near amenities and transport.

The strongest demand drivers for units include their relative affordability, lower maintenance requirements, and typically superior rental yields. Well-located apartment complexes near the CBD, universities, and transport hubs are seeing particularly strong interest from both local and interstate investors.

What are the current rental yields across different suburbs and property types in Perth?

Perth offers some of Australia's highest rental yields, with median figures commonly ranging between 5-6% across both houses and units, significantly outperforming most other Australian capital cities.

Inner and lifestyle suburbs deliver strong rental yields while also offering capital growth potential. Well-located apartment complexes typically achieve the higher end of the yield range, particularly those situated near universities, the CBD, or major employment centers.

Coastal and premium suburbs may offer slightly lower yields (4-5%) but compensate with stronger capital growth potential and premium tenant quality. These areas attract professional tenants willing to pay premium rents for lifestyle and location benefits.

Outer metropolitan areas can deliver yields at the higher end of the range (5-6%+) due to lower purchase prices, but may experience more variable capital growth and tenant turnover. These areas often attract families and essential workers seeking affordability.

The strength of Perth's rental market reflects severe housing shortages, strong population growth, and limited supply, creating exceptional conditions for property investors seeking income returns.

How does rental demand vary between short-term stays, long-term rentals, and student or worker accommodation?

Long-term rental demand in Perth is exceptionally strong, driven by massive population growth and critical housing shortages affecting all market segments.

The long-term rental market experiences enormous demand, particularly for family-suitable dwellings and well-located properties. Vacancy rates remain at historically low levels, giving landlords significant leverage in rent setting and tenant selection. This segment benefits from Perth's ongoing population growth and limited housing supply.

Short-term accommodation demand varies significantly by location, with highest demand concentrated in central Perth and tourism-related coastal suburbs. Areas near major attractions, beaches, and the CBD command premium short-term rates, though this market can be more volatile based on economic conditions and travel patterns.

Student and worker accommodation shows particularly strong demand around university campuses and major employment centers. Perth's growing international student population and FIFO (fly-in-fly-out) mining workforce create consistent demand for flexible accommodation options.

Healthcare workers, university students, and essential services employees represent key tenant demographics with strong, stable rental demand. The proximity to hospitals, universities, and CBD employment hubs significantly influences rental demand patterns across different Perth suburbs.

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What is the average budget needed today to buy an entry-level home versus an investment property in Perth?

Entry-level homes in Perth typically require a minimum budget of $600,000-$700,000 for basic houses in outer or less-prestigious metropolitan suburbs.

For first-home buyers seeking detached houses, budgets of $650,000-$750,000 provide access to established suburbs with reasonable amenities and transport links. These properties typically offer 3-bedroom configurations suitable for growing families but may require renovation or updates.

Investment properties offer more diverse price points depending on strategy and location. Units and townhouses in emerging or in-demand locations start from approximately $450,000-$700,000, providing accessible entry points for property investors seeking strong rental yields.

Established dwellings with superior yield and growth prospects typically require budgets of $700,000 or more. These properties often feature better locations, higher-quality construction, and stronger tenant demand, justifying their premium pricing.

Premium investment opportunities in inner suburbs or coastal areas may require $800,000-$1,200,000 budgets but offer combination benefits of strong yields, capital growth potential, and superior tenant profiles.

How do transaction costs, taxes, and ongoing maintenance expenses compare across property types in Perth?

Transaction costs in Perth follow standard Australian patterns, with stamp duty representing the largest initial expense based on Western Australian state rates.

Stamp duty calculations vary significantly by property price, with first-home buyers potentially eligible for concessions or exemptions on properties under certain thresholds. Legal fees, conveyancing, building inspections, and other professional services typically cost $2,000-$5,000 regardless of property type.

Ongoing expenses vary substantially between property types. Detached houses generally incur higher maintenance costs due to larger land areas, more complex building systems, and greater owner responsibility for repairs and upkeep. Annual maintenance budgets of $3,000-$8,000 are typical for established houses.

Units and townhouses offer lower maintenance obligations, with body corporate fees covering common area maintenance and building insurance. These fees typically range from $2,000-$6,000 annually depending on complex amenities and building age, but reduce individual owner maintenance responsibilities.

Investment properties face additional ongoing costs including land tax (on total land holdings above threshold amounts), property management fees (6-8% of rental income), and higher insurance premiums. Council rates vary by local government area and property valuation.

Which areas of Perth are considered undervalued or emerging hotspots for buyers and investors?

Several Perth areas present compelling opportunities for buyers and investors seeking undervalued properties with strong growth potential.

Outer metropolitan areas benefiting from new infrastructure developments represent key emerging hotspots. Suburbs receiving new transport links, shopping centers, or major employment hubs often experience accelerated capital growth as amenity improvements attract residents and investors.

Affordable coastal suburbs with development potential offer particularly attractive investment propositions. These areas benefit from lifestyle appeal while maintaining relatively accessible price points compared to established premium coastal locations.

Inner-west and inner-north suburbs experiencing urban renewal are attracting significant investor interest. High rental demand, low vacancy rates, and proximity to employment centers make these areas particularly suitable for investors seeking strong yields with capital growth potential.

It's something we develop in our Australia property pack.

Lifestyle precincts undergoing revitalization often present opportunities for buyers willing to invest in areas before widespread market recognition. These locations typically offer superior value compared to established premium suburbs while providing similar lifestyle benefits.

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.

How resilient is Perth's property market to economic shocks, interest rate changes, and population growth patterns?

Perth's property market demonstrates strong resilience compared to eastern Australian capitals, benefiting from multiple protective factors against economic volatility.

Interest rate changes have shown milder impacts on Perth property prices compared to Sydney or Melbourne markets. Perth's relative affordability, strong rental yields, and resource-driven economy provide buffers against interest rate sensitivity that affects more expensive markets.

The resource sector's strength provides economic stability and employment security that supports property demand even during broader economic uncertainty. Mining activity, infrastructure investment, and export-driven economic activity create income streams less dependent on domestic economic cycles.

Population growth patterns strongly favor Perth's market resilience. Ongoing interstate and international migration, combined with natural population increase, maintains consistent housing demand that supports both property prices and rental markets.

Low housing supply relative to demand creates fundamental market strength that helps Perth resist price declines during economic shocks. This supply-demand imbalance provides underlying support for property values and rental income streams.

If you were to buy in Perth today, where should you focus, with what budget, and which property type, depending on whether your goal is to live in it, rent it out, or resell it later?

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.

Sources

1. OpenAgent Perth Property Market Analysis
2. Here Property Perth Market Predictions 2025
3. REIWA Perth Property Price Forecasts
4. Australian Property Update Perth Growth Analysis
5. Enaybl Perth Property Market Forecast
6. Property Update Australia 10 Year Price Analysis
7. RealEstate.com.au Perth Market Data
8. RealEstate.com.au Five Year Price Analysis