The latest quarterly property market update from REIWA has just been released, and it contains some game-changing forecasts for Perth. If you’re a homeowner, buyer, or investor, this is crucial information. The headline news? For the first time in a long while, units are predicted to outperform houses for price growth through the rest of 2025.

As your local property experts, we’ve dived into the data to bring you the insights that matter. Here’s our breakdown of the trends shaping our market and what they mean for you.

The Big Story: Why All Eyes Are on Units, Townhouses, and Villas

While the Perth market remains strong across the board, a significant shift is underway. REIWA is forecasting the median house price to grow by around 10% over the year, while the median unit price is on track for an impressive 15% growth.

What’s driving this change? Affordability. After a period of rapid growth, Perth’s median house sale price hit a new record of $786,000 in the June quarter. This has naturally pushed many buyers to explore the incredible value offered by the unit market, which saw its median rise 2.9% in the quarter to a new record of $540,000.

Interestingly, the data shows a clear preference for specific types of units.

  • Top Performers: Villas and traditional home units are seeing the strongest demand and price growth.
  • Strong Demand: Townhouses remain highly sought-after.

The trend suggests that while buyers are seeking affordability, they still highly value features like a private courtyard and their own garage—hallmarks of medium-density living.

Economic Factors: What Could Influence the Market?

While the forecast is positive, REIWA notes two key factors that could impact the market in the coming months:

  1. Global Uncertainty: Economic concerns, such as the ongoing “Trump tariffs,” can affect consumer confidence and employment security, which may cause some buyers and sellers to pause.
  2. Interest Rates: On the other hand, any further interest rate cuts this year would increase borrowing capacity. This could fuel another wave of buyer activity and place upward pressure on prices, particularly for more affordable properties like units.

A Look at the Rental Market: A Shift in Momentum

For landlords and tenants, the market is also evolving. The key takeaway is that the rapid pace of rent price growth we’ve seen over the past few years is beginning to moderate.

  • The median house rent saw a slight quarterly dip of 2.2% to $680 per week. Annually, it’s up 4.6%.
  • The median unit rent increased by 1.5% over the quarter to $660 per week. Annually, it’s up 10%.

This easing pressure is a result of more rental supply becoming available and a slight softening in overall demand. However, conditions vary significantly. Our team is seeing intense demand for modern, well-maintained homes close to the city, while older properties in outer suburbs may require more competitive pricing to attract a quality tenant.

Spotlight on Regional WA: Opportunities Beyond Perth

The positive growth story extends across the state, with strong forecasts for most regional centres.

  • Top Performers (Forecast 20% to 25% growth): Albany and Geraldton.
  • Strong Growth (Forecast 15% growth): Bunbury, Busselton, and Karratha.
  • Modest Growth (Forecast 2% to 5% growth): Broome, Esperance, and Kalgoorlie.
  • Forecast Decline: Port Hedland is the one centre expected to see a price decrease in 2025.

The Golden Rule: All Real Estate is Local

This report powerfully illustrates that you cannot paint the entire market with one brush. While Perth’s overall median house price grew 16.4% over the past year, the top 10 suburbs all recorded growth of over 28%. Similarly, some suburbs saw their median price decline.

What does this mean for you?

Don’t rely on city-wide medians to make a decision. To understand what your property is truly worth, what you can afford to buy, or where the best investment opportunities lie, you need tailored, hyper-local advice.

Our team of dedicated professionals lives and breathes local real estate. We have the on-the-ground knowledge to help you navigate these trends and make your next move your best one yet.

Contact us today for a free, comprehensive property appraisal and a discussion about your specific goals.