Welcome to your latest Perth property market update! As we analyse the REIWA data for March 2025, a clear picture emerges: the market is transitioning. While growth continues, conditions are shifting, offering more choice for buyers and tenants compared to the peak frenzy of early 2024. Let’s dive into the details.
More Choice Emerges: Listings on the Rise
One of the most significant trends is the increase in properties available for sale.
- Active Listings: At the end of March, there were 5,082 properties listed for sale on reiwa.com. That’s 4.8% more than February and a substantial 41.5% higher than March 2024.
Why the increase? REIWA President Suzanne Brown points to two key factors:
- Slowing Population Growth: While still positive, the rate of population growth has eased from its peak (dropping from 3.4% year-to-Sep 2023 to 2.5% year-to-Sep 2024). This has slightly tempered the extreme demand levels seen previously.
- Consistent New Listings: Following a surge late last year, properties have continued to come onto the market steadily, boosting overall stock levels.
This combination means buyers now have more options and are taking a bit more time with their decisions, leading to a more balanced market dynamic.
Sales Prices: Growth Continues, But Pace Moderates
Despite the increased choice, property values continued their upward trajectory in March, albeit potentially at a more sustainable pace.
- Median House Price: Rose 1.2% in March to $766,500. This is 20.7% higher than a year ago.
- Median Unit Price: Also increased by 1.2% over the month to $516,000, marking a 20.0% year-on-year gain.
Ms. Brown notes that while the rate of price growth is slowing, relatively strong underlying demand continues to support prices. However, she stresses that conditions vary across Perth, making local knowledge crucial for sellers when setting prices and preparing their homes for sale.
Top Suburbs for House Price Growth (March 2025):
- Fremantle: +3.5% ($1,345,000)
- Yokine: +3.3% ($1,017,000)
- Kensington: +2.9% ($1,325,000)
- Hillarys: +2.5% ($1,396,000)
- Mandurah: +2.4% ($545,000) (Suburbs like Kardinya, Ocean Reef, Aveley, Bicton & Hamilton Hill also saw strong growth)
Time on Market: Slightly Longer Selling Times
Reflecting the shift away from peak frenzy, properties took slightly longer to sell compared to last year:
- Houses: Median 13 days (Stable vs Feb, 4 days slower than March 2024)
- Units: Median 13 days (1 day slower vs Feb, 2 days slower than March 2024)
Fastest Selling Suburbs (Houses, March): Willagee & Hammond Park (6 days); Craigie, Orelia, Palmyra & Parmelia (7 days).
Perth Rental Market Update
The rental market is also showing signs of change, with more properties becoming available.
- Rental Listings: 2,126 properties were available at March end, up 5.4% from February and 14.9% higher than March 2024.
- Median Rents:
- Dwellings: $680/week (+0.7% month-on-month, +4.8% year-on-year)
- Houses: $690/week (+1.5% month-on-month, +6.2% year-on-year)
- Units: $650/week (Stable month-on-month, +8.3% year-on-year)
Slowing Rent Growth:
The key takeaway here, as highlighted by Ms. Brown, is the significant slowdown in the annual rate of rent growth. While rents edged up slightly month-on-month, the yearly increases are much lower than previously seen. This trend is expected to continue as population growth moderates. Local variations remain important, with some suburbs still seeing strong competition while others stabilise.
Top Suburbs for Rent Growth (Dwellings, March 2025):
- Spearwood: +6.2% ($690)
- Tuart Hill: +4.9% ($640)
- Victoria Park: +4.8% ($650)
- Mosman Park: +4.6% ($680)
- Wembley: +4.5% ($575)
Leasing Times: Remained stable at a median of 15 days, unchanged from February and March 2024. Fastest leasing occurred in suburbs like Osborne Park, Wellard (8 days); Innaloo, Hamilton Hill (9 days).
What Does This Mean For You?
The Perth market is evolving. For buyers, there’s more choice and slightly less pressure than a year ago, allowing for more considered decisions. For sellers, while prices are still growing, expert presentation and strategic pricing aligned with local conditions are key to achieving a successful outcome.
For landlords, while annual rent growth has slowed, rents are still higher than last year; understanding local demand is vital for pricing. For tenants, increased stock offers slightly more options, though finding the right property still requires prompt action in desirable areas.
Navigate the Changing Market with Confidence
Whether you’re looking to buy, sell, invest, or rent, understanding these nuances is crucial. Market conditions vary significantly from suburb to suburb.
Get expert advice tailored to your specific needs and local area. Contact Holdsworth Real Estate today for a confidential discussion!