The Perth property market is poised for continued growth in 2025, with the Real Estate Institute of Western Australia (REIWA) forecasting a potential 10% increase in property prices according to their latest quarterly update. While this presents significant opportunities, understanding the evolving market conditions is key.

Perth Sales Market: Growth Continues, Sentiment Shifts

• Strong Growth Trajectory: REIWA projects overall property prices to climb by 10% this year. House prices are trending towards this mark, while unit prices could potentially exceed it.
• Record Highs Reached: This forecast builds on a strong start to the year. Perth’s median house price reached a record $770,000 at the end of the March 2025 quarter (a 2.7% increase), while the median unit price also hit a new high of $520,000 (a 4.0% increase).
• Balancing Economic Factors: While underlying demand remains, potential headwinds like US tariffs and global economic uncertainty could influence buyer confidence and employment security concerns. Conversely, anticipated interest rate cuts could boost borrowing power, though their impact might be moderated if economic caution persists. WA’s robust economy provides a degree of insulation.
• Buyer Behaviour Evolving: The market is transitioning from the “frenzied” activity of 2024. REIWA reports buyers are now more discerning, taking more time, and being more cautious with their spending.
• Advice for Sellers: The expectation of instant sales at peak prices seen last year is less likely now. Properties may take longer to sell, and realistic pricing aligned with current local conditions is crucial. Sellers are advised to consult with their agent on optimal pricing and presentation strategies.

Perth Rental Market: Easing Pressure, Varied Conditions

• Rent Prices: The March quarter saw the median house rent rise 3.0% to $690 per week, while the median unit rent held steady at $650.
• Outlook: Further rent increases are anticipated in 2025, but likely at a slower pace than last year, potentially with periods of stability.
• Market Drivers: Pressure on rents is easing due to factors like slowing population growth, tenants adapting by sharing costs or finding alternatives, and an increase in rental supply, particularly from newly built investment properties in outer suburbs. This has led to an increase in the overall vacancy rate.
• Suburb Variations: It’s not uniform across Perth. High-demand areas (near CBD, lifestyle attractions) still see strong competition and low vacancy rates. In contrast, outer suburbs with significant new housing supply may experience higher vacancies and require landlords to be more competitive with pricing.

Regional WA Highlights

• Strong Growth Forecasts: Significant house price growth (15-20%) is predicted for Albany, Busselton, and Geraldton, driven by factors like migration, affordability, and established home demand.
• Moderate Growth: Bunbury and Karratha are expected to see around 10% growth.
• Varied Outlooks: Lower growth is predicted for Kalgoorlie, Broome, and Esperance, with potential price declines in Port Hedland.
• Regional Rentals: Rent growth is also expected to slow across regional WA, with most centres forecast for up to 5% growth. Port Hedland may see rent decreases.

Navigating the 2025 Market

While the headline forecast points to continued strength, the Perth and WA markets are becoming more nuanced. Buyer behaviour has shifted, and conditions vary significantly between suburbs and regions for both sales and rentals.

Whether you’re looking to buy, sell, invest, or find your next rental, understanding these local dynamics is essential. Our team at Holdsworth Real Estate has the on-the-ground expertise to guide you through the current market. Contact us today for personalised advice tailored to your property goals.