As we head into the second half of 2025, the Perth property market is showing no signs of slowing down. With property prices continuing to rise, homebuyers, investors, and renters alike are eager to understand where the market is headed and what they can expect in the year ahead.
In this post, we’ll break down the key factors driving Perth’s property prices, offer insights into the suburbs to watch in 2025, and provide you with expert predictions to help you make informed decisions .
What’s Happening with Perth Property Prices in 2025?
Perth’s property market has been on a steady growth trajectory in recent years. According to the latest data from the Real Estate Institute of Western Australia (REIWA), the median house price in Perth stood at $778,000 as of early 2025, reflecting a steady increase compared to previous years.
This price growth comes amid rising demand driven by a strong economy, low supply of housing, and ongoing interest from both local and interstate buyers. Additionally, Perth remains one of the more affordable capital cities in Australia, attracting buyers and investors from across the country, particularly from cities like Sydney and Melbourne where housing prices are significantly higher.
Could Perth Property Prices Peak Soon?
While we aren’t at the peak yet, many experts believe that Perth’s property market will eventually reach a point of stabilization as prices climb further. If the interest rate environment tightens, or if there is a significant increase in supply (either through new developments or more listings), it could signal the peak.
However, for now, Perth’s market is still in growth mode. The combination of low supply, increasing demand, and relatively affordable prices (compared to other major cities) means that 2025 could be another strong year for property prices.
What Does This Mean for Buyers?
- It’s Still a Good Time to Buy: If you’re a homebuyer or investor, it may be a good time to enter the market before prices rise further. While we’re not at the peak yet, experts predict that prices will continue to increase, so securing a home now could mean avoiding paying even higher prices in the near future.
- Expect Some Price Volatility: Like any market, property prices may experience fluctuations. Even if we’re not at the peak, there’s always a chance of short-term corrections, especially if external factors (like interest rates or the economy) shift unexpectedly.
- Location Is Key: Suburbs with limited housing stock or high demand will see larger price increases. So, focusing on emerging areas with long-term potential is essential for buyers looking to maximize their investment.
Factors Driving the Growth of Perth’s Property Market
To understand where Perth’s property prices are headed, it’s important to consider the factors influencing the market.
1. Economic Growth and Stability
Perth’s economy has shown strong resilience, with the mining sector continuing to drive job growth and investment. The demand for skilled workers and their families has contributed to increased housing demand. Additionally, the state’s low unemployment rate and positive business outlook further bolster confidence in Perth’s property market.
2. Low Supply and High Demand
A key factor behind the rising property prices in Perth is the imbalance between supply and demand. The city has seen a significant undersupply of new homes, particularly in desirable inner suburbs and high-growth areas. This scarcity is leading to more competition among buyers, which inevitably drives up prices. In 2025, demand is expected to remain high, especially for established homes in popular suburbs.
3. Interest Rates
Although interest rates have seen some upward movement in recent years, the Reserve Bank of Australia’s monetary policy remains relatively accommodating. With the cash rate still lower than historic averages, borrowing costs continue to be attractive for homebuyers and investors. While the RBA may adjust rates throughout 2025, the general outlook remains positive, which will likely support housing demand.
Emerging Suburbs to Watch in 2025
As Perth’s property market evolves, certain suburbs are gaining popularity and could become hotspots for buyers in 2025.
The ongoing price growth has seen a change in buyer psychology, with the value drivers shifting and redefining “premium” in the context of traditionally blue chip suburbs and block sizes. As the colloquial “Great Australian Dream” fades into near on obscurity as it becomes out of reach for the average Australian, we are seeing buyers look at other areas and solutions that will maximise affordability and allow them to achieve lifestyle factors and consider long-term value and convenience.
Ongoing infrastructure upgrades across Perth have also changed the game in terms of increasing lifestyle opportunities and convenience in some areas that were previously considered more outer metro. In saying that, although arterial roads and access have continued to improve, so to have the amenities of newer areas with schools, shopping centres and other lifestyle amenities now well established.
Here are some areas to keep an eye on:
1. Baldivis
Located south of Perth, **Baldivis** has become a go-to suburb for families seeking more space and affordability. Offering larger blocks of land at a more affordable price point compared to inner-city areas, Baldivis is expected to see continued growth in 2025. Its proximity to major transport links and new infrastructure developments makes it an attractive option for long-term investment.
2. Ellenbrook
Ellenbrook is a rapidly growing suburb in the northern corridor of Perth. Known for its family-friendly atmosphere and affordable housing options, Ellenbrook continues to attract first-time homebuyers and young families. The suburb is also benefiting from ongoing development projects, including retail, education, and public transport infrastructure, which will only boost its appeal in the coming years.
3. Cockburn Central
Located south of Perth’s CBD, Cockburn Central is emerging as a hub for modern urban living. With its proximity to major transport networks, shopping centres, and employment opportunities, it has become a popular choice for young professionals and investors. The suburb’s urban renewal projects and new developments are expected to drive property price growth in 2025.
4. Midland
Midland is a suburb that is seeing increasing interest due to its strong community infrastructure, affordable housing, and increasing transport connectivity. As one of Perth’s key regional hubs, Midland’s growing retail, commercial, and healthcare services will continue to support its property market, making it a strong contender for future growth in 2025.
5. Scarborough
For those looking for a lifestyle investment, Scarborough offers the perfect balance of beachside living and urban amenities. While property prices in Scarborough have already seen significant growth, continued development in the area, along with the suburb’s desirability, ensures it remains a solid option for those wanting a premium coastal lifestyle in Perth.
Perth Property Price Predictions for 2025
Looking forward, industry experts predict that Perth’s property market will continue to show resilience, with further price growth expected in 2025. If you are hanging out for the prices to drop, we’ve identified the factors to watch out for here.
Median House Prices to Reach $840,000
Experts forecast that the median house price in Perth will increase by 7-9% in 2025, potentially reaching $840,000 by the end of the year. With the influx of new buyers and ongoing demand in key suburbs, home values are projected to rise steadily throughout the year.
Unit Prices to Outpace Houses
While house prices are expected to rise significantly, the unit market in Perth may see an even sharper increase. With the growing trend of people downsizing, looking for more affordable options, or seeking low-maintenance living, unit prices in Perth are expected to see growth above that of houses, with some areas forecast to experience price hikes of 10-12%** in 2025.
Strong Rental Yields
Perth’s rental market is also expected to remain strong, with vacancy rates sitting at historic lows. As more people move to Perth in search of affordable housing options, rental yields are likely to increase. Investors looking to purchase in 2025 can expect healthy returns, particularly in high-demand areas like Fremantle, Cottesloe, and Subiaco.
What Does This Mean for Homebuyers in 2025?
For prospective homebuyers, 2025 presents both opportunities and challenges. With property prices set to continue their upward trend, those looking to enter the market should act sooner rather than later to avoid paying higher prices down the line.
Key Takeaways for Homebuyers in 2025:
Timing is crucial: With expected price growth, it’s wise to enter the market sooner rather than waiting. The longer you wait, the higher the price could climb.
Choose suburbs wisely: Research emerging suburbs and understand how infrastructure, amenities, and transport links could influence long-term growth in that area.
Get pre-approved for a mortgage: Given the competitive market, getting pre-approval for your home loan can give you a significant edge in securing your dream home.
According to the experts, Perth’s property market in 2025 is primed for continued growth. As median house prices rise and new suburbs come into focus, prospective homebuyers should stay informed to make the best decision. Whether you’re a first-time buyer or looking to invest, understanding the dynamics of Perth’s housing market is essential to achieving your property goals.
If you’re ready to take the next step in your home buying journey, Base Home Loans, as one of Perth’s best mortgage brokers is here to help. Our team of experts can guide you through the process and secure the best mortgage for your needs.
👉 Apply Now to get started on your homeownership journey today! or contact us for a free discovery call on your borrowing capacity and deposit requirements.
Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions.
