Perth Market Update — 2025 Reality Check
- Strongest capital city for property growth: Perth continues to lead the nation in price growth. Median house prices now sit between $780,000 and $850,000, with units ranging from $535,000 to $607,000
- High growth rates: Annual increases are robust—houses up 8–18%, units even higher at 13–21%
- Rapid market movement: Dwelling values rose 0.9% in July 2025, pushing quarterly growth to 2.6% and annual growth to around 6.5%; units outperformed houses (unit growth 10.4%, median ~$615,500; house growth 6.0%, median ~$869,700)
- Transaction speed & tight supply: Properties typically spend just 15 days on market. Weekly rents are approximately $755, with a very low vacancy rate of 0.7%
- “New normal” affordability squeeze for buyers: In suburbs like Piara Waters, homes that sold for ~$450,000 three years ago now see offers $30k–$40k above asking price. Perth’s median house price is up 7.8% YoY, reaching $855,395 in June 2025, with further growth projected by year-end.
Interest Rate & Lending Landscape
- RBA easing underway: As of August 2025, the official cash rate is 3.60% following a 0.25% cut
- Banks passing on cuts: Major banks like Westpac, CBA, and Macquarie are passing the rate cuts to variable loan holders
- Fixed-rate shifts: Westpac now offers two-year fixed rates at 4.89%, the first below 5% among major banks; others are also offering fixed rates under 5%
- More cuts expected: Forecasts suggest further cuts may come before year-end, potentially lowering borrowing costs even further.
- The Federal Government has expanded the Home Guarantee Scheme for First Home Buyers, allowing them to get into the market with a 5% deposit (from October 2025). This may see competition and demand further intensify for properties under $850,000.
How to Strengthen Your Offer in Today’s Perth Market
Perth remains a fast-moving, highly competitive market. If you’re serious about buying a property in this market, you need to come prepared with your A-Game. Here’s our top tips for putting your best foot forward in heated market conditions:
1. Solidify Your Budget
- Know your borrowing capacity and stick within it to avoid getting into trouble with finance approval. Organise a Pre-approval with a lender who conducts a full assessments, a good mortgage broker can guide you on this.
2. Consider Bridging Finance
- If selling one property to buy another, bridging loans remove “subject to sale” conditions, making your offer cleaner and more attractive.
3. Keep Employment Steady & Avoid Big Debts
- Lenders prefer stable income: 3 months for part-time; 6 months for casuals. Avoid new large expenses or reducing credit limits before applying.
4. Do Your Market Homework
- Track recent sales, review REIWA/landgate insights, and talk to local agents to ensure your offer is realistic for the area.
5. Customise Your Offer & Consider your Terms
- Know if the seller prefers a shorter or longer settlement, and tailor your offer accordingly to give them flexibility. The more conditions that your offer has, the less attractive it may be to the seller – especially if the are multiple offers around similar amounts. We’re not saying to forego your due diligence, but just think about where you may be able to safely compromise.
6. Broaden Your Search
- If bids are missing in specific areas, consider alternate locations or smaller homes that still offer excellent opportunities.
7. Rely on a Skilled Mortgage Broker
- A top broker simplifies the process, selects lenders based on pre-approval rigour and timing, can provide valuation insights, and helps you put together an offer with confidence.
What’s Changed Since 2024
| Factor | 2024 Scenario | 2025 Update |
|---|---|---|
| Market growth | Rapid rise, up ~17% | Continued strong growth, houses +8–18%, units +13–21% |
| Median prices | Lower affordability | Median now $780–$850k houses; ~$615k units |
| Market pace | 11 days DOM | Around 15 days, still fast |
| Interest rates | High, uncertain | RBA easing; cash rate at 3.6%; fixed rates creeping below 5% |
| Lending dynamics | Cautious environment | More competitive rates; pre-approvals still key |
| Strategy | Basic clean offers selling above asking price | More nuanced – flexible terms, bridging, broker power |
Ready to get started with a pre-approval?
Working with an experienced Perth mortgage broker could be the advantage you need to get your offer accepted in a heated property market. We can help arrange full-approval (not just your basic online calculator), provide valuable valuation insights, connect you with our trusted network of Perth realestate agents for accurate information, and share our decades of experience with buying and selling properties to help you formulate an offer with confidence. If you’re ready to work with one of the best mortgage brokers Perth has to offer, please reach out today.
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.
