2025 Perth Real Estate Forecast: What Buyers and Sellers Need to Know

15 Jan 2025 Posted By: Porter Matthews Metro

Perth's Real Estate Market Overview

Perth's property market is positioned for growth in 2025, with REIWA forecasting a price increase of up to 10%. This follows a remarkable 24.2% growth in median house prices in 2024, elevating the median house sale price from $600,000 at the end of 2023 to $745,000 by December 2024. Units also saw significant gains, with a 21.4% increase, raising the median unit price to $500,000 from $412,000.

While the growth rate is expected to moderate in 2025, REIWA predicts a 5-10% increase in both house and unit prices. The current strong market fundamentals, including robust population growth, low unemployment, and a thriving economy, suggest that Perth's property market will continue to favor sellers.

Key Factors Influencing 2025's Market

Political and Economic Influences

Two key factors could affect market activity in early 2025: the upcoming state and federal elections and potential changes in interest rates. Historically, market activity tends to slow before elections, especially when housing policies are in focus. Additionally, the ongoing debate over interest rate cuts adds a layer of uncertainty. Should rates decline, market activity is expected to rise.

Population Growth and Demand

Perth's population growth, recorded at 2.8% for the year to June 2024, remains a driving force in the property market. The demand for established housing continues to be high, with properties selling quickly. However, affordability is likely to become a focal point, with buyers gravitating towards more affordable suburbs and units.

Perth's Rental Market Trends

In 2024, the Perth rental market experienced a slight easing, with rent prices stabilizing after several years of strong growth. The vacancy rate rose from a record low of 0.4% in March to 1.9% by year-end, reflecting changes in supply and demand dynamics. Despite this, rent prices reached new highs, with the median dwelling rent at $650 per week, up 8.3% from the previous year.

Ms. Hart of REIWA anticipates further rent price growth in 2025, albeit at a slower pace. The rental market pressure is expected to ease as more investor-owned new builds are completed, leading towards a more balanced market.

Expert Insights and Predictions

Industry experts generally agree that Perth's property prices will continue to rise in 2025, albeit at a slower rate. Predictions for price growth range from 5% to 12%. Suburbs with strong amenities and those close to the city or coastline are expected to see the most growth.

Is Now a Good Time to Buy?

Experts agree that now is a favorable time to buy, particularly for owner-occupiers and long-term investors. While affordability constraints are becoming more evident, Perth remains one of the most affordable capital cities in Australia. With expected interest rate cuts and sustained demand, entering the market sooner rather than later could be advantageous.

Conclusion

Perth's real estate market in 2025 is set to continue its upward trajectory, though at a more moderate pace compared to 2024. Both buyers and sellers should remain informed and strategic, considering market conditions, political factors, and economic trends. For personalized advice and insights, consulting with local REIWA agents is highly recommended to navigate the evolving market landscape.

Looking to buy or sell? Our team of experienced local agents is here to offer invaluable insights and guide you to the best choices in Perth's vibrant real estate market

Source:

https://reiwa.com.au/news/house-prices-to-grow-up-to-10-per-cent-in-2025-reiwa-market-forecast-update/
https://www.domain.com.au/news/what-will-perths-property-market-do-in-2025-five-experts-consult-their-crystal-balls-1341969/