Perth continues to lead the nation in property value growth as of August 2025. CoreLogic data shows dwelling values rose 0.9% in July, pushing quarterly growth to 2.6% and annual growth to 12.0%, representing the highest rate among Australia’s capital cities
- Median values:
- Overall Perth dwelling: $736,264
- Houses: $869,689 (median)
- Units: $615,528 (median)
- Units are seeing higher gross yields (~5.6%) compared to houses (~4.1%)
REIWA Forecast & Broader Projections
The Real Estate Institute of Western Australia (REIWA) forecasts property price growth of 5–10% in 2025, following a remarkable 24.2% increase in median house prices during 2024 (from $600,000 to $745,000) and a 21.4% jump in unit prices (to $500,000)
- REIWA’s latest quarterly insights reiterate the 10% growth potential this year, with unit markets potentially outpacing houses
- SQM Research predicts Perth dwelling prices may climb 14–19%, driven by the robust resources sector
- A consensus from top forecasters suggests an average growth of around 8% in 2025
National Context
In a broader national outlook, Reuters reports that home prices in Perth are expected to rise about 5% annually over the next three years, keeping it among the property growth leaders alongside Brisbane and Adelaide.
Key Drivers of Growth
- High rental demand & tight rental market: A viral video illustrating a queue of 92 applicants for a rental inspection in Osborne Park underscores acute rental market pressure, with Perth rents having surged 63% over the past decade
- Investor dominance & rate environment: Record lending to investors—$130 billion in the year to June 2025—alongside rate cuts, is fuelling buying activity and pricing, pushing some first-time buyers to delay purchase plans
- Immigration spike & limited supply: With nearly 246,000 arrivals in early 2025, rental vacancy rates have dropped to 1.2%, reinforcing demand and pushing investors back into the market.
- Persistent supply constraints: Perth continues to battle limited housing supply, with suburbs like Fremantle, Bayswater–Bassendean, Joondalup highlighted among 25 regions across Australia predicted to see over 10% capital growth, regardless of broader economic shifts.
Suburb-Level Outlook
While August projections by suburb are limited, several key areas are emerging:
- Bayswater–Bassendean & Fremantle: Identified among WA’s high-growth pockets due to tight supply and demand imbalance
- Joondalup: Similarly flagged as a growth hotspot within Greater Perth).
- Bertram (in the south metro area): Previously noted for strong early growth—with a median house price around $430,000, solid rental yields (~5.9%), and over 10% capital growth in preceding 12 months—this suburb remains one to watch for value and expansion potential
Perth Outlook – August 2025
A unique combination of factors has created ideal conditions for residential property investment in Perth—particularly for those eyeing the apartment market.
Western Australia’s capital is experiencing rapid population growth, record-low vacancy rates, and a marked slowdown in approvals for high-density housing. These pressures are converging to drive demand and tighten supply, especially in the apartment sector.
Historically, Perth has often been overlooked by investors from the eastern states, due to factors such as distance, limited national media coverage, and previous market fluctuations. However, that is changing. As property affordability continues to deteriorate in Sydney, Melbourne, and Brisbane, more investors are turning their attention west.
Perth now represents a compelling alternative—offering both value and strong rental performance. In fact, apartment yields are outpacing those for houses and units in the eastern capitals. According to the Real Estate Institute of Western Australia (REIWA), unit yields reached 6.2% in the year to March 2025, compared to just 4.5% for houses. Over the past five years, apartment rents have surged by 82.9%, underlining the strength of tenant demand.
These favourable conditions are just part of what makes Perth apartments an attractive proposition for investors, according to Ronald Chan, CEO of Finbar Group, Western Australia’s largest apartment developer. He notes that current market dynamics—particularly in the apartment sector—are creating long-term opportunities for those ready to enter the market.
Conclusion
As of August 2025, the Perth property market remains Australia’s strongest growth engine, underpinned by affordability, investor momentum, population growth, and supply shortages. REIWA expects 5–10% further growth this year, with some estimates hitting upward of 14–19%. Key suburbs—including Bayswater–Bassendean, Fremantle, Joondalup, and Bertram—remain areas to watch, providing both capital growth and rental yield opportunities.
For renters and first-home buyers, competition remains fierce amid rising rents and investor activity, suggesting sustained caution. Yet for investors, this environment offers robust returns and continued upside, particularly in high-demand suburbs with limited supply.
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