Perth housing market update [video] | July 2025

Key takeaways

Perth's property market re-accelerates, with values showing strong monthly and annual growth.

A strong rental market with high yields makes Perth very attractive for investors focused on cash flow.

Future growth is expected, but significant affordability constraints will temper the pace of gains.

The WA capital is once again capturing headlines. After a brief period of negative change late last year, the Perth property market has re-ignited, showing a significant acceleration in the pace of capital gains.

Perth's housing market demonstrated renewed strength in June, with the monthly rate of growth climbing to 0.8%. This positive momentum has contributed to a strong quarterly performance.

• Quarterly Growth: Dwelling values in Perth have increased by 2.1% over the last three months, the highest rate recorded since the three months ending October of the previous year.
• Annual Performance: Through the financial year, Perth's dwelling values are up by a solid 7.0%.
• Capital Gain: For the average homeowner, this annual growth translates to an impressive increase of approximately $54,000 in property value.

Note: While the current annual growth of 7.0% is strong, it's worth noting the incredible pace of the market a year ago, when values were surging at 24.4%. This indicates a market that is still growing, but at a more sustainable, less frenetic pace.

Perth housing market trends

The consistent growth across different timeframes highlights the sustained upward pressure on Perth property values. The average annual growth over the past decade sits at 4.8%, indicating that the current 7.0% annual growth is well above the long-term trend, showcasing the market's recent strength.

Source: Cotality Australia

The median dwelling value in Perth now sits comfortably over $800,000.

Houses, which make up a significant portion of the market, have a median value exceeding $855,000, reflecting the strong demand for standalone homes.

Units also remain a significant part of the market, with a median value of over $611,000, offering a more accessible entry point for many buyers.

Source: Cotality Australia

For investors focused on cash flow, Perth continues to be an attractive market. Gross rental yields remain robust, especially for units, which are delivering a strong 5.6% yield.

This is complemented by a significant 7.5% annual change in unit rents, suggesting that demand for rental properties, particularly in the unit sector, is incredibly high. While house rents are also growing at a healthy 4.4%, the unit market is the clear standout for rental performance.

Source: Cotality Australia

Market activity remains high, with nearly 52,000 properties sold in the past 12 months.

This high volume of transactions indicates strong buyer and seller confidence.

The slight annual dip of -1.9% in sales volume is minimal and suggests the market is stabilising at a high level of activity rather than cooling significantly, especially when viewed against the backdrop of tighter national supply levels.

Source: Cotality Australia

Perth house prices - the longer-term data

Several national factors provide strong tailwinds for continued growth. The consensus view is that we will see further interest rate cuts in the coming months, which will improve borrowing capacity and lift consumer sentiment. This is supported by a tight labour market that bolsters household confidence. Furthermore, a persistent undersupply of new housing is likely to keep a floor under prices.

However, it's not all smooth sailing.

Note: The biggest challenge remains affordability.

As values rise, they quickly erode the benefits of lower interest rates for new buyers. With the national household-debt-to-income ratio at a high 181%, and a cautious lending environment, there are clear constraints on how much further the market can surge. While the foundations for further modest growth are in place, we aren't expecting a return to the boom conditions of the pandemic. Instead, the outlook is for more balanced, sustainable growth as these competing factors play out.

About Tim Lawless Tim is Research Director at Cotality (formerly CoreLogic), analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au