Perth housing market update [video] | August 2025

Key takeaways

Perth market reaccelerated with 0.9% July growth; units now outperform houses in value gains.

Median house value is $869K; units more affordable at $615K, drawing investors and first-home buyers.

Rent growth slowing, suggesting affordability limits reached despite ongoing supply shortages.

The Perth property market is once again gathering steam, showing clear signs of reacceleration after a period of moderation. According to the latest August 2025 Housing Market Update from Cotality, Perth stands out with robust growth, particularly in the often-overlooked unit sector.

Tim Lawless, Cotality's Research Director, notes that while the national market is seeing steady growth, Perth is carving its own path:

Housing conditions have been reaccelerating across Perth, with the market up 0.9% in July, on par with June to be the strongest monthly rise since September last year.

This momentum suggests renewed confidence among buyers and highlights the city’s unique market dynamics.

Perth housing market trends

The headline figure of a 0.9% rise in dwelling values for July places Perth as the second-strongest performing capital city in the country. This consistent growth points to a market with solid underlying demand, fuelled by low supply and an improving economic outlook.

Source: Cotality Australia

Note: The market is clearly heating up. Competition for quality properties is likely to increase, especially as we head into the spring selling season. Getting your finances pre-approved is more critical than ever to ensure you can act decisively when you find the right home.

While detached houses often steal the limelight, the real story in Perth right now is the remarkable performance of the unit sector. Bucking trends seen elsewhere, Perth's units are not just growing in value - they're outpacing houses.

Source: Cotality Australia

Tip: The affordability of units compared to houses is a significant driver of this trend. With a median unit value of $615,528 vs. $869,689 for houses, units present an attractive entry point for first-home buyers and a high-yield opportunity for investors. The strong rental returns further sweeten the deal.

For renters and landlords, the market remains incredibly challenging. Tim Lawless describes the situation bluntly:

Perth rental markets remain extremely tight, with vacancy rates holding around 1.3% over the past four months.

This severe shortage of available properties continues to put upward pressure on rents, although the pace of growth has started to moderate.

Source: Cotality Australia

Note: Despite the critically low vacancy rates, rental growth has slowed. After averaging 1% month-on-month during the 2023-24 financial year, the average monthly growth over the past six months has eased to just 0.4%. This could indicate that rental affordability has hit a ceiling, forcing a natural slowdown in the pace of rent hikes.

Perth house prices - the longer-term data

Looking ahead, the outlook for Perth remains positive, buoyed by several key factors. On balance, the positives appear to outweigh the negatives. As Tim Lawless concludes:

On balance, the tailwinds of lower interest rates, higher confidence and low housing supply are likely to outweigh the headwinds, providing the foundations for further modest growth in housing values in 2025.

For anyone involved in the Perth property market, the coming months will be crucial. Keep a close watch on listing volumes this spring, as they will be the ultimate test of buyer demand in this reaccelerating market.

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