Key takeaways
Perth is Leading the Nation: Perth's property market is outperforming other major capitals with a remarkable 4% increase in dwelling values over the last quarter, the strongest rise in a year.
Severe Lack of Supply: A critical shortage of homes for sale, with listings down 45% from the five-year average, is fueling intense buyer competition and rapid sales, with homes lasting just 12 days on the market.
Rental Market Heats Up: Perth's rental sector is also booming, with annual rent for units jumping by 7.0%, reflecting the high demand and providing strong returns for investors.
As we head deeper into the spring selling season, the numbers are painting a clear picture of strong growth and intense demand. Let's break down the key insights for Perth.
Perth's Property Values Continue to Climb
Perth is once again at the forefront of home value growth among the major Australian capital cities. The momentum seen in recent months has continued, with significant gains over both the month and the quarter.
A standout statistic is the 4% quarterly rise in dwelling values, the strongest quarterly change in a year. This surge is a clear indicator of the robust health of the local market.
| Timeframe | Change in Dwelling Values |
|---|---|
| Three months | 4.0% |
| Twelve months | 7.5% |
| Avg. annual growth (past decade) | 5.5% |
Source: Cotality, October 2025
The Squeeze: Supply vs. Demand
A significant factor fueling Perth's property price growth is the severe imbalance between the number of homes for sale and the number of active buyers.
- Listings are scarce: The number of properties advertised for sale is tracking 45% below the five-year average.
- Sales activity is high: In contrast, sales activity through the quarter was estimated to be 6.8% above the five-year average.
This disconnect between supply and demand is creating strong selling conditions and putting upward pressure on prices. Homes in Perth are selling quickly, with a median time on the market of just 12 days.
- Also read:Property Prices Accelerated in October | Latest stats from Dr. Andrew Wilson
- Also read:Melbourne property market forecast for 2026 | Is it a good time to invest in Melbourne?
- Also read:Latest Property Price Forecasts Revealed. Australian Property Market Outlook 2026: Where To For Prices With Rate Cuts Delayed.
- Also read:Brisbane Property Market Forecast [2026] – What’s Ahead & Where to Invest
- Also read:Sydney property market forecast for 2026. Is it a good time to invest in Sydney?
A Look at Perth's Rental Market
The rental market in Perth is also experiencing significant pressure, with strong returns for landlords.
| Rental Rates and Yields | Data |
|---|---|
| Weekly rent (Houses) | $700 |
| Weekly rent (Units) | $567 |
| Gross rental yield (Houses) | 4.0% |
| Gross rental yield (Units) | 5.4% |
| Annual change in rent (Houses) | 5.4% |
| Annual change in rent (Units) | 7.0% |
Source: Cotality, October 2025
What's Fuelling the Fire?
Several broader economic factors are contributing to the strength of the Perth market:
- Increased Borrowing Capacity: Lower interest rates have played a key role in supporting housing activity.
- Strong Labour Market: A tight jobs market and real income growth are supporting housing demand and borrowing capacity.
- Consumer Confidence: An overall upswing in consumer confidence is encouraging major purchasing decisions.
As we continue through spring, all signs point to a sustained period of strength for the Perth property market. With low stock levels and high demand, the market is firmly in the hands of sellers.
