The Perth property market is poised for significant growth in 2025, with REIWA projecting house prices to rise by up to 10%. This follows an impressive 2024 performance, which saw the median house sale price surge by 24.2%, climbing from $600,000 at the end of 2023 to $745,000 by December 2024.
REIWA CEO Cath Hart highlighted the key drivers of this growth, stating, “While the growth rate is expected to moderate in 2025 compared to 2024, we anticipate house and unit sale prices to increase by 5% to 10%.”
Key Highlights of 2024
- Record High Prices: Perth’s median house price ended 2024 at $745,000, 36.7% higher than its previous peak of $545,000 in 2014.
- Unit Price Growth: The median unit price rose by 21.4%, reaching $500,000, surpassing the 2014 peak of $450,000.
Factors Influencing 2025 Market Activity
Several factors may impact Perth’s property market in early 2025:
- Elections: State and federal elections could temporarily slow market activity as buyers and sellers wait for outcomes.
- Interest Rates: Speculation around interest rate cuts might lead to market hesitancy, although rate declines could stimulate demand later in the year.
- Strong Fundamentals: Despite slowing growth, Perth’s market remains robust due to low unemployment, strong population growth, and economic stability.
Demand for affordable properties is expected to dominate in 2025, with units continuing to be a popular choice for first-time buyers and budget-conscious investors.
Perth Rental Market: A Look Back at 2024
The rental market showed signs of easing in 2024, with the vacancy rate rising to 1.9% by year-end. Despite this, rents hit record highs:
- Median Weekly Rent: Reached $650, up 8.3% from the previous year.
- House Rents: Ended 2024 at $670 per week, an 8.1% year-on-year increase.
- Unit Rents: Surged by 14.0% to $650 per week.
Looking ahead, REIWA forecasts more periods of rent price stability in 2025 as investor-owned new builds are completed. However, strong demand for rentals near the CBD and lifestyle hubs is likely to sustain some upward pressure on prices.
Regional WA: Strong Growth in Southern Centres
The southern regional centres, particularly Bunbury, are expected to lead WA’s property growth in 2025, with forecasts of 10% to 15% price increases. Key drivers include:
- Employment Opportunities: Bunbury offers stable job prospects and growing infrastructure.
- Lifestyle Appeal: FIFO families and remote workers are increasingly choosing Bunbury for its affordability and quality of life compared to nearby Busselton and Dunsborough.
Other regional hotspots like Albany, Geraldton, and Esperance are also expected to experience growth between 5% and 15%, while northern centres like Karratha and Port Hedland may see minimal price changes.
Links:
Australian Bureau of Statistics (ABS) for official data on housing price trends Click Here
Strong population growth, with WA recording 2.8 per cent growth in the year to June 2024 Click Here
For the statement “interest rates will be cut” visit official website of the Reserve Bank of Australia (RBA) Click Here
Advice for Buyers and Sellers
With varying conditions across WA, it’s essential to consult local experts for tailored advice. The strong fundamentals underpinning Perth’s market suggest continued opportunities for both buyers and sellers in 2025.
Thinking of Selling?
Ready to unlock your property’s full potential? Contact David Beshay for a personalised and accurate in-person assessment that aligns with the dynamic real estate landscape in Mandurah. Contact David Beshay here to get the most up to date appraisal of how much your home will be worth in this market! Otherwise feel free to view David’s recent sales here