Perth’s property market is predicted to lead Western Australia’s growth in 2025, with median house prices expected to rise by 8% over the next year. The city’s strong economic performance, combined with continued population growth and a shortage of available housing, is driving demand and pushing prices higher.
Suburbs close to the CBD, such as Mount Lawley, Subiaco, and Leederville, are expected to see some of the strongest price growth, with demand outstripping supply in these popular areas. Coastal suburbs, including Cottesloe and Scarborough, are also forecasted to perform well, with buyers willing to pay a premium for properties with ocean views and proximity to the beach.
The luxury segment of the market is expected to continue its strong performance, with high-net-worth individuals and international investors driving demand for high-end properties. However, there are concerns that rising interest rates could impact buyer confidence and slow down the pace of growth in the broader market.
While Perth is expected to lead the state in terms of price growth, other areas of Western Australia are also predicted to see positive trends. Regional towns such as Busselton and Margaret River are likely to benefit from increased interest in lifestyle properties, particularly from buyers looking to escape the city and take advantage of the state’s natural beauty.
The rental market in Perth is also expected to remain strong, with low vacancy rates and rising rents continuing to attract investors. However, affordability will remain a key concern, particularly for younger renters and those on lower incomes.
Overall, the outlook for Perth’s property market in 2025 is positive, with strong demand expected to support ongoing price growth. However, the potential impact of interest rate changes and broader economic conditions will need to be monitored closely.