Perth Leads the Nation in Price Growth
Perth emerged as Australia’s standout property market of 2025, recording the strongest price growth of any capital city and attracting a surge of investor capital from the eastern seaboard.
The Numbers
REIWA and Cotality data confirmed:
- Perth median house price: $1,000,000 by December 2025 quarter
- Annual growth: +17.9% (houses), +25.9% (units/villas/apartments)
- Investor loan commitments in WA: up 30.4% year-on-year to $4.66 billion
- Rental vacancy rate: consistently below 1% through 2025
- Median weekly rent (houses): $700 (+5.6% year-on-year)
Why Perth
Three structural factors underpin the outperformance:
- Economy: WA’s resource sector remains in a strong cycle, supporting organic employment and household formation.
- Supply deficit: New dwelling completions chronically undershoot population growth, with construction cost pressures slowing the pipeline.
- Relative value: Despite strong gains, Perth entered 2025 with median prices well below Sydney and Melbourne, offering gross yields of 4.3–5.0% alongside double-digit appreciation.
A Note of Caution
By late 2025, some agents reported that the pace of multiple-offer situations was beginning to ease in certain northern suburbs, suggesting the sharpest growth phase may be moderating as affordability constraints emerge.
