Over the past few years, Perth has taken centre stage in the national property market—and by all indications, the spotlight isn’t fading any time soon.
Driven by a powerful mix of strong migration, limited housing supply, and relative affordability, Perth has defied the cooling trends seen in other capital cities. In fact, since 2020, Perth dwelling prices have surged more than 75%—the highest increase of any capital city in Australia.
Our city experienced a 14.3% rise in dwelling values over the past 12 months alone. Yet, despite this impressive growth, Perth remains one of the most affordable capital cities in the country, with a median home price of $770,000—still well below Brisbane, Canberra, Adelaide, and certainly Sydney.
The fundamentals continue to support growth with Perth still experiencing the highest amount of migration in the country.
And demand is showing no signs of slowing. Forecasts suggest between 72,000 to 80,000 new migrants will arrive in Perth in 2025, equating to the need for approximately 35,500 new homes. Further, only 16,900 new homes are expected to be built, well, you can do the math. With listings hovering around 5,000—far below a balanced market's 13,000—supply remains critically tight.
I think it would still be reasonable to predict that prices will rise between 10 and 15% this year in certain suburbs. particularly driven by owner-occupiers and upgrader demand.
The ongoing housing shortage is being intensified by builder insolvencies, low construction volumes, and continued rental pressure. Our rental market continues to thrive, with house rents up 6.4% and unit rents up 8.4% over the past year, pushing the median weekly house rent above $670.
Of course, no market is immune to global economic headwinds. Trade tensions—particularly those involving the US and China—have added an element of uncertainty but Perths lower debt levels and risk-averse buyers provide a buffer against severe downturns. Even in a worst-case scenario, Perth’s market is well-positioned to hold its ground in 2025-2026.
That said, not all segments are moving at the same pace. Investor-heavy areas that saw rapid growth during COVID are beginning to cool. Suburbs in the lower quartile—such as some in Kwinana, Armadale and Gosnells—are seeing longer days on market and a softening in price growth. But well-located, quality suburbs—especially coastal areas and key upgrader belts like Joondalup, Cockburn and Stirling—continue to attract strong buyer interest, often selling above asking price.
Suburb to watch this year:
BAYSWATER
I think the suburb of Bayswater will see substantial growth thanks to their lifestyle appeal and proximity to the CBD.
Bayswater is a charming riverside suburb located approximately 6 kilometres northeast of Perth's central business district. Nestled along the northern banks of the Swan River, it offers residents a blend of suburban tranquillity and urban convenience.