Perth’s property market is set for significant growth over the next five years, driven by strong population growth, a resilient economy, and continued housing demand outstripping supply. These trends indicate steady property price increases, making Perth an attractive market for buyers and investors.
With these Perth property predictions for the next 5 years, house prices and rental yields are expected to remain strong, cementing Perth’s status as one of Australia’s top-performing property markets.
Current Market Performance
As of 2025, Perth’s median house price is $1,074,000.
This reflects a significant growth of 18.4% over the past year.
The median unit price is now $500,000, showing steady growth.
These figures highlight the ongoing demand in Perth’s market.
For those asking, “How much does a house cost in Perth?”, these updated prices provide a clear benchmark.
2025-2030 Property Predictions
Over the next five years, Perth property prices will continue to rise. Here are the predictions:
House Prices
- Prices are expected to grow 6–8% per year.
- By 2030, the median house price could exceed $1.4 million.
Unit Prices
- Unit prices will rise by 3.5–4% annually.
- The median unit price may hit $650,000 by 2030.
Rental Market
- Median weekly house rent has now surpassed $670.
- Low vacancy rates keep rental yields at about 6.5%.
Projected Median House and Unit Prices in Perth
| Year | Median House Price | Median Unit Price |
|---|---|---|
| 2025 | $1,150,000 | $520,000 |
| 2027 | $1,300,000 | $590,000 |
| 2030 | $1,400,000 | $650,000 |
Long Term Outlook
Further out, the outlook for Perth property prices is good. The city will continue to grow, house prices and unit prices will keep rising.
This growth will be driven by population growth, economic resilience and limited housing supply, making Perth one of Australia’s best property markets over the next 5 years.
Suburb-Specific Predictions
Some suburbs in Perth will boom over the next 5 years due to affordability, infrastructure and demand.
For those considering investment, it’s worth exploring the properties for sale in Perth to identify promising opportunities.
Perth Suburbs Set to Boom
Suburb-Specific Predictions
| Suburb | 2025 Price | Growth Rate | Why It’s Growing |
|---|---|---|---|
| Baldivis | $700,000 | 8–10% | Affordable, family-friendly |
| Scarborough | $1,200,000 | 7–9% | Beach lifestyle |
| Bayswater | $950,000 | 6–8% | Close to CBD, upgrades |
| Cottesloe | $3,800,000 | 5–7% | Prestigious, high demand |
| Subiaco | $1,800,000 | 6–8% | Central, strong demand |
| Mount Lawley | $1,600,000 | 5–7% | Vibrant, heritage homes |
| Fremantle | $1,350,000 | 6–7% | Coastal charm, history |
Factors Influencing Future Growth of in Perth’s property market?
Growth in Perth’s property market is driven by:
- Population Growth: Western Australia’s population growth is one of the highest in the country, 2.8% in 2023. This has driven a lot of the housing demand in Perth.
- Low Supply: There are not enough properties for sale, and listings are well below the 5-year average. This supply shortage is putting pressure on property prices.
- Economic Stability: Perth’s economy is strong, particularly in the resources sector. This is good for first-home buyers and investors, making Perth a good market.
- Interest Rates: Despite interest rates rising, demand is still strong due to the local economy and limited supply.
- Government Initiatives: There are initiatives to increase housing supply through new builds but these won’t meet the demand in the short term.
Investment Opportunities in Perth
For investors Perth is a one off in the Australian property market. The city is more affordable than Sydney and Melbourne and has strong population growth and demand so it’s a great place to invest.
Affordability and Growth
Perth is one of the most affordable capital cities in Australia especially compared to Sydney and Melbourne. More affordable and the potential for big price growth over the next 5 years make it a great option for investors to get in or expand their portfolio.
Population Growth Driving Demand
Perth has one of the highest population growth rates in Australia, driven by domestic migration and international immigration.
The new residents are driving demand for housing, especially in suburbs that offer a great lifestyle and proximity to amenities. As demand outstrips supply Perth property prices will rise and those who invest now will benefit.
Suburbs to Watch: Cottesloe and Baldivis
- Cottesloe: This suburb is famous for its beaches and lifestyle, Cottesloe is one of Perth’s most sought-after suburbs. It always has high demand so it’s a great location for capital growth. While Cottesloe is more expensive, the potential for further price growth makes it a great long-term investment
- Baldivis: More affordable than Cottesloe but also expected to see big price growth. Baldivis is popular with families due to its community amenities and good schools. As more people move to Perth suburbs like Baldivis which offer affordability and lifestyle, are more likely to see big growth in property values.
Emerging Suburbs and Infrastructure Developments
Beyond these suburbs, there are many emerging areas in Perth that are getting new infrastructure. Suburbs with transport upgrades, new schools and shopping centres are great for property investors.
These developments make the area more liveable and drive up property prices as demand increases.
Rental Yields
Perth’s rental market is also great for investors. With rental yields one of the highest in Australia and low vacancy rates investing in rental properties in Perth can give good returns.
Suburbs close to the CBD or with easy access to public transport are great for rental investments as they attract more tenants.
3 Risks in the Perth Property Market
While the outlook for Perth’s property market is good, there are several risks that could impact it over the next 5 years. Investors and buyers should consider these when making decisions.
1. Economic Downturn
A sudden economic downturn could hit property prices and rental demand hard, especially in areas that are heavily reliant on the resources sector.
If global demand for iron ore were to drop, this could lead to job losses and reduced economic activity in WA. This could result in less demand for housing and downward pressure on Perth property prices
2. Government Policy Changes
Government policy changes are another risk to the Perth property market. These could include:
- Tax Changes: New taxes or changes to existing ones could affect property affordability. For example, an increase in stamp duty or land tax could make buying property more expensive and reduce demand. Changes to capital gains tax or negative gearing could impact property investment.
- Foreign Investment Restrictions: The Australian government has previously restricted foreign investment in residential real estate. If they do again, this could limit the number of buyers, especially in the higher end of the market where foreign investors are more active.
- Housing Affordability Measures: Governments may introduce policies to improve housing affordability, such as grants for first-home buyers or incentives for developers to build affordable housing.
While these could increase supply and get more local buyers in, they could also create market distortions that impact price growth.
3. Migration
Migration is a key driver of housing demand in Perth. If migration patterns change, especially if population growth slows, demand for housing could decrease.
This would likely mean slower growth or stagnation in some areas.
Perth’s population growth has been the engine of the property market so any changes to this trend will have big implications.
Conclusion
The next 5 years will be a growth period for Perth property prices. With strong economics, increasing demand and limited supply, Perth is one of the best property markets in Australia.
Whether you’re a buyer, investor or renter, you need to know these trends to succeed in the Perth property market.
For more info and current listings, go to the Perth property market or properties for sale in Perth.
Sources: Information sourced and compiled on 27/01/2025.
FAQs on ‘Perth Property Predictions’
Is property in Australia a good investment?
Investing in Australian property can be beneficial. It offers potential for capital growth and rental income. However, market conditions vary by region. It’s essential to research local markets and assess your financial situation.
What should someone absolutely not do when in Australia?
Avoid making hasty property purchases without proper research. Don’t neglect due diligence, such as property inspections and understanding local regulations. Also, refrain from overextending financially; ensure you can manage mortgage repayments even if interest rates rise.
Is Melbourne/Sydney property overpriced?
Sydney’s median house price is significantly higher than Melbourne’s. As of August 2024, Sydney’s median house price is 70% higher than Melbourne’s. This substantial price gap has reached unprecedented levels.
When should I buy a house?
The ideal time to buy is when you’re financially ready. Waiting for the “perfect” market conditions can be futile. Focus on your financial stability, ability to secure a loan, and long-term plans.
How to know if now is the right time to buy a house?
Assess your personal financial situation. Consider factors like stable employment, savings for a deposit, and the ability to service a mortgage. Consult with financial advisors and monitor interest rate trends. Remember, the “right time” is personal and varies for everyone.
