Perth’s unit market is forecast to outpace houses in terms of price growth for 2025, according to the latest market update from the Real Estate Institute of Western Australia (REIWA). While the median house sale price is trending towards a 10% increase over the year, unit prices are on track for a 15% rise under current conditions.
REIWA President Suzanne Brown highlighted that the acceleration in unit price growth over the past 12 months is largely due to strong house price increases, pushing buyers towards more affordable alternatives like units, which include villas, townhouses, home units, and apartments. Villas and home units have seen the highest median sale price growth within the unit market, followed by townhouses, indicating a consumer preference for medium-density developments.
Key Market Statistics (as of June 2025):
- Perth Median House Sale Price: $786,000 (up 1.4% in the June 2025 quarter, and 16.4% annually)
- Perth Median Unit Sale Price: $540,000 (up 2.9% in the June 2025 quarter, and 20.0% annually)
- Both house and unit median sale prices are currently at record highs.
Factors Influencing Price Growth:
Economic uncertainty due to “Trump tariffs” remains a concern, potentially affecting consumer confidence and buying/selling behaviour. Conversely, further interest rate cuts could boost borrowing capacity and inflate prices, particularly in more affordable suburbs and for more affordable properties like units.
Top Performing Suburbs (Annual Growth to June 2025):
- Houses: While the Perth median house sale price rose 16.4% annually, the top 10 performing suburbs recorded over 28% growth. Bateman saw the most growth for houses, with its median sale price increasing 36.8% to $1,300,000.
- Units: The median unit sale price growth over the financial year was 20.0%, with the top 10 performing suburbs seeing growth over 32%. Bicton was the top-performing unit suburb, with its median sale price rising 55.6% to $770,000.
Perth Rental Market:
The rental market is seeing an easing of price growth compared to previous years, although challenges remain and conditions vary by suburb.
- Perth Median Weekly House Rent Price: Declined 2.2% from $695 (March 2025 quarter) to $680 (June 2025 quarter). Annually, it increased 4.6%.
- Perth Median Weekly Unit Rent Price: Rose 1.5% from $650 (March 2025 quarter) to $660 (June 2025 quarter). Annually, it increased 10.0%.
The slowdown in rental growth is attributed to an increase in supply and a softening of demand, though demand remains strong in areas close to the city.
Regional Western Australia:
Median house sale price growth is forecast across most regional centres, with varying rates.
- Top Performers (Forecast 2025 Growth):
- Albany & Geraldton: Likely 20% – 25%
- Bunbury, Busselton & Karratha: Around 15%
- Broome, Esperance & Kalgoorlie: Between 2% – 5%
- Port Hedland: Likely to see a decrease in median house sale price.
Regional rental price growth will also vary, with Broome’s market being seasonal, and growth slowing in Busselton, Kalgoorlie-Boulder, and Port Hedland, while remaining strong in Albany, Bunbury, Geraldton, and Karratha. Esperance rent prices are currently trending downwards but can be volatile.
⬆️Sales
Median Value
Homes: $790,000 ( ⬆️$15,000)
Units: $545,000 (⬆️ $20,000)
Average Days on Market: 12 (⬆️ 2)
⬆️Rentals
Median Rent
Homes: $680 / week (⬆️ $0)
Units: $650 / week (⬆️ $0)
Vacancy Rate: 2.0%
WhatsApp Josh on +61 (0)488038805 or josh@domeproperties.com.au for further information for a confidential discussion regarding buying, selling or renting
