Units Poised to Outpace Houses in Perth’s 2025 Price Growth
Perth’s property market is set for further momentum in 2025, with units predicted to outperform houses in price growth. According to REIWA’s latest Market Forecast Update, units are expected to edge ahead—not just match—the strong performance of houses in the year ahead.
🔍 Key Market Highlights
-
Unit Market Strength
While house values are on track for around 10% growth, unit prices are projected to exceed that mark. This shift signals a growing appetite for more affordable, accessible housing options. -
Moderation Following 2024’s Boom
After a standout year in 2024—where house prices surged approximately 24% and units around 21%—growth in 2025 is expected to moderate to a more sustainable 5–10%. -
A Calm Before the Storm?
Market activity may slow slightly in early 2025 as buyers and sellers navigate state and federal elections, along with broader economic uncertainty and ongoing global tensions. -
Interest Rate Outlook
Interest rates are anticipated to drop later in the year, which could unlock borrowing capacity and reinvigorate market confidence. Timing remains the key unknown, but momentum is likely to build once rates begin to ease.
🏘️ Underlying Market Strength
Several factors continue to support price growth:
-
Population Growth & Economic Resilience
Western Australia is experiencing strong population growth, supported by a healthy employment market and robust economic conditions. -
Persistent Buyer Demand
While buyer urgency has eased slightly, demand for quality established homes remains high. Buyers are taking a more measured approach, and some sellers may need to adjust their price expectations to meet the market.
💼 Rentals & Regional Markets
-
Rental Market Trends
Perth’s rental market has begun to stabilise. The vacancy rate, which was at a record low of 0.4%, has now increased to around 1.9%. Median rents remain elevated, but growth is expected to slow in 2025, offering some relief to tenants. -
Regional Hotspots
Several regional centres are forecast for strong performance this year. Albany, Busselton and Geraldton are tipped for the highest growth, while Bunbury, Karratha, Kalgoorlie and Broome are also expected to see steady gains.
🎯 What This Means for You
-
Buyers: Units present a compelling opportunity in 2025, especially for those looking for value and long-term gains.
-
Sellers: The days of rapid sales and bidding wars are cooling. Accurate pricing and strong presentation will be essential for success.
-
Property Investors: Although rental conditions are easing slightly, key metro and coastal areas with tight supply remain attractive for yield-focused investors.
✅ Final Takeaways
-
Units are set to outperform houses in price growth this year.
-
Property values are forecast to rise by 5–10% across the board.
-
Interest rate changes and election cycles may impact market timing.
-
Regional WA offers significant upside in key towns.
-
Rental conditions are stabilising, but remain favourable for landlords.
This is an ideal time to review your property goals and make informed moves in the year ahead. Whether buying, selling or investing, staying proactive and well-advised will be key to navigating the evolving Perth property landscape.
Market insights sourced and paraphrased from the Real Estate Institute of Western Australia (REIWA).
