After a stellar year of growth in 2024, Perth's property market has left investors questioning whether it can maintain its momentum in 2025. Following one of the strongest growth years since the mid-2000s, Perth saw its median property price climb by 24.2%, reaching a record $745,000. But what does 2025 hold?
A Snapshot of 2024’s Market Success
The Real Estate Institute of Western Australia (REIWA) revealed that houses sold at a median of nine days for most of 2024, reflecting strong buyer demand. While Perth outperformed other capitals like Sydney and Melbourne, it wasn’t just the premium suburbs driving the boom. Suburbs such as Marmion (+55.3%) and Medina (+45.8%) led the way in house price growth, showcasing the broad appeal of Perth’s market across various price points.
Similarly, the unit market showed resilience, with suburbs like Gosnells (+52.6%) and Orelia (+45.2%) outperforming expectations. This highlights Perth's relative affordability compared to other capital cities, drawing interest from local and interstate investors.
Predictions for 2025
Opinions on Perth's trajectory for 2025 remain divided. REIWA’s CEO, Cath Hart, believes strong economic fundamentals, population growth, and affordability will keep Perth's market buoyant. Key investment hotspots include prestige areas like Cottesloe and City Beach, as well as more affordable suburbs in Perth’s eastern corridor, such as High Wycombe and Midvale.
However, not everyone shares the same optimism. Senior Mortgage Broker Jonathan Preston predicts Perth’s growth will moderate as affordability diminishes, aligning more closely with markets like Sydney and Brisbane. Meanwhile, concerns over China’s slowing economy could impact Western Australia’s resources sector, potentially dampening local economic conditions.
What This Means for Investors
Despite some cautionary forecasts, Perth remains an attractive market for both seasoned and first-time investors. Its affordability, lifestyle, and strong rental yields continue to set it apart from other Australian capitals. Julie Kelley, Global Sales and Marketing Manager for ‘Aussie Property’, predicts double-digit growth in Perth’s housing market for 2025, particularly in affluent areas like Mount Hawthorn and Subiaco and affordable suburbs like Atwell and Armadale.
For those looking for untapped potential, Perth’s eastern corridor offers larger blocks and opportunities for urban infill. These areas, close to infrastructure like train lines and the airport, present solid investment opportunities in both residential and commercial developments.
The Verdict
While Perth may not see the explosive growth of 2024, its fundamentals suggest steady gains in 2025. Investors should look beyond the headlines to identify suburbs with the most growth potential and remain mindful of external economic influences. With the right strategy, Perth continues to be a market of opportunity.
