Perth House Prices Tipped to Rise 10% in 2025

The Perth property market is off to a strong start in 2025, with house prices on track to rise by up to 10% this year, according to REIWA’s latest quarterly market update.

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While this news is exciting for investors and homeowners, experts warn that ongoing global economic uncertainty could temper the pace of growth.

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A Solid Start to the Year

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REIWA President Suzanne Brown confirmed that house prices in Perth are trending toward 10% annual growth, with unit prices potentially exceeding that.

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The March quarter alone saw Perth’s median house price rise 2.7% to $770,000, while median unit prices jumped 4% to $520,000, both reaching record highs.

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Economic Uncertainty Looms

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Despite Perth’s strong fundamentals, global events, particularly the impact of Trump-era tariffs, pose a risk. 

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These tariffs could trigger a US recession and affect key trade partners, dampening consumer confidence and employment security in Australia.

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While potential interest rate cuts in 2025 might normally stimulate the market, Brown cautioned that ongoing economic uncertainty may limit their effect on property prices.

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What This Means for Sellers

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The days of instant offers and runaway price gains may be behind us for now. Properties are taking longer to sell, and in some cases, sellers are having to lower their asking prices to meet buyer expectations.

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What This Means for Buyers

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With house prices already on the rise and expected to climb further in 2025, buyers may feel pressure to act quickly. 

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However, the shifting market dynamics mean it’s more important than ever to take a measured approach.

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While price growth may continue, especially in high-demand suburbs, buyers now have a little more breathing room than during last year’s market. 

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Properties are spending more time on the market, and sellers are becoming more flexible with pricing. This could create opportunities for savvy buyers to negotiate better deals.

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That said, economic uncertainty remains a key factor. 

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If job security or borrowing power becomes less stable due to global economic shifts, buyers should be cautious and avoid overstretching their finances. 

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Pre-approval, realistic budgeting, and suburb-specific research will be essential in navigating this evolving landscape.

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Perth Rental Market: Growth Slows, But Pressure Remains

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The median house rent rose 3% in the March quarter to $690 per week, while unit rents held steady at $650. However, rent growth is expected to slow this year due to several factors:

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• Slower population growth
  
  
• Larger tenant households sharing costs
  
  
• Increased new supply in outer suburbs
  
  

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Despite these shifts, our team are still seeing high competition for inner-city and lifestyle-focused areas, where rental vacancies are still low.

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Whether you're buying your first home, looking to upgrade, or considering investing in regional WA, the 2025 market presents both opportunities and challenges. With conditions varying widely between suburbs and regions, expert guidance is more important than ever.

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Talk to our team at Rent Choice for local insights, realistic valuations, and tailored property strategies to help you make smart moves this year.

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Source:

REIWA - 250415 REIWA Property Forecast Quarterly Update 

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Tenzin, P. (2025, April 3). US tariffs hurt exporters and US consumers. Minerals Council of Australia. https://minerals.org.au/resources/us-tariffs-hurt-exporters-and-us-consumers/

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Commins, P., & Barrett, J. (2025, April 3). Trump’s tariffs could deliver a $27bn blow to Australia – and the cost of a global trade war would be far higher. The Guardian. https://www.theguardian.com/business/2025/apr/03/trumps-tariffs-could-deliver-a-27bn-blow-to-australia-and-the-cost-of-a-global-trade-war-would-be-far-higher

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