Are you sitting on the fence about whether to jump into the Perth property market? Wondering if prices will keep rising or if you’ve already missed the boat? The truth might shock you. Keep reading to discover how the market is evolving and what this means for your next move. 

Perth’s Property Growth in Review 

Over the past year, Perth’s property market has experienced an impressive surge, with home values rising by 17.1%. When looking at the past five years, the growth is even more striking, with an increase of 78.2%.  

However, there are signs of slowing growth as 2025 progresses. Home values, which saw rapid increases in 2024, have started to stabilise. 

Market Dynamics: Buyers vs. Sellers 

Despite the overall market slowdown, Perth’s property sector remains one of the strongest in Australia. However, recent changes suggest a shift in the balance between buyers and sellers: 

  • Slower Growth: While home values increased by only 0.4% in January and 1% over the past three months, this is a marked decrease from the 7.1% increase seen in mid-2024. 
  • Increased Stock: The number of properties on the market has risen by 6.2% compared to last year, offering buyers more options and greater negotiating power. 
  • High Demand: Despite the slowdown, Perth homes are still selling quickly, with properties now taking an average of 16 days to sell, slightly longer than the 10 days seen in 2024. This indicates continued strong buyer demand. 

Key Takeaways: 

  • For Buyers: The market offers more options and negotiating power, although competition remains strong. 
  • For Sellers: Properties that are priced right continue to attract multiple offers, so pricing strategy remains crucial. 

Perth’s Rental Market: Strong Growth Expected 

The rental market in Perth is also expected to remain strong due to several key factors: 

  • Low Vacancy Rates: Perth continues to experience low vacancy rates, which is pushing up rental prices. 
  • Regional Outperformance: The regional rental market is outperforming most capital cities. 
  • Strong Investor Demand: Investors remain attracted to Perth due to the city’s strong rental yields. 

Interest Rates and Economic Outlook: A Potential Game-Changer 

As we look ahead, there is potential for lower interest rates by the end of 2025, with forecasts predicting a drop to between 3.35% and 3.6%. This could have significant effects on the market: 

  • Increased Borrowing Capacity: Lower interest rates would give buyers more borrowing capacity, making homes more affordable. 
  • Stronger Market Confidence: As affordability improves, demand is likely to increase, leading to stronger market confidence. 
  • Investor Re-entry: As financing conditions improve, investors are likely to return to the market, further strengthening the property sector. 

The Perth Influx: Migration Trends 

Perth continues to be a destination of choice for both interstate and international migrants, driving housing demand. However, recent trends suggest some changes: 

  • Interstate Migration: Perth remains an attractive option for those relocating from Sydney and Melbourne due to its affordability. 
  • Slower International Migration: While international arrivals have slowed, the demand for housing remains stable. 
  • Stable Demand: A larger proportion of residents are choosing to stay in Perth, reducing turnover and maintaining demand. 

Market Outlook for 2025 

Looking ahead, the Perth property market is expected to remain strong but at a more moderate pace. Key trends to monitor include: 

  • Interest Rate Reductions: Lower interest rates could lead to an influx of new buyers, driving demand. 
  • Ongoing Infrastructure Investment: Infrastructure projects and urban expansion will continue to support long-term property value growth. 

Best Investment Opportunities: 

  • Mid-Tier Housing and Rental Markets: These sectors present some of the best opportunities for investors in 2025. 

Wealthology’s Expert Insights 

With consistent capital growth, strong rental yields, and high demand, Perth remains a prime choice for investment. The market’s resilience and growth prospects make it an attractive option for both buyers and investors looking for opportunities in the years ahead. 

Ready to Make Your Move? 

If you’re uncertain about your financial situation or would like to explore how you can achieve your property goals, we’re here to help. At Wealthology, we provide expert advice and personalised support to guide you through your property journey. 

📩 Contact Wealthology today to take the next step in your property journey! 

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