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Perth Property Market Trends and Predictions for 2025

Perth’s property market has seen some interesting shifts in recent years, navigating through varying economic conditions, fluctuating interest rates, and evolving demand. With 2025 fast approaching, many buyers, sellers, investors, and industry experts are keen to understand what the future holds for the Perth property market.

In this blog post, we’ll explore the anticipated trends, key factors influencing the market, and predictions for Perth’s property landscape in 2025. Whether you’re thinking of buying, selling, or investing, understanding these trends will help you make more informed decisions.

1. Strong Demand for Housing: Population Growth in Perth

A key factor driving the Perth property market in 2025 is the ongoing growth in the city’s population. As more people move to Perth, particularly from interstate and overseas, the demand for housing will continue to rise.

Western Australia’s mining and resources industries are thriving, attracting skilled workers who are looking for long-term housing solutions. Additionally, Perth is becoming an increasingly popular destination for those seeking a more affordable lifestyle compared to other major cities like Sydney and Melbourne.

What this means for the market in 2025:

• Increased demand for housing: More people in the city means more competition for properties, particularly in desirable locations.
• New housing projects: Developers are likely to respond to the demand with more residential developments, particularly in expanding suburbs and areas with good transport links.

2. Limited Housing Supply and Rising Property Prices

While demand for housing in Perth is expected to rise, the supply of properties may struggle to keep pace. Construction challenges, such as rising material costs and delays in building timelines, could hinder the completion of new housing projects. Additionally, many homeowners may be hesitant to sell due to concerns about the affordability of upgrading their homes.

This supply-demand imbalance could lead to upward pressure on property prices, particularly in well-established and desirable areas.

What this means for the market in 2025:

• Price growth: Property values in Perth are expected to rise, particularly in central areas, near the coast, and in regions with easy access to public transport and key amenities.
• Increased competition among buyers: With limited stock, buyers may find themselves competing for properties, especially those in prime locations.

3. Suburb Shifts: The Rise of Suburban Living

Remote work and hybrid working models are continuing to gain traction, and many people are now seeking more space and affordability outside of central urban areas. Suburbs like Baldivis, Ellenbrook, and Yanchep are already seeing increased interest due to their larger homes, lower prices, and good access to transport links.

In 2025, this trend is likely to continue, with more buyers willing to commute longer distances for more spacious properties and a quieter lifestyle. Suburban areas are increasingly seen as offering better value, particularly as more people embrace flexible working arrangements.

What this means for the market in 2025:

• Growth in outer suburbs: Expect increased demand in suburban areas, which could lead to more development and higher property prices in these regions.
• Interest in regional areas: More buyers and renters may look to regional Western Australia for a more affordable lifestyle, away from the hustle and bustle of the city, yet still within reach of key services and transport routes.

4. Investment Opportunities: Perth as a Hotspot for Investors

Perth’s property market remains an attractive proposition for investors, especially given the relatively affordable property prices compared to other Australian capital cities. As the market continues to show resilience and growth, Perth is expected to remain an appealing option for both local and interstate investors.

Areas with strong rental demand, such as those near universities, hospitals, and business hubs, will continue to draw investor attention. Additionally, as major infrastructure projects continue, regions near new transport links and commercial developments will likely see an increase in value.

What this means for the market in 2025:

• Strong rental demand: With more people moving to Perth, rental properties will remain in high demand, making it an attractive proposition for investors seeking reliable rental yields.
• Capital growth opportunities: Investors in Perth’s property market may benefit from both strong rental returns and capital appreciation, particularly in areas with high demand or near upcoming infrastructure projects.

5. The Impact of Interest Rates and Economic Conditions

Interest rates are always a key factor that will shape the Perth property market in 2025. The Reserve Bank of Australia’s (RBA) monetary policy will influence borrowing costs, which in turn will affect both buyer and investor activity. If interest rates remain higher, borrowing may become more expensive, which could slow down the market, particularly for first-time buyers.

Conversely, if the RBA takes a more accommodative approach and reduces interest rates, it could encourage more buyers to enter the market, stimulating further demand.

What this means for the market in 2025:

• Interest rate stability: If interest rates remain steady or decrease slightly, it could support market activity, allowing buyers and investors to continue entering the market.
• Potential slowdown in growth if rates rise: Should interest rates increase significantly, we may see a cooling of the market, with slower price growth or even price corrections.

Conclusion: Perth Property Market in 2025

Looking ahead to 2025, Perth’s property market is expected to continue its growth, driven by population increases, limited housing supply, and a shift towards suburban living. While rising property prices and higher competition may present challenges for buyers, the market offers great opportunities for investors, particularly in high-demand areas and regional locations.

Understanding these trends will help both buyers and sellers make more informed decisions. If you’re planning to buy, sell, or invest in Perth’s property market, staying ahead of these trends will be key to navigating the market successfully.

Are you ready to make your move in the Perth property market? Halyn Property are your trusted partners in real estate. Contact us if you're thinking of selling or renting out your property. We’re here to guide you through every step of the process and ensure you achieve the best possible outcome.

Get in touch with us today, and let’s turn your property goals into reality!