30 Nov Perth Set to Lead Australian Housing Market Growth in 2025
At Property Finance Invest, staying ahead of market trends is crucial to guiding clients through smart investment decisions. Perth, often overshadowed by the eastern states, is gaining attention as a standout performer in the Australian housing market. According to recent research, it is poised for significant growth through 2025, driven by strong population growth, affordability, and tight housing supply.
The Perth Property Landscape
In 2024, Perth’s housing market showcased resilience and dynamism. The Real Estate Institute of Western Australia (REIWA) reported that despite slightly reduced sales volumes, the total value of property transactions surged to $39.6 billion—a 13.2% increase year-on-year. Median house prices reached record highs, now sitting at $665,000, reflecting an 18.8% annual rise. This growth is attributed to Western Australia’s population boom and limited new housing completions, which have tightened supply and driven demand.
Affordability: A Key Attraction
For investors, Perth offers an appealing entry point into the property market compared to Sydney or Melbourne. Suburbs such as Cooloongup and Langford have median house prices under $550,000, presenting opportunities for buyers seeking value and strong yields. For instance, Langford’s rental yields stand at an impressive 6.1%, while Cannington’s unit market offers returns as high as 8.1%.
Strong Rental Market
The rental sector in Perth has also experienced remarkable growth. Weekly rental prices for houses and units are now $650 and $600, respectively. While rental price growth has stabilised recently, the ongoing population influx continues to apply pressure to the market. This environment supports steady demand and strong yields, making Perth an attractive destination for property investors.
Suburb Spotlights
Several suburbs have stood out in 2024 for their exceptional performance:
- Viveash: Led house price growth with a staggering 40.9% increase.
- Cottesloe: Dominated the unit market with a 50.9% rise, reflecting a shift in buyer interest toward premium properties.
- Cooloongup and Mount Hawthorn: These suburbs recorded the fastest sales, with properties selling in a median of just five to six days.
For first-home buyers and seasoned investors alike, identifying these growth hotspots can be the key to maximising returns.
Challenges in a High-Demand Market
The fast-paced nature of Perth’s market has created challenges for both buyers and sellers. Properties spend an average of just eight days on the market, making swift action essential for prospective buyers. Sellers, while benefiting from rapid sales, often face difficulties securing their next residence in such a competitive environment. For brokers, navigating these dynamics requires a combination of strategic planning, local expertise, and flexibility.
Opportunities for Investors
Looking ahead to 2025, Perth’s growth trajectory is supported by several factors:
- Population Growth: Western Australia’s population increase is driving sustained demand.
- Infrastructure Development: Investments in infrastructure projects are enhancing the city’s appeal.
- Supply Constraints: Limited housing stock will likely continue to support upward price momentum.
For investors, this is an opportune time to explore Perth’s diverse property offerings. Affordable suburbs with strong yield potential and areas undergoing rapid development are prime candidates for investment.
How Property Finance Invest Can Help
At Property Finance Invest, we specialise in helping clients navigate the complexities of the property market. Whether you’re a first-time buyer or a seasoned investor, our team provides tailored solutions to meet your unique needs. With Perth positioned for growth, we’re here to help you capitalise on this exciting market opportunity.
Ready to explore Perth’s potential? Contact us today to discuss how we can assist in achieving your property investment goals.