Perth property prices are set to grow up to 10 per cent in 2024, according to REIWA's 2025 property market quarterly update.
"Perth's median house sale price recorded 24.2 per cent growth in 2024, with the median house sale price rising from $600,000 at the end of 2023 to $745,000 in December 2024," REIWA CEO Cath Hart said.
"The median unit price increased 21.4 per cent to $500,000 over the same period, up from $412,000.
"The median house and unit sale prices are expected to grow in 2025, but at a slower rate than 2024. Based on current conditions, REIWA is expecting between five and 10 per cent growth."
Both Perth's house and unit median sale prices ended 2024 at record highs.
The median house price was 36.7 per cent higher than the previous peak of $545,000 set in 2014. The median unit price surpassed its previous peak of $450,000 set in 2014 in July and finished the year 11.1 per cent higher than that figure.
Ms Hart said while moderate growth was forecast for 2025, there were a couple of factors that could impact market activity in the first half of the year, including the state and federal elections and interest rates.
"We know market activity often slows in the lead up to elections as buyers and sellers wait to see the outcome. This is especially so when housing is one of the key policy areas — as will be the case in both elections," she said.
"The ongoing debate over when interest rates will be cut is currently causing some hesitancy in the market. Should interest rates decline in the coming months we are likely to see market activity increase."
Ms Hart said there had been a lot of talk about falling prices and buyer's markets on the east coast, but conditions in Perth still favoured sellers and further price growth.
"While the rate of price growth has slowed in the past couple of months, the underlying market fundamentals remain strong," she said.
"This includes strong population growth, with WA recording 2.8 per cent growth in the year to June 2024, low unemployment and a strong economy.
"While some of the urgency seen in 2024 has eased slightly, demand for established housing remains high, with properties still selling quickly.
"However, rising prices mean affordability is likely to become a greater focus for buyers in 2025 and demand will remain strong for affordable suburbs and properties.
"Demand for units, which are generally more affordable entry points to the market than houses, is also likely to remain strong."
Perth rental market
The Perth rental market eased in 2024, following changes to supply and demand.
"After several years of strong growth, rent prices experienced periods of stability in 2024," Ms Hart said.
"The vacancy rate rose from the record low of 0.4 per cent recorded in March, settling at 1.9 per cent at the end of the year.
"This is a result of changes to supply and demand.
"On the demand side, people adjusted to rising rent prices and the difficulty finding a property by seeking cheaper and smaller rentals. We also saw an increase in the number of tenants per household. People also remained in or returned to the family home, or bought a home, to avoid the challenges of renting.
"We also saw new supply come to the market as a result of completed investor-owned new builds. In addition, some tenants finally had their new homes completed and moved out of their rental, which freed up some existing supply."
While the market eased over 2024, rent prices still set new records.
The median dwelling rent hit a new high of $650 per week in April, but remained stable for the remainder of the year. It was 8.3 per cent higher than at the end of 2023.
The median weekly house rent was at a record $670 at the end of 2024. This was 3.1 per cent higher than at the end of the September quarter and 8.1 per cent higher year-on-year.
The median weekly unit rent price also reached a new high by the end of the year. It rose 14.0 per cent over 2024 to $650. This was 8.3 per cent higher than at the end of the September quarter.
Ms Hart said more rent price growth was likely in 2025, but the growth rate was expected to be lower than 2024.
"In the Perth rental market, we are likely to see more periods of rent price stability," she said.
"We expect the pressure in the rental market to continue to ease as more investor-owned new builds currently under construction are completed. However, with Eastern States investor activity declining, we are not expecting a surge in new supply towards the latter part of the year.
"With the changes seen in 2024, the vacancy rate is likely to continue its upward trend and we should reach a more balanced market sometime in 2025.
"The greatest demand for rental properties is likely to be for homes closer to the CBD, lifestyle hubs and key transport infrastructure. Areas on the outskirts of Perth, particularly where there is a lot of new supply, may see rent price growth soften."
Regional WA
Median house sale price growth will vary across the regions, with the strongest growth likely to be in the southern centres.
Local employment opportunities, population growth and new supply will continue to play a key role in shaping market activity in regional centres.
"Bunbury was the top performer in 2025, with a 27.3 per cent increase in its median house price," Ms Hart said.
"A number of factors drove price growth in the area. Bunbury has good employment opportunities, while improving medical facilities and schools have helped retain people who move there, making it far less transient.
"The Busselton airport has been a game changer. It means people no longer have to live where they work, and many FIFO families have moved to Bunbury to enjoy a South West lifestyle. It is also very affordable, particularly when compared with nearby Busselton and Dunsborough.
"These drivers are likely to continue into 2025, and the Bunbury regional centre could see 10 to 15 per cent growth."
Albany and Geraldton regional centres may also see growth of 10 to 15 per cent over the year. Broome, Busselton and Esperance have the potential for five to 10 per cent growth.
"Every market is different, with different conditions," Ms Hart said.
"For example, Broome can be very seasonal and median prices fluctuate over the year. Busselton saw very strong growth in 2024, but its median house sale price is currently $860,000. It may reach an affordability ceiling over 2025 – our members report potential buyers are already looking to neighbouring areas, like Bunbury, for more affordable housing options."
Kalgoorlie, Karratha and Port Hedland are likely to record less growth, possibly up to five per cent.
Rent price growth will also vary across the regional centres this year.
"Towards the end of 2024, some regional rental markets showed signs of easing. Others have the potential for more growth and, as with Perth, the rate of growth is likely to slow over 2025," Ms Hart said.
"The regional centres likely to see the most growth are Albany, Busselton, Esperance and Geraldton. Stability and declines are possible in Karratha and Port Hedland.
"As conditions vary across WA, my advice is to speak to local REIWA agents to get an on-the-ground update of market activity."
