Perth property prices are on track to grow by 10 per cent in 2025, according to REIWA's 2025 property market quarterly update.
REIWA President Suzanne Brown said house prices were currently trending towards 10 per cent growth, while unit prices were trending above 10 per cent, however there were a couple of factors that could affect price growth.
"The most significant issue facing the property market at the moment is the Trump tariffs. They have the potential to create a recession in the United States and impact economies around the world, particularly some of our most significant trading partners," she said.
"Western Australia's economy is in a strong position and we have relatively low direct exposure to the US market with our exports. However, the potential effect of the tariffs will create concern among the community, particularly in relation to employment security, and this in turn affects buying and selling behaviour.
"Compounding this is the recent pause on tariffs and the potential for trade wars. Such economic volatility often sees people become more cautious.
"On the other hand, we have been expecting several interest rate cuts this year and the tariffs and potential for an economic slowdown may bring these forward.
"Under normal circumstances this would boost consumer confidence, increase borrowing power and put some upward pressure on prices, but if economic uncertainty remains high we expect the effect on property prices to be fairly low.
"We won't see the full impact of these two factors for some time. We will continue to watch the market and economy and update our forecast accordingly."
Perth's median house sale price recorded preliminary growth of 2.7 per cent in the March 2025 quarter, with the median house sale price rising from $750,000 at the end of 2024 to $770,000.
The median unit price increased 4.0 per cent to $520,000 over the same period, up from $500,000.
Perth's house and unit median sale price are both at record highs.
Ms Brown said while moderate price growth was forecast for Greater Perth, conditions would vary from suburb to suburb.
"The frenzied buyer behaviour that characterised most of 2024 has eased," she said.
"Our members report buyers are more discerning and taking more time in their purchasing decisions. They are also being more prudent with their spending, and this is likely to continue while the economic climate remains uncertain," she said.
"Sellers should not expect their home to sell at the first home open or to achieve the sensational price outcomes seen last year.
"While that may still occur in some cases, we are seeing properties take longer to sell, price growth slow and, in some suburbs, sellers are having to discount their original asking price to achieve a sale.
"If you are selling now, it is important to speak to your REIWA agent about market conditions in your area and to price and present your property to meet the market."
Perth rental market
Perth's median weekly house rent price increased 3.0 per cent in the March 2025 quarter to $690, while the median unit price was unchanged at $650.
Ms Brown said more growth was likely over 2025 but it was expected to be at a lower rate than 2024, with extended periods of price stability.
"There were significant changes to conditions in the rental market over the past 12 months," she said.
"Slowing population growth has seen demand ease slightly. In addition, demand self-moderated over 2024, with an increase in the size of tenant households as people sought to share the cost burden of renting. People have also chosen not to rent if possible, either by purchasing a home or remaining in, or returning to, the family home.
"There has also been an increase in new supply, particularly in outerlying suburbs where investor-owned new builds have been completed.
"As a result, we've seen the pressure on rent prices ease and the vacancy rate increase."
Ms Brown said despite the changes, challenges remained in the rental market.
"While we are seeing an easing of rent price growth in general and more rental opportunities for tenants, conditions vary significantly from suburb to suburb and the increased opportunities may not necessarily be in areas that tenants want to live," she said.
"There are some suburbs, such as those closer to the CBD or key lifestyle attractions, where competition for rental properties remains high, the vacancy rate is low and rent prices are recording moderate growth.
"There has been a more significant change to conditions in suburbs further from the CBD, particularly where a lot of investor-owned new builds have come to the market. Here supply can outweigh demand, the vacancy rate is higher, homes can take longer to rent and investors may have to lower their asking price to secure a tenant."
Regional WA
Median house sale price growth is forecast across the majority of regional centres.
"Based on current conditions, Albany, Busselton and Geraldton are likely to be the top performers this year, with median house sale price growth in the range of 15 to 20 per cent," Ms Brown said.
"Bunbury and Karratha are looking to achieve around 10 per cent growth, while growth in Kalgoorlie and Broome is predicted to be between 2 and 5 per cent.
"Growth is likely to be very low in Esperance, while the Port Hedland regional centre could see median house prices decline."
Local employment opportunities, population growth and limited new supply will continue to play a key role in shaping market activity in regional centres.
"Every regional market is different, with different drivers," Ms Brown said.
"For example, the Regional Movers Index named Albany as the fastest growing local government area in the state for net internal migration, and the increase in population growth is maintaining upward pressure on property prices.
"Bunbury remains attractively priced for people seeking a more affordable sea change in the South West. In Geraldton FOMO remains strong, with the cost of building continuing to drive people to the established homes market. There is also a lot of investor activity in that region."
Rent price growth will also vary across the regional centres.
"As with Perth, the rate of growth is likely to slow over the remainder of the year," Ms Brown said.
"Many of the regional centres are on track to record rent price growth up to 5 per cent. Lower growth, or price stability, is likely in Bunbury and Karratha, while a decrease in the median rent price is possible in Port Hedland.
"As conditions vary across WA, and within the many suburbs in each regional centre, my advice is to speak to local REIWA property managers to get an on-the-ground update of market activity if you're looking to buy, sell, invest or rent."
