- 24 Jan 2025
- By API Magazine
Perth’s property market swept all before it in 2024 but market commentators are divided on its prospects for continued capital growth in the year ahead.
After another year of capital growth for the Perth market that rivalled the great boom period of 2006-07, all eyes are on where the Western Australian capital’s real estate market will head in 2025.
While Australia’s median property price dipped in December for the first time in two years, led by falls in Sydney and Melbourne, Perth’s market climbed another 0.7 per cent.
REIWA CEO Cath Hart on Thursday (23 January) said properties continued to sell quickly during 2024, with median sale prices for houses and units at record highs at the end of the year.
“Houses sold in a median of nine days for most of the year, although this increased towards the end of the year as more listings came to market in October and November.”
Mid-priced houses lagged behind expensive and cheaper suburbs when it came to the fastest growing median house prices in 2024, according to new REIWA data.
Top 10 suburbs for median price growth (houses)
| SUBURB | ANNUAL HOUSE SALE PRICE | CHANGE IN ANNUAL HOUSE PRICE | MEDIAN SELLING DAYS | |
|---|---|---|---|---|
| 1 | Marmion | $2,170,000 | 55.3% | 16 |
| 2 | Medina | $525,000 | 45.8% | 7 |
| 3 | Armadale | $545,000 | 42.7% | 9 |
| 4 | Hillman | $609,750 | 41.8% | 8 |
| 5 | Calista | $566,000 | 41.5% | 9 |
| 6 | Riverton | $1,076,000 | 39.7% | 12 |
| 7 | Ardross | $1,544,000 | 39.6% | 13 |
| 8 | Shoalwater | $815,000 | 39.3% | 15 |
| 9 | Shelley | $1,621,500 | 39.2% | 13 |
| 10 | Camillo | $570,000 | 39.0% | 8 |
Source: REIWA. Filtered for houses <1HA with 28 or more sales in 2023 and 2024.
“In 2023 eight of the top performers for house price growth were below the Perth median, last year it was five, which reflects the strong demand across all sectors of the market,” Ms Hart said.
“It also highlights the overall resilience of our market, which has been supported by population growth, a strong economy and low unemployment.”
With the exception of second-placed Cottesloe, all suburbs among the top 10 performers for units in 2024 were in relatively affordable suburbs with a median price below $525,000.
Top 10 suburbs for median price growth (units)
| SUBURB | ANNUAL UNIT SALE PRICE | CHANGE IN ANNUAL UNIT PRICE | MEDIAN SELLING DAYS | |
|---|---|---|---|---|
| 1 | Gosnells | $435,000 | 52.6% | 9 |
| 2 | Cottesloe | $1,201,500 | 46.1% | 20 |
| 3 | Orelia | $302,000 | 45.2% | 7 |
| 4 | Coolbellup | $503,000 | 41.7% | 10 |
| 5 | Bayswater | $393,500 | 40.5% | 9 |
| 6 | Dudley Park | $400,000 | 40.4% | 15 |
| 7 | Armadale | $420,000 | 40.0% | 8 |
| 8 | Girrawheen | $455,500 | 39.0% | 14 |
| 9 | Mandurah | $450,000 | 38.0% | 14 |
| 10 | Bentley | $524,500 | 38.0% | 9 |
Source: REIWA. Filtered for units with 28 or more sales in 2023 and 2024.
For investors or buyers trying to time their entry into the Perth market, the question is whether Perth will maintain this double-digit annual price growth.
Jonathan Preston, Senior Mortgage Broker, Homeloanexperts.com.au does not think so.
“I believe Perth has finished its catch up rally and won’t continue to outperform significantly, going forward, as it’s no longer cheap like it once was.”
“My expectation is that the number of suburbs in the $1 million club will continue to climb in Perth, but the growth rate will moderate and perhaps be more in line with, say, Sydney or Brisbane for the coming few years.”
Four Perth suburbs surpassed the $1 million price bracket over the December quarter, including Inglewood (up 8.1 per cent to $1.05m), Leederville (up 6.4 per cent to $1.03m), Riverton (up 7.1 per cent to $1.05m) and White Gum Valley (up 17.5 per cent to $1.14m).
“Long term, I don’t see why Perth would outperform; it was temporarily undervalued and the gap is closing rapidly,” Mr Preston said.
“Long term, I have us back at prices being highest in Sydney, followed by Melbourne, Brisbane, then Perth.
“In the end, my thesis is that employment is key and Sydney and Melbourne are the main employment hubs for high-paying jobs.”
His mortgage broker colleague Sheng Ye added that international influences may be turning against the Perth market.
“The Chinese economy is in bad shape, I guess the resources sector and the job market will feel the cold. This upward part of the cycle looks to be over soon for Perth.”
“An economy has its cycles and with the Chinese economy in the downturn cycle, WA will be negatively affected.”
Many observers predicted Perth property price growth would slow in 2024 but instead watched on as the city set a new record month after month, reaching $745,000 at the end of the year. This was 24.2 per cent higher than December 2023 and 36.7 per cent higher than the previous record of $545,000 set in 2014.
After slower growth in the past few years, median unit sale price growth also accelerated in 2024. It matched the 2014 record of $450,000 in July and rose to $500,000 by the end of 2024. This was 21.7 per cent higher year-on-year and 11.1 per cent higher than the 2014 record.
Julie Kelley, Global Sales and Marketing Manager for aussieproperty.com, is not dismissing the prospect of double-digit growth again in 2025 across a range of suburban price ranges.
“Perth’s strong growth will continue in 2025 – I believe it will surpass 10 per cent capital growth in the housing market, although I don’t think the unit market will be as strong.
“Perth will not lose its selling advantage – it’s still one of the most affordable capital cities in Australia and offers an unbeatable lifestyle, beautiful weather, great connectivity and proximity to South East Asia.
“The dollar stretches much further in Western Australia, so buyers can expect bigger and better housing compared to the east coast, which should continue to drive interstate investment.”
Ms Kelley said the hotspots to look out for this year included prestige Cottesloe, affluent western suburbs in the so-called Golden Triangle Mount Hawthorn, Subiaco and City Beach, and south of the Swan River to Leeming and the more affordable Atwell and Armadale.
Perth’s eastern corridor hotspots
Perth’s affordable eastern suburbs, with their larger block sizes and infrastructure advances were also worthy of consideration, according to Mike King, founder of Better Way 2 Build, who said price growth in Perth could actually accelerate in 2025.
“We haven’t seen the boom yet, in fact, the commodities sector has slowed and Perth property prices have still gone up and it only takes a slight shift in the commodities sector for prices to take off from here,” Mr King said.
The WA State Government announced the release of hundreds of hectares of residential land in Eglinton and Karnup late last year in a bid to address a chronic land shortage, but Mr King suggests buyers don’t need to go that far to find a good investment.
“There’s a lot of untapped opportunity in the eastern suburbs, where demand for housing is high and the larger block sizes allow for urban infill.
“These conditions present opportunities for group developments for both housing and commercial spaces, particularly because they are near the trainline and Perth Airport.”
He identified the top suburbs for investment in 2025 as Middle Swan, Stratton, Midvale, High Wycombe and Maida Vale.
Article Q&A
Are Perth house prices still rising?
Perth houses set a new record month after month in 2024, reaching $745,000 at the end of the year. This was 24.2 per cent higher than December 2023 and 36.7 per cent higher than the previous record of $545,000 set in 2014.
Are Perth unit prices still rising?
After slower growth in the past few years, median unit sale price growth in Perth also accelerated in 2024. It matched the 2014 record of $450,000 in July and rose to $500,000 by the end of 2024. This was 21.7 per cent higher year-on-year and 11.1 per cent higher than the 2014 record.
Will property prices keep rising in Perth in 2025?
Observers are split on whether Perth real estate will continue is strong capital growth performance in 2025, with its relative affordability, strong economy and lifestyle on its side, but with a potential resources crunch from a slowing China and the recent rapid price hikes being seen as unsustainable weighing heavily on the downside.
