Perth’s Resilient Real Estate Market: A Look Ahead to 2025

Despite broader economic challenges, Perth’s real estate market continues to thrive, offering great opportunities for buyers, sellers, and investors alike. As we close out 2024, the market has demonstrated impressive resilience, with strong buyer optimism and low property availability driving prices higher consistently over the past 16 months. Perth's home values increased by 2% in June 2024, outpacing most other Australian cities.

This growth can largely be attributed to the ongoing supply crunch, with property availability sitting at 40% below the five-year average. Demand remains strong, particularly for family homes in established suburbs, as interstate investors and first-home buyers look to Perth's relative affordability compared to Sydney and Melbourne.

Predictions for 2025

Looking ahead, Perth's property market is expected to remain robust. Here’s what to anticipate:

• Sustained Price Growth: Low supply and high demand will likely continue pushing property prices upward, although growth may moderate as affordability pressures rise.
• Investor Activity: Perth’s strong rental yields and increasing interstate migration are expected to attract more investors. Suburbs offering lifestyle amenities and proximity to transport links will remain in high demand.
• Interest Rate Impacts: With the Reserve Bank keeping a close eye on inflation, potential interest rate hikes could temper buyer activity. However, any slowdown in demand is expected to be offset by ongoing supply shortages.
• Regional Opportunities: Areas like Kalbarri and other regional hubs may see increased interest from buyers seeking lifestyle properties or affordable investments outside the metro area.

Perth’s growth is poised to continue through 2025, making it an opportune time for buyers, sellers, and investors alike to capitalise on the momentum. For expert guidance on navigating the Perth property market or to get a free property appraisal, contact our team today.

Paulette Contessi 

Director / Licensee

CONTESSI PROPERTIES