Perth property hits new highs as prices surge, listings dry up and affordability tightens
Perth closed 2025 with record prices, collapsing supply and intensifying competition, pushing the city into Australia’s million-dollar club and reshaping buyer, renter and investor behaviour heading into 2026.
Perth’s property market closed 2025 in emphatic fashion, with record prices, rapid sales and historically low listings underscoring one of the strongest growth cycles the city has experienced in decades.
According to REIWA data, Perth’s median house sale price reached a record $840,000 by December, while the median unit price climbed to $590,000. Both figures marked the highest levels on record, capping a year of double-digit growth across most market segments.
REIWA President Suzanne Brown said price growth remained robust throughout 2025, with affordability pressures increasingly pushing buyers toward the unit market.
“As houses have become less affordable, more people have looked to the unit market, which includes villas, townhouses, home units, flats and apartments,” Ms Brown said.
“These are generally more affordable options, particularly for first home buyers and people wanting to live close to the city and popular lifestyle areas.”
Top 10 suburbs for median sale price growth (houses)
| Suburb | Annual median sale price | Annual change in price | Annual median selling days | |
|---|---|---|---|---|
| 1 | Viveash | $810,000 | 35.0% | 16 |
| 2 | Woodlands | $1,900,000 | 31.9% | 9 |
| 3 | Bellevue | $730,000 | 28.4% | 12 |
| 4 | Melville | $1,525,000 | 26.0% | 11 |
| 5 | Lesmurdie | $1,100,000 | 23.8% | 12 |
| 6 | Alfred Cove | $1,576,500 | 23.6% | 9 |
| 7 | Spearwood | $928,500 | 23.0% | 10 |
| 8 | Mosman Park | $2,630,000 | 22.6% | 21 |
| 9 | Mount Nasura | $782,000 | 22.2% | 13 |
| 10 | Stoneville | $935,000 | 22.1% | 11 |
Source: REIWA. Filtered for houses <1HA with 28 or more sales in 2024 and 2025.
The shift in buyer behaviour saw unit prices outperform houses over the year. REIWA data shows the median unit sale price rose 18.0 per cent in 2025, compared to 12.0 per cent growth for houses.
That trend was reflected at a suburb level. Viveash recorded the strongest house price growth over the year, with its median rising 35.0 per cent to $810,000. In the unit market, Jolimont topped the list, with median prices surging 51.6 per cent to $940,000.
Low listings push prices higher
Momentum also accelerated late in the year as supply tightened sharply. Active listings across Perth fell to just 1,881 properties by the end of December, a figure 57.2 per cent lower than December 2024 and the lowest level on record.
Ms Brown said while a seasonal slowdown in listings was typical at that time of year, the drop was amplified by an extended period of below-average new listings combined with persistently strong demand.
“New listings have been significantly below long-term averages in the last six months,” she said.
“By comparison, demand remained extremely high. We saw FOMO return to the market, with strong competition for homes, offers well over the asking price in many cases, and homes selling in record timeframes.”
Top 10 suburbs for median sale price growth (units)
| Suburb | Annual median sale price | Annual change in price | Annual median selling days | |
|---|---|---|---|---|
| 1 | Jolimont | $940,000 | 51.6% | 19 |
| 2 | Applecross | $1,085,000 | 43.7% | 21 |
| 3 | Hamilton Hill | $617,500 | 42.6% | 8 |
| 4 | Mount Pleasant | $1,200,000 | 42.0% | 35 |
| 5 | Bayswater | $525,000 | 32.9% | 10 |
| 6 | Belmont | $550,000 | 30.2% | 12 |
| 7 | Inglewood | $556,000 | 30.1% | 8 |
| 8 | Mount Lawley | $600,000 | 29.7% | 8 |
| 9 | Leederville | $775,000 | 27.1% | 8 |
| 10 | Bicton | $760,000 | 26.7% | 9 |
Source: REIWA. Filtered for units with 28 or more sales in 2024 and 2025.
As a result, selling conditions tightened markedly. Houses and units were both selling in a median of nine days in December, seven days faster than a year earlier. Earlier in the year, selling times had hovered closer to two weeks before accelerating in the second half as listings declined.
The speed of transactions was mirrored in individual suburbs, with Stratton emerging as the fastest-selling suburb for houses over 2025, while Yokine led the unit market. In December alone, Parkwood recorded a median selling time of just three days for houses.
Perth’s strong performance has also seen it cross a symbolic milestone. Domain’s December Quarter House Price Report confirmed the city had entered Australia’s “million dollar club”, with the median house price rising 9.9 per cent over the quarter to $1,087,762.
Perth became the sixth capital city to reach the benchmark, following Adelaide earlier in 2025.
Domain President Jason Pellegrino said the milestone highlighted the scale of change underway in the market.
“The city’s strong appeal as a place to live, work and invest, combined with the state’s economic strength and liveability, has attracted new residents at record pace, making Western Australia the nation’s fastest-growing state,” he said.
The milestone has also sharpened affordability pressures. Domain data shows entry-level house prices in Perth have risen 74.3 per cent since 2019, adding approximately $275,000 to the cost of buying.
Perth households are now spending 39.5 per cent of their income on a median mortgage, up from 22.3 per cent six years ago.
New land prices are also at record highs.
Perth rents still rising
In the rental market, conditions remained tight but showed signs of stabilisation. Perth’s median dwelling rent held steady at $700 per week through December, ending the year 4.5 per cent higher for houses and 4.6 per cent higher for units, a marked slowdown from the double-digit growth recorded in 2024.
“We are not out of the woods yet in the rental market, but the periods of price stability we’ve seen over the past year and the lower rate of annual growth are encouraging,” Ms Brown said.
The vacancy rate remained at or above 2 per cent throughout 2025, although conditions varied significantly by location. Inner-city suburbs continued to experience intense competition, while outer suburbs with new supply offered greater choice and more competitive pricing.
Despite easing rental growth, Perth continued to deliver attractive yields for investors. REIWA data shows the top 10 suburbs for house rental yields all exceeded 5.0 per cent, while the top 10 unit suburbs achieved yields above 6.5 per cent. Cannington retained its position as the top house yield suburb at 5.3 per cent, while Spearwood again led the unit market with a yield of 7.3 per cent.
Ms Brown cautioned that yields varied by property and strategy.
“Investors should do their research into potential investments based on their own goals,” she said. “They should also speak to local property managers about the level of demand, the type of property that is popular with tenants, and the potential rental income.”
With listings constrained, demand elevated and affordability pressures reshaping buyer behaviour, Perth enters 2026 as a market still defined by imbalance, one where competition remains fierce, price growth has broadened beyond houses, and supply remains the critical limiting factor.
