Perth’s 10 best and worst property markets, and what’s hot into 2025
The huge gulf between the best and worst performing suburban property markets in Perth provides buyers with crucial insights into where to invest in the Western Australian capital.
Interstate property investors are cooling on Perth’s still-hot property market but there are few signs the market is becoming a cold case just yet.
The latest monthly increase in median dwelling value of 1.4 per cent does nothing to reveal the complexity of a market where annual property variations differ enormously.
For investors who bought a unit in affluent beachside Cottlesloe one year ago, they have reaped a windfall of 49.9 per cent, while buyers of a house in the working class, family-dominated suburb of Camillo have seen their investment rise by a staggering 45.7 per cent.
But for prospective investors salivating over those eye-watering gains there are cautionary tales that could suppress their appetite.
Apartment-heavy Burswood on the Swan River has seen unit prices collapse by more than 20 per cent, effectively wiping out any gains made over the past five years in just 12 months.
Home buyers in inner suburban Mosman Park, South Perth and Lathlain have also seen their median property values go backwards, although not at the pace anywhere near Burswood units.
Top 10 suburbs for unit sale price growth |
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| RANK | SUBURB | ANNUAL UNIT SALE PRICE (OCT 2024) | ANNUAL PRICE GROWTH (OCT 2024) | 5-YEAR PRICE GROWTH (OCT 2024) | MEDIAN SELLING DAYS (AUG-OCT 2024) |
|---|---|---|---|---|---|
| 1 | Cottesloe | $1,203,000 | 49.9% | 44.9% | 7 |
| 2 | Gosnells | $417,500 | 49.1% | 106.2% | 10 |
| 3 | Bayswater | $380,000 | 41.8% | 59.0% | 18 |
| 4 | Armadale | $400,000 | 40.4% | 159.7% | 13 |
| 5 | Orelia | $287,500 | 40.2% | 139.6% | 9 |
| 6 | Girrawheen | $445,000 | 38.6% | 139.1% | 11 |
| 7 | Shoalwater | $355,000 | 36.2% | 42.0% | 12 |
| 8 | Mount Hawthorn | $655,000 | 32.3% | 31.0% | 11 |
| 9 | Balcatta | $552,500 | 31.5% | 69.0% | 10 |
| 10 | Mandurah | $425,000 | 30.6% | 47.8% | 13 |
Bottom 10 suburbs for unit sale price growth |
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| 1 | Burswood | $520,000 | -20.9% | -20.0% | 20 |
| 2 | West Leederville | $455,500 | -8.8% | 0.8% | 8 |
| 3 | Crawley | $706,250 | -7.7% | -14.4% | 29 |
| 4 | Jolimont | $514,000 | 2.8% | 3.8% | 9 |
| 5 | Floreat | $810,000 | 4.0% | 33.3% | 36 |
| 6 | Erskine | $457,500 | 5.2% | 59.9% | 20 |
| 7 | Hamilton Hill | $384,850 | 5.4% | 57.1% | 10 |
| 8 | Nedlands | $740,500 | 5.8% | 34.6% | 24 |
| 9 | Fremantle | $556,000 | 5.9% | -0.1% | 9 |
| 10 | East Fremantle | $567,000 | 7.0% | 17.9% | 9 |
Source: REIWA. Filtered for suburbs with a minimum 28 unit sales in the year to October 2024 and year to October 2023, as at 4 November 2024.
REIWA CEO Cath Hart said the strongest growth has been in the more affordable suburbs, and that these areas remain worth watching, with houses performing particularly well.
“Houses remain more popular than units for both owner occupiers and tenants.
“People prefer to live or rent close to the CBD, so villas, townhouses and units in close proximity to the city may also be good options for growth.”
In the midst of the spring selling season new listings have increased significantly, which has taken some of the urgency out of the market.
“Buyers are starting to take a bit more time in their purchasing decisions, as evidenced by the slightly longer days on market, however, members report the Perth market remains competitive and that they continue to receive multiple offers on properties in most cases,” Ms Hart said.
Top 10 suburbs for house sale price growth |
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| RANK | SUBURB | ANNUAL HOUSE SALE PRICE (OCT 2024) | ANNUAL PRICE GROWTH (OCT 2024) | 5-YEAR PRICE GROWTH (OCT 2024) | MEDIAN SELLING DAYS (AUG-OCT 2024) |
|---|---|---|---|---|---|
| 1 | Camillo | $550,000 | 45.7% | 150.0% | 10 |
| 2 | Armadale | $520,000 | 44.4% | 144.7% | 9 |
| 3 | Hillman | $600,000 | 44.2% | 151.3% | 15 |
| 4 | Bellevue | $560,000 | 42.7% | 87.5% | 6 |
| 5 | Maddington | $597,000 | 41.1% | 105.9% | 13 |
| 6 | Riverton | $1,050,000 | 40.0% | 72.1% | 16 |
| 7 | Medina | $492,000 | 39.0% | 158.4% | 8 |
| 8 | Coodanup | $555,000 | 38.8% | 138.7% | 14 |
| 9 | Lockridge | $576,000 | 38.5% | 133.2% | 6 |
| 10 | East Cannington | $680,000 | 37.4% | 54.5% | 9 |
Bottom 10 suburbs for house sale price growth |
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| 1 | Mosman Park | $1,985,000 | -7.7% | 49.9% | 15 |
| 2 | South Perth | $1,760,000 | -6.1% | 31.8% | 20 |
| 3 | Lathlain | $976,000 | -1.7% | 51.9% | 20 |
| 4 | Claremont | $2,050,000 | 0.5% | 53.0% | 10 |
| 5 | Wembley Downs | $1,550,000 | 3.9% | 40.9% | 8 |
| 6 | Dalkeith | $3,450,000 | 4.5% | 51.3% | 28 |
| 7 | Cottesloe | $3,500,000 | 6.1% | 73.9% | 21 |
| 8 | Bicton | $1,387,500 | 6.7% | 54.2% | 14 |
| 9 | Kensington | $1,257,500 | 6.8% | 36.1% | 11 |
| 10 | Mount Claremont | $1,942,500 | 7.9% | 59.1% | 10 |
Source: REIWA. Filtered for suburbs with a minimum 28 house sales <1HA in the year to October 2024 and year to October 2023, as at 4 November 2024.
Interstate investors looking away
Interstate property investors are increasingly looking elsewhere as they sense the Perth property market is nearing its peak and has in the past experienced lengthy periods of inactivity after strong bursts of growth.
API Magazine’s recently released property sentiment report has shown that Victoria’s dormant real estate market’s apparent affordability has lured investors from Western Australia when it comes to what they regard as having the best investment prospects for the coming 12 months. WA was regarded most favourably by more than 20 per cent of survey respondents just three months ago, a figure that has since plummeted to just 13 per cent.
Glenn Biggins, Mortgage Broker, Focus Property Wealth, said interest from eastern states buyers as well as buyers agents had drastically reduced in recent months, coinciding with Perth’s median value exceeding Melbourne’s.
“Although there still seems to be interest from the east, the affordability of Perth is not as prominent as it was one or two years ago, when values were considerably less.
“At any home open now there are fewer potential buyers walking around with mobile phones on video mode, as they present the property to eastern state purchasers looking to snap up a Perth property bargain.
“Perhaps Sydney investors are still looking to Perth, however, it does seem they are also looking elsewhere now.”
Julie Kelley, Global Sales and Marketing Manager for aussieproperty.com, said the peak of interstate investor buyer activity had passed.
“The momentum has slowed down rapidly.
“The interest now appears to be boutique Sydney developers seeking R60-zoned land in the outer suburbs of Perth for NRAS (National Rental Affordability Scheme) and NDIS (National Disability Insurance Scheme) housing developments.”
Alternative investment vehicles were also the focus of interstate investors according to Barry Pound, Licensee and Senior Buyers Agent at Beagl.
“Interstate investors are still active in Perth, although the hype and rush that we saw at the market’s peak have tapered off,” Mr Pound told API Magazine.
“Investors from Sydney, Melbourne and Brisbane are using the equity in their homes to seek better returns in Perth or are SMSF (self-managed superannuation fund) investors looking to diversify with positively geared property.
“The relative affordability of Perth’s property market, combined with the city’s strong economic fundamentals, does continue to appeal to those looking to diversify their portfolios and secure strong rental yields.”
Perth’s hotspot suburbs for 2025
Perth’s property market has been the standout nationally and despite slowing slightly, continues its impressive run. The median house price is up 24.1 per cent for the year to $797,184, surpassing Melbourne’s $777,390.
This places Perth as the fourth most expensive capital city, behind Sydney, Canberra, and Adelaide, however, while the market remains robust, some initial signs of a softening trend are emerging.
Quarterly growth eased to 4.1 per cent, down from 6.2 per cent the previous quarter, with monthly growth at 1.4 per cent. This deceleration is partly attributed to a slight increase in spring stock levels and the decrease in investment enquiries from eastern states’ buyers.
But there are definite hotspot targets that promise strong capital growth and returns in 2025.
While it is the cheaper outer suburbs that have fuelled most of the city’s stellar price growth, Ms Kelley said a change was imminent.
“Inner city and middle ring suburbs are performing strongly, with the western suburbs of Perth now in high demand.
“Suburbs in the Golden Triangle are primed for performance, as well as the western coastal corridor suburbs.
“I expect suburbs like Leeming in Perth’s south to outperform the market due to its rapidly developing and established infrastructure, large blocks, relative value for money, and popularity among family buyers.”
In many affordable outlying areas growth has been in excess of 30 per cent per year as these suburbs have caught up with the general market after years of underperformance.
Mr Biggins said these suburbs are at risk of overshooting and values could be under pressure when supply increases and demand reduces.
“The best type of property can depend on the suburb or location, with a villa or townhouse often offering a better balance of value to cashflow in an area of higher density with a lower entry cost.
“A good example might be Belmont, where villa values have lagged house values in a suburb that has a large number of small villa complexes in close proximity to the airport and Perth city.”
Investing in well-located, unique properties within established or emerging communities was a solid strategy for achieving both capital growth and strong rental returns, according to Mr Pound.
“It’s worth avoiding cookie-cutter investments, properties that lack uniqueness or competitive appeal, that are often in newer suburbs on the outskirts of Perth with limitations when it comes to public transport options, access to essential amenities and infrastructure.
“Instead, focus on areas with strong fundamentals, established or approved future infrastructure projects and long-term growth potential.”
He said suburbs located west of the freeway closer to the coast, both north and south of the Swan River divide, are consistently popular and likely to perform well.
“Additionally, the areas surrounding Rockingham and Kwinana Beach present significant opportunities, with the anticipated growth driven by the AUKUS submarine agreement, set to deliver benefits from increasing infrastructure investment and employment opportunities.
“Their excellent transport links and proximity to essential amenities further enhance their appeal.”
Is Perth property in for a hard landing?
The adage that investments take the escalator up and the lift down is one that many fear could transpire in Perth.
A recent No Go Zones report that analysed nearly 15,000 suburbs identified 111 it declared to be “no go zones” for buyers. Perth accounted for the most suburbs on the list at 27, including five in the Mandurah precinct.
But if and when the market retracts, most are still expecting it to be via the stairs and not out the window.
The latest CommSec State of the States report saw WA reclaim top spot as the country’s best-performing economy, with particular strength shown in population growth, employment and retail spending.
“Signs of the property market easing are starting to emerge, with a slight dip in sales activity and an increase in the number of listings,” Mr Pound said.
“Perth’s strong growth phase can be attributed to what we often refer to as ‘The Long Bottom’, a prolonged period of flat or negligible growth that created pent-up demand and a catch-up phase, driving significant capital growth in a short time.
“Now, we’re transitioning into a more balanced phase, which I’d describe as a return to normal pricing.
“Experienced agents are adjusting their pricing strategies and educating sellers to reflect this shift and from here we’re likely to see a steadier growth trajectory that’s marginal, manageable and more reflective of traditional market behaviour.”
Current rental stocks have also increased, indicating a trend to return to a more balanced rental market. This is also reflected in the median rental asking price remaining at $650 per week.
Rental affordability in Perth is now the worst in the country, driven by a 3.1 per cent growth in the Western Australian population. The National Shelter-SBS Economics rental affordability index released this week showed that it required 31 per cent of income to service the average Perth rent, narrowly ahead of Sydney and Adelaide.
Mr Biggins said he expected a soft landing, with affordability being stretched and many applicants looking to buy already at their maximum lending capacity.
“As an example, a single applicant on an income of $100,000 per year with ongoing HECS debt and no other personal financial commitments has a maximum loan capacity around $490,000.
“This affordability ceiling is limiting the maximum purchase price of many first home buyers in particular.
“The Home Guarantee Scheme in Perth has now been outpaced by the growth of the last two years; at $600,000 it is more than $200,000 less the than the median value.
“If the RBA was to reduce interest rates in 2025, this would increase borrowing capacity slightly, however, rather than lead to an upward increase in values would more likely contribute to a softer landing for Perth property values at the end of this growth cycle.”
