Perth property market heats up with 13.9% sales surge

Perth’s Property Market Is On Fire Right Now, But Why?

If you’ve been watching the Australian property market closely, you’ve probably noticed the noise coming out of Perth.
And the numbers back it up:

• Sales Transactions: 887 sales in the week ending Sept 21, 2025 – a 13.9% increase.
• Median House Price: $869,689 (up 6% year-on-year).
• Rental Market: Vacancy rates at 1.9% – the tightest in Australia.
• Population Growth: WA leading the nation at +2.3% growth.

Translation: Demand is rising fast. Supply isn’t keeping up. That imbalance is pushing prices and rents higher, creating urgency for buyers and opportunity for investors.

Why Migrants Are Choosing Perth Over Sydney & Melbourne

Traditionally, Sydney and Melbourne have been the migration magnets. But 2025 is rewriting the script.

Here’s why WA is stealing the spotlight:

• Jobs, Jobs, Jobs – Mining may still matter, but WA has diversified into healthcare, construction, and tech.
• Lifestyle Without the Price Tag – Beaches, climate, and culture, but without $1.3M+ Sydney median prices.
• Government Support – Grants like the $10K Construction Visa Subsidy Program make relocation financially attractive.
• Affordability Advantage – Perth’s median house price sits at $869K vs. Sydney’s $1.3M.

Smart migrant strategy: Buy within your first two years in Perth. You’ll capture capital growth + rental yield benefits before rising costs lock you out.

First-Home Buyers: The Cost of Waiting

Perth is still more affordable than Brisbane or Sydney, but that doesn’t mean it’s cheap anymore.

Here’s the first-home buyer reality check:

• Median House Price: $869,689.
• Median Unit Price: $615,528 (+10.4% YOY).
• Government Help: First Home Owner Grant & stamp duty concessions still active – but not guaranteed long-term.

Now, here’s the kicker:

• Every month of delay costs $3K–$5K in higher purchase price.
• Combine that with rising rent, and waiting = wealth erosion.

First-Home Buyer Tips:

• Target growth corridors within 15km of the CBD with infrastructure projects.
• Explore house-and-land packages in emerging areas.
• Get finance pre-approval so you can strike fast.
• Use a buyer’s agent to dodge bidding wars and access off-market deals.

Investors: Why Perth is Delivering the Rare Double Play

For most Australian markets, you choose between capital growth or yield. Perth is offering both.

Here’s the investor math:

• Rental Yields: ~5.4% in established suburbs; some hitting 6%+.
• Capital Growth: +6% year-on-year; select postcodes seeing double-digit jumps.
• Bank Forecasts: Westpac +4%, NAB +4.7%, ANZ +6.1% growth for 2025.

Investor Strategies That Work in Perth:

• Geographic Diversification – East-coast investors can balance portfolios with WA’s growth market.
• SMSF Purchases – Leverage tax benefits for long-term holds.
• Development Plays – Subdivision or dual-living properties with multiple exit strategies.
• Renovation Value-Adds – Upgrade tired stock in high-demand rental suburbs.

Perth Supply Crisis: Why Listings Stay Tight

The biggest problem is also its biggest opportunity: there just aren’t enough homes.

• Listings: 30–40% below long-term averages.
• Vendor Discounts: Just 2.9% – sellers aren’t budging.
• New Listings: Up 12.7%, but snapped up fast.

Why supply won’t recover quickly:

• Land release & approvals are slow.
• Construction labour shortages continue.
• Infrastructure bottlenecks limit development.
• Owners don’t want to sell in a rising market.

For buyers, this means competition is here to stay. The best properties won’t sit long.

Risks You Can’t Ignore

Even in a booming market, risks exist. Here are biggest ones:

• Bidding Wars – Buyers overpaying in hot suburbs.
• Economic Dependency – WA still exposed to mining cycles.
• Interest Rates – Higher repayments squeeze affordability.
• Policy Shifts – Government incentives and migration programs may change.

Risk Management Checklist:

• Always stress test your finance for rate hikes.
• Do comprehensive due diligence (building, pest, zoning).
• Diversify across markets, property types, and states.
• Engage local experts – this market rewards insider knowledge.

Why Late 2025 is a Turning Point

Put it all together, and here’s the big picture:

• Sales up 13.9% in one week.
• Population growth at 2.3% – fastest in Australia.
• Rental vacancy at 1.9% – national tightest.
• Median house price forecast to hit $856K–$870K by year-end.

This is not hype. It’s raw supply and demand economics.

Action Plan: What You Should Do Next

Migrants: Buy early to secure both affordability and growth.
First-Home Buyers: Stop waiting. Government grants + lower entry points won’t last.
Investors: A rare chance to lock in both yield and growth.

Final Word

Perth’s property surge is not a temporary blip. It’s a structural trend backed by migration, economic growth, and critical supply shortages.

The window is narrowing. Each month adds cost. Those who act decisively in late 2025 will capture the strongest gains.

Ready to buy in Perth? We help migrants, first-home buyers, and investors secure properties that deliver real results.

Book your free strategy session today – spots are limited to 50 serious clients each quarter. Don’t let this Perth opportunity pass you by.

Disclaimer: This article provides general market insights only and is not financial advice. Always seek independent advice before making investment decisions.

Data Sources: REIWA, CoreLogic Australia, ABS, Domain, and major bank forecasts (Westpac, NAB, ANZ).

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