Perth Economic Update – August 2025

Overview

Perth Property Prices Surge as Listings Hit Record Lows

Perth’s property market continues to defy expectations, with prices rising for the third straight month despite fewer rate cuts and easing rental conditions. The city’s housing shortage remains the defining story of 2025, keeping competition fierce and driving growth well above long-term averages.

Perth’s housing market remains on a strong growth path, with prices climbing another 1.1% in August despite fewer interest rate cuts and easing rental conditions. Record-low listings and steady demand continue to drive competition, pushing the median house price toward $880,000 by year-end – well above the city’s long-term average growth rate.

“Perth’s property market shows no signs of slowing,” says our Chief Economist. “With demand holding firm and listings at historic lows, price growth is likely to continue into Spring and beyond.”

Investor activity is rebounding, first-home buyer incentives are expanding, and rental markets are stabilising, but the chronic undersupply of homes remains the key driver of price growth.