Perth Property Market Update: The Perfect Storm of 2025

Perth’s property market has officially entered a perfect storm.
After a sluggish start to 2025, marked by high interest rates, subdued migration, and a brief rise in listings, conditions have completely reversed.

Now, three consecutive rate cuts, surging migration, and major policy changes are colliding with historically low stock levels, sending prices sharply upward and leaving buyers scrambling for limited opportunities.

Price Growth Accelerates Into Spring

Spring has brought a surge of momentum back into the market.
September saw Perth property prices climb by more than 1.6% in just one month, the strongest rise of the year and the fastest among all Australian capital cities.

If that pace were sustained, Perth would be on track for an annual growth rate of around 20%, well above the national average.

The recent quarter alone has seen roughly $30,000 added to Perth’s median house price, lifting it above $850,000 and signalling that competition among buyers remains fierce.

While affordability pressures could start to slow momentum toward the end of the year, the market’s sheer tightness, combined with ongoing population growth, suggests the rally isn’t over yet.

The Real Issue: A Severe Shortage of Listings

The most striking feature of Perth’s current property cycle is how little stock is available.

Listings have plunged to below 3,000 homes citywide, one of the lowest levels on record. Yet demand remains robust, with more than 800 sales recorded each week.

That imbalance has pushed the sales-to-listings ratio to one of its highest levels in recent years, confirming a strong seller’s market and continuing upward pressure on prices.

Until the number of homes coming to market increases meaningfully, price growth is likely to remain elevated.

Migration and Supply: Demand Keeps Outpacing Construction

On the demand side, migration has returned with force.
The latest ABS data shows net overseas migration to WA surged by nearly 60% in the March quarter alone, a clear sign that population growth is once again adding heat to housing demand.

But the construction pipeline isn’t keeping pace.
While building approvals remain stable, completion rates haven’t risen enough to meaningfully boost supply. This means Perth’s housing shortage is unlikely to ease in the near term, especially as population growth continues to accelerate.

Policy Shifts Adding Fuel to the Fire

Adding to the storm is the Federal Government’s expanded First Home Guarantee Scheme (FHGS), which came into effect on 1 October 2025.

The scheme now allows unlimited places, removes income caps, and raises property price thresholds, enabling buyers to purchase with just a 5% deposit and no Lenders Mortgage Insurance (LMI).

While this will help more Australians enter the market, it also risks adding even more demand pressure to an already supply-starved market.

The Outlook: Perth Still in the Eye of the Storm

With record-low listings, accelerating migration, and new demand-side incentives, Perth’s housing market remains firmly in a state of imbalance.

Whether the storm peaks or intensifies further will depend on how quickly new housing can be delivered, and whether demand from migration and policy remains this strong through summer.

But one thing is clear: Perth’s property story in 2025 is far from over.

Want the full data, charts, and expert analysis?
Download the complete Perth Property Market Report – October 2025 for in-depth insights, forecasts, and data visualisations.

You can also watch our latest Follio Property Podcast episode where we break down this report and what it means for buyers and investors:
Watch the podcast episode.

Disclaimer: This blog provides general information only and does not take into account individual objectives or financial circumstances. Please consider professional advice before making investment decisions.