Why Perth's investment market is hitting new heights in 2025

Perth has been romping forward in terms of price growth and rents, but in an economy traditionally seen as boom or bust, is investing in its real estate a wobbly option? Many argue it’s not.

“Previously, we relied on the mining industry but while it’s still a massive part of our GDP, we now have a lot of other industries as well,” says Peter Gavalas, a Perth buyer’s agent with Resolve Property Solutions.

“Health has taken off to be a very big growth area, while agriculture and our fishing industry are growing too.

“The Perth economy is a lot more stable than it used to be, and the continuing shortage of stock and population increases are keeping prices up and yields high.”

The raw figures bear out the startling story of Perth’s power punch.

House prices have risen 14.1 per cent over the last 12 months, according to Domain data, to a median of $917,706. Unit prices have also jumped 19.1 per cent to $508,367.

Meanwhile, house rents are up 6.2 per cent on the year to $650 a week, and unit rents 9.1 per cent to $550.

Real Estate Industry of Western Australia president Suzanne Brown has a property management business of her own. She says continued price growth is likely off the back of migration from the east coast, and internationally: particularly India, the Middle East and China.

“We have a wonderful lifestyle, lots of jobs and beautiful beaches,” she says.

“Since we were given that ‘boom or bust’ tag, the government has been working hard to diversify the economy.

“We now have so much construction and infrastructure happening. For investors, we have great yields, low vacancy rates, strong rent and rising prices.

“We think the market will continue to rise, even with population growth easing slightly, as there are just so many work opportunities.”

But there’s a word of caution from Property Investment Professionals of Australia board member Matthew Hughes, of Capital Property Advisory.

He says that, while he’s generally bullish about Perth property in the long term, investors should take care to pick the right locations.

Hughes tips the northern coastal corridor, as well as Morley, Bayswater and Bassendean, as promising potentially good returns.

He also says the medium to high price points represent the best buys, with the lower price points having already undergone massive growth from a low starting base.

“If you’re looking less than $750,000, I’d tip Melbourne for better growth,” Hughes says.

“But if you’re looking in the middle range, $800,000 to $2 million, then I’d say those are good prospects in Perth, and growth in that part of the market will probably trigger growth in the luxury $2 million-plus market, too.”

Gavalas says a shortage of properties will still underpin capital growth and excellent yields as rents rise.

“That’s especially for good properties in the right areas, which now often receive more than one offer as they’re so popular,” he says. “They can be very, very hot.”