In the three months to July 31, Perth dwelling values rose 2.6%, edging out Brisbane (2.3%), Adelaide (1.5%), Sydney (1.8%) and Melbourne (1.2%), according to Cotality.
It's a sharp turnaround from just six months ago, when the market's momentum had almost completely stalled. At the start of 2025, quarterly growth was a meagre 0.1% - and even slipped briefly into negative territory.
At the time, it was unclear whether this was a momentary blip or the beginning of a sustained slowdown following the remarkable 82% increase in median dwelling values since the early days of the pandemic.
Today, it's clear the pace has picked up again. So, where to from here?
Tailwinds keeping prices elevated
Several forces are working in Perth's favour right now:
- Lower interest rates - Falling borrowing costs are boosting buyers' capacity and supporting price growth.
- Tight supply - Active listings fell to just 3,382 in July, their lowest in 12 months, according to REIWA. That's a far cry from the 10,000-12,000 listings considered a balanced market.
- Strong economy - The iron ore price continues to hover around US$100 per tonne (well above the $30-$40 profit threshold for major miners), while gold is trading at record highs above US$3,300 an ounce, up from US$2,400 just a year ago.
Headwinds to watch
Not everything is working in the Perth market's favour though:
- Affordability pressures - Years of rapid price growth have stretched budgets, particularly for first home buyers and young families.
- Stubborn inflation - WA recorded the nation's highest annual inflation rate at 2.7% in June, ahead of Brisbane (2.5%) and Melbourne (2%). While the broader inflation trend has eased, persistent price pressures continue to weigh on household spending, which in turn can impact house price growth.
Perth property market: Looking ahead
The most resilient gains are likely to be in the more affordable price brackets, particularly properties under $1 million.
As always, careful asset selection and a long-term perspective remain essential for investors aiming to ride out future market cycles.
If current trends persist, Perth is on track for another year of double-digit price growth. Watch this space.
Image by Nathan Hurst on Unsplash
