Is Perth losing momentum?
While Perth’s median house and unit prices rose once again last month, the city’s rental market growth rate has begun to slow.
According to the Real Estate Institute of Western Australia (REIWA), Perth’s median house sale price increased by 1 per cent to $757,750 in February 2025, a 22.2 per cent increase from February 2024.
Similarly, the median unit sale price in Perth also increased over the month, rising 2 per cent over February 2025, and 21.4 per cent year-on-year to $510,000.
The three Perth suburbs that saw the most growth in January were Mandurah (up 2.9 per cent to $530,000), Doubleview (up 2.5 per cent to $1,190,000) and Carlisle (up 2.3 per cent to $775,000).
While property prices have continued to grow, REIWA CEO Cath Hart noted a shift in buyer behaviour within the city.
“Last month we reported buyers were being discerning and taking their time in their purchasing decisions. They are also being very prudent when it comes to prices and making an offer,” Hart said.
“A year ago, FOMO (fear of missing out) saw buyers seek to borrow as much as they could in order to secure a home. Now they are looking at what they can comfortably afford to repay,” she added.
While Hart said that many Perth sellers are still receiving multiple offers and an outcome above the asking price, she emphasised that the activity levels in the city’s market are slightly below last year’s.
“People looking to list their home now will have a different experience to sellers last year, with moderate price growth, homes taking slightly longer to sell, and fewer homes selling at the first home open,” Hart said.
Time on market decreases month-on-month
Houses in Perth sold in a median of 13 days in February, registering nine days faster than the month before but four days slower than a year ago.
Similarly, units sold quicker with a median of 12 days, five days faster month-on-month, but three days slower than one year prior.
Hart said that the tightening of the median time to sell in February was in line with the institute’s expectations.
“Buyers returned to the market with enthusiasm after the festive season, which has seen days on market decrease,” Hart said.
Active listings remain at normal levels
At the end of February, there were 4,948 active listings for sale in Perth, which was 1.1 per cent higher than at the end of January, and 23.3 per cent higher than a year ago.
Although new listings increased in February, Hart noted that the speed of sales has kept active listings close to 5,000.
“February and March tend to be busy months for the market, so we expect more new listings to come to the market in March, but if properties continue to sell quickly, active listings will remain at similar levels,” Hart said.
Rate of growth beginning to slow for median dwelling rent
Perth’s median dwelling rent increased 0.7 per cent to $675 per week in February, which was 8 per cent higher than the same time last year.
The median weekly rent for houses remained at $680, but registered 4.6 per cent higher than in February 2024.
The median rent for units was also stable at $650 per week over February 2025, which was 12.1 per cent higher than a year ago.
The institute’s findings showed that 2,053 Perth properties were available for rent at the end of February, which was 4.8 per cent lower month-on-month but 23.7 per cent higher than last year.
Homes in Perth leased in a median of 15 days during February, one day slower than January but unchanged from February 2024.
Hart said that Perth’s gradually increasing rental supply and vacancies have caused the city’s median rent prices to grow slowly.
However, despite the increase in rental property prices, Hart said there is “still strong demand, and properties are still renting quickly”.
“The median time to lease has been sitting at around two weeks for some time. This is keeping the number of properties you see advertised at any one point fairly low,” Hart said.
“It is important to consider the bigger picture, which shows active listings are more than 20 per cent higher than a year ago, reflecting an overall gradual improvement in the market,” she concluded.