Is Perth’s Property Boom Running Out of Steam? 4 Charts You Can’t Afford to Ignore
Reading Time: 3 minutes
Perth’s property market has been riding high, stealing the show on Australia’s real estate stage. Records have been smashed, sceptics silenced, and investors have ridden the wave of booming growth. But, like all great runs, the question now is: how long can it last? Is Perth’s property market reaching its peak? Let’s dive into the data to uncover some revealing (and slightly eyebrow-raising) trends.
1. Price Growth: Slowing, Not Stopping
Perth property prices are still on the rise, but the pace has taken a breather since June 2024. Think of it this way: Perth started 2024 at a sprint and is now running at a steady jog. After a stunning 21% growth this year, 2025 is expected to remain strong—but don’t expect the same breakneck speed.
What does this mean? The market isn’t crashing, but it’s adjusting to a more sustainable rhythm. For buyers and investors, this could be a sign that the golden window for quick wins might start to close.
2. Sales Listings: Crawling Back Up
Perth’s market has been notorious for its scarcity, with sales listings scraping record lows for most of 2024. But here’s the twist: for the first time this year, total listings for four weeks ending December 1 were 1.2% higher than the same period in 2023.
Since hitting rock bottom in July, listings have been creeping up at an accelerating pace—posting the largest annual increase across all Australian capitals and regional areas. Sure, listing levels are still 50% below the “normal” pre-pandemic figures, but this steady uptick suggests that supply pressures could ease, taking some heat out of the market.
3. Investors Are All In (and That’s a Bit Worrying)
Investors have jumped into the Perth market with both feet, pushing new loan commitments to levels not seen since 2005-2006. While this is a vote of confidence in the market, heavy investor activity often comes with risks.
Markets fuelled by speculative demand can be fragile—if sentiment changes, the cooldown could be sharp and swift. For now, investors are optimistic, but this trend is one to watch closely in 2025.
4. Building Approvals: Booming Beyond Belief
New building approvals in Greater Perth are up a staggering 32% year-on-year, leading the nation. This is great news for addressing housing shortages and supporting future population growth.
However, here’s the catch: when this new supply eventually hits the market, it could create competition among sellers, putting downward pressure on prices. Compare this to other capitals, where approvals are stagnant or down, and Perth stands out as the market to watch (and possibly tread carefully).
What to Expect in 2025
Analysts agree that Perth will have a strong 2025, but their forecasts vary:
SQM Research: Predicts growth between 14% and 19%.
Domain: Takes a more conservative view, forecasting 8% to 10% growth.
Double-digit growth seems likely, but SQM’s high-end prediction might be a tad optimistic given the emerging signs of moderation. A mid-range growth scenario feels more realistic as the market balances itself.
The Takeaway?
Perth’s property market is still underpinned by strong fundamentals: a low unemployment rate of 3.3%, positive migration flows, and substantial infrastructure spending. However, the data is painting a picture of a market that might be nearing its peak.
If you’re a buyer or investor, this is the moment to sharpen your strategy. The days of rapid-fire growth might be numbered, so a thoughtful, data-driven approach is essential to make the most of what’s next.
What’s your take? Are you still bullish on Perth, or do you think it’s time to explore other opportunities?
We’re here to help
Interested? If you're like many property investors, you're probably wondering what's the right thing to do at present. Should you buy, should you sell, or should you just wait? Let us help you buy your next investment-grade property. Book an obligation-free consultation today.
Other helpful articles for your property journey that a buyer’s agent can assist you
Is Axing Negative Gearing the Fix for Australia’s Housing Crisis?
Should You Invest in an Investment Property in 2024?
Most Common Mistakes Investors Make When Buying Property
Top 5 tips for selecting the right suburb to invest in
Guide to finding the right investment property
Buying an investment property through SMSF
Essential Tips for New Investors After Purchasing a Property
The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any individual objectives, financial situation or needs. Before acting on this information, Premier Buyers recommends that you consider whether it is appropriate for your circumstances and engage qualified professionals.