Perth Reclaims Its Place as Australia’s Fastest-Growing Property Market

Perth has reclaimed the crown as Australia’s fastest-growing capital city for house prices. The big question is: how long can it hold onto the top spot?

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In the three months to 31 July, Perth dwelling values rose 2.6%, edging out Brisbane (2.3%), Sydney (1.8%), Adelaide (1.5%) and Melbourne (1.25%), according to Cotality data.

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This bounce marks a sharp turnaround from the start of 2025, when Perth’s quarterly growth was barely moving at just 0.1% – and even slipped into negative territory for a short period.

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“Six months ago, there were real questions around whether Perth’s extraordinary run was finally slowing after such strong gains since the pandemic,” Rent Choice General Manager and REIWA Councillor, Clare Christiansen said. “What we’ve seen since then is a clear acceleration again.”

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Tailwinds Driving the Market

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Several key factors are helping to keep Perth property prices buoyant:

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• Lower interest rates – Borrowing costs are easing, giving buyers more capacity.
• Tight supply – Active listings fell to just 3,382 in July, the lowest in a year. For context, REIWA considers a balanced market to be between 10,000 and 12,000 listings.
• A strong WA economy – Iron ore continues to trade around US$100 per tonne (well above the $30–$40 profit threshold), while gold has surged to more than US$3,300 an ounce — up from US$2,400 just 12 months ago.

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“Supply is still nowhere near what’s considered balanced,” Clare explains. “And with WA’s economic strength underpinning confidence, those two factors alone are giving the market plenty of support.”

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Headwinds to Watch

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Of course, it’s not all one-way traffic. Perth’s market faces some notable challenges:

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• Affordability pressures – Years of rapid growth have stretched budgets, particularly for first-home buyers and younger families.
• Persistent inflation – WA recorded the highest annual inflation in the country at 2.7% in June, ahead of Brisbane (2.5%) and Melbourne (2%). While national inflation has eased, cost-of-living pressures continue to bite.

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“Affordability is becoming an increasingly important factor,” Clare said. “Even with interest rates coming down, household budgets are still under pressure from inflation. That will inevitably influence demand at certain price points.”

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What’s Next for Perth?

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Looking forward, the strongest demand – and likely the strongest price growth – is expected to remain in the more affordable segments of the market, particularly under $1 million.

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“For investors, careful asset selection is key,” Clare notes. “Established areas with limited new supply and long-term demand drivers are generally better placed to deliver sustainable growth.”

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If the current trajectory holds, Perth is on track for another year of double-digit growth.

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“Perth has certainly proven its resilience,” Clare adds. “The big question now is whether this pace can continue, or if we’ll see another pause as affordability pressures start to build. Either way, it’s a market to watch closely.”

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