Perth outpaces the nation for ‘other dwelling’ price growth

31 March 2025

"Perth recorded the highest percentage increase in median sale price for ‘other dwellings’ over the December 2024 quarter"

Perth recorded the highest percentage increase in median sale price for ‘other dwellings’ over the December 2024 quarter, according to the latest Real Estate Institute of Australia (REIA) Real Estate Market Facts.

The median sale price for two-bedroom ‘other dwellings’, which includes home units, townhouses, flats/apartments and terrace homes, rose 3.9 per cent to $535,000 over the December quarter. This was 24.4 per cent higher than a year ago.

The median sale price for three-bedroom houses increased 2.8 per cent in the three months to December to $783,000. This was an increase of 20.5 per cent year-on-year.

REIWA President Suzanne Brown said while Perth had experienced some of the strongest growth nationwide, there were definite signs of a shift in buyer behaviour in the past few months.

“For most of 2024, FOMO drove intense competition for homes and saw buyers borrow as much as they could to secure a property,” she said.

“Towards the end of the year, the number of new listings increased, giving buyers more choice. They were able to take more time with their purchasing decisions and we saw the median time to sell increase.

“FOMO has eased, and our members report buyers are being more discerning and also more prudent – they are looking at what they can comfortably afford to repay.

“Those entering the market now will have a different experience to sellers last year, with more moderate price growth, homes taking slightly longer to sell and fewer properties selling at the first home open.

“It’s more important than ever for sellers to work with a local REIWA agent to ensure their home is well-presented and appropriately priced for current conditions.”

In the three months to December, the median sale price for houses increased in Brisbane, Adelaide and Hobart, but decreased in Sydney, Melbourne, Canberra and Darwin. Median sale prices for other dwellings increased in all capital cities except Melbourne, Hobart and Darwin, where prices decreased.

Source: Real Estate Institute of Australia

Median three-bedroom house sale prices: Perth and regional centres

Over the three months to December, the median house sale price for three-bedroom houses rose in all Perth areas: Perth Inner (up 1.9 per cent to $1,620,000), Perth Middle (up 4.8 per cent to $915,000) and Perth Outer (up 1.4 per cent to $730,000).

Across the regions, median prices also increased in Bunbury (up 1.6 per cent to $620,000), Broome (up 5.0 per cent to $782,500) and Albany (up 8.8 per cent to $620,000).

Over the past 12 months, the median sale price rose in all metropolitan areas: Perth Inner (up 9.1 per cent), Perth Middle (up 21.2 per cent) and Perth Outer (up 20.5 per cent).

The regions also recorded strong annual growth, with median prices increasing in Bunbury (up 24.0 per cent), Broome (up 16.4 per cent) and Albany (up 19.2 per cent).

Median two-bedroom other dwelling sale prices: Perth and regional centres

The median sale price for two-bedroom other dwellings increased over the quarter in all Perth regions: Perth Inner (up 1.8 per cent to $575,000), Perth Middle (up 4.8 per cent to $545,000) and Perth Outer (up 3.2 per cent to $480,000).

However, results were mixed across the regions, with median prices rising in Bunbury (up 2.6 per cent to $400,000), but declining in Broome (down 10.4 per cent to $410,000) and Albany (down 10.3 per cent to $390,000).

Annually, the median sale price rose in all metropolitan areas: Perth Inner (up 12.7 per cent), Perth Middle (up 26.7 per cent) and Perth Outer (up 28.0 per cent).

It was the same story across the regions, with prices recording upward growth in Bunbury (up 23.1 per cent), Broome (up 5.1 per cent) and Albany (up 38.1 per cent).

Rental market

Median weekly rent

Perth recorded the largest increase nationwide in median weekly rent for three-bedroom houses and two-bedroom other dwellings over the December quarter and the year.

Median rent prices for three-bedroom houses in Perth rose 3.2 per cent to $650 per week in the three months to December. This was 12.1 per cent higher year-on-year.

The median rent for two-bedroom other dwellings increased 3.3 per cent over the quarter and 12.7 per cent over the year to $620 per week.

Ms Brown said while rents continued to rise over the December quarter, the rate of growth had eased compared to a year ago.

“We continue to see some quarterly movement in median rent prices, but what stands out is the significant decline in annual growth rates,” she said.

“In the year to December 2023, the median weekly rent for three-bedroom houses increased 17.2 per cent and two-bedroom other dwellings rose 22.2 per cent.

“A year later, both have recorded under 13 per cent annual growth.

Ms Brown said the improved conditions were a result of changes to demand and supply over 2024.

“Demand has been self-moderating. We have seen an increase in tenant household sizes, and people choosing to buy instead of renting, or choosing to remain in, or return to, the family home,” she said.

“Supply has also increased as completed investor new builds have come to the market. In addition, some tenants have had their long-awaited new homes completed, which has freed up some existing supply.”

Ms Brown said while the rate of growth was slowing, conditions varied across Perth.

“The median rent is for Perth as a whole. There are some suburbs where demand is putting strong upward pressure on prices, and others where there is more supply and owners have had to discount their initial asking prices to secure tenants,” she said

"As rental supply slowly increases and the vacancy rate continues to rise, we expect there will be periods of rent price stability, and the rate of growth will continue to ease over 2025.”

Over the quarter, the median weekly rent for three-bedroom houses also rose in Adelaide, Brisbane, Canberra and Hobart, remained stable in Melbourne, and decreased in Darwin and Sydney.

Source: Real Estate Institute of Australia

Median three-bedroom house rent prices: Perth and regional centres

Median rent prices for three-bedroom houses across Perth saw mixed results over the December quarter. They increased in Perth Inner (up 3.7 per cent to $850 per week) and Perth Middle (up 2.9 per cent to $720 per week), while they remained stable in Perth Outer ($650 per week).

In the regions, median weekly rents increased in Broome (up 11.1 per cent to $1,000 per week) and Albany (up 5.8 per cent to $550 per week) but remained stable in Bunbury ($600 per week).

Over the year, the median weekly rents rose in all Perth metropolitan areas: Perth Inner (up 6.9 per cent), Perth Middle (up 10.8 per cent) and Perth Outer (up 10.2 per cent).

However, in regional WA, Bunbury (5.3 per cent) and Albany (19.6 per cent) recorded an increase in their median rent prices, while Broome saw a decrease of 4.8 per cent.

Median two-bedroom other dwelling rent prices: Perth and regional centres

In the three months to December, median rent prices for two-bedroom other dwellings rose in Perth Inner (up 1.5 per cent to $660 per week) and Perth Middle (up 5.0 per cent to $630 per week), while they remained stable in Perth Outer ($550 per week).

All three regions recorded declines over the same period: Bunbury (down 3.2 per cent to $460 per week), Broome (down 14.5 per cent to $620 per week) and Albany (down 2.2 per cent to $440 per week).

Over the year, weekly median rent prices increased across all Perth areas: Perth Inner (up 10.0 per cent), Perth Middle (up 14.5 per cent) and Perth Outer (12.2 per cent).

Annual growth varied across the regions, with an increase in Bunbury (up 7.0 per cent) and decreases in Broome (down 8.1 per cent) and Albany (down 20.0 per cent).

Vacancy rate

Perth recorded the highest percentage point increase in rental vacancy rate over the quarter and the year.

At the end of December 2024, the vacancy rate was at 1.9 per cent. This was a rise of 0.3 percentage points from the September quarter and 1.2 percentage points higher than a year ago.

Ms Brown said while the improved vacancy rate reflected overall improvement in rental availability, conditions varied across the metropolitan area.

“It’s important to remember that the vacancy rate is for Greater Perth and will vary from area to area,” she said.

“In suburbs where a lot of new builds have become available, vacancies are taking longer to fill, while some suburbs, such as those closer to the city, are experiencing strong demand and the vacancy rate remains low.

“I recommend tenants and investors speak to a local REIWA property manager to get a thorough understanding of the conditions in their area.”

Over the quarter, vacancy rates also increased in Sydney and Melbourne, remained stable in Brisbane and Adelaide, and decreased in Canberra, Hobart and Darwin. Adelaide had the tightest rental market with a vacancy rate of 0.7 per cent.