The year that was… and looking forward

As seen in The West Real Estate

At the end of 2025, Perth’s property market has delivered another year of high sales price growth, building on trends of the past few years.

Demand remained exceptionally strong in 2025, and new housing supply could not keep pace. The fast-rising market tested the resilience of buyers, sellers and agents alike.

The defining characteristic of 2025 market was the persistent shortage of listings. Record low stock levels emerged in Winter and barely shifted. The traditional Spring selling season failed to emerge, with active listings hovering near historic lows. 

As the year progressed, properties in affordable price brackets were snapped up almost immediately with agents reporting overwhelming inquiry for any listings below the Perth median.

With the arrival in October of the Australian Government 5% Deposit Scheme, first home buyers were no longer required to save a 20 per cent deposit, and many new buyers entered the market, further accelerating competition in lower price brackets.

reiwa.com data tells the story of this demand-driven environment. Perth’s median house price climbed from $740,000 at the beginning of January to $830,000 by the end of November.

Sales times hovered around the long-term record of nine days for houses, and unit selling times reached a 25-year record of eight days in October.

Active listings have stayed low all year, highlighting the depth of the supply challenge. On 30 November, properties listed for sale totalled 2,918, compared to 5,662 at the same time last year.

Looking ahead to 2026, we see population growth, and positive economic conditions supporting ongoing strength in the property market, although at a slower pace.

REIWA predicts growth of around 10 per cent in 2026, with some affordability constraints likely to have an impact on the market.

After three interest rate reductions in 2025, further cuts appear unlikely in the first half of 2026 based on current inflation data. This may provide a moderating influence on demand and price escalation.

The key trend we hope to see in 2026 is a gradual rebalancing of the market, with increased listings and new housing supply.

REIWA’s priority remains advocating for a healthier, more stable and more sustainable market for all Western Australians, and we will continue to work with government in 2026 to achieve policy that brings new housing stock to market.

While there are no quick fixes to increase housing supply, we will continue to advocate for shorter development approval timeframes, support for the building industry, more social housing developments and stamp duty reform.

Suzanne Brown
REIWA President