Perth Property: The Quiet Achiever Racking Up Double-Digit Growth
Perth property market growth 2025: the quiet achiever led every capital in 2024. Record-low listings, strong demand, and what investors should watch next.
Perth led every capital city in 2024, posting double-digit annual growth while Sydney and Melbourne stalled. Heading into 2025, record-low listings and relentless demand suggest the run is not over.
The catch is affordability. Perth's great advantage is fading as prices climb, and that changes the calculation for investors arriving now.
What the data actually shows
Perth was the strongest capital in the country in 2024, with annual growth in the double digits, per CoreLogic.
The momentum carried into year-end. While the two largest cities slipped, Perth kept setting record-high dwelling values month after month.
It did this from a low base. Even after years of gains, Perth remains far cheaper than Sydney or Melbourne, which is a large part of why buyers keep coming.
Why Perth keeps outperforming
The core story is supply. Advertised stock in Perth has run roughly 40% below the five-year average, one of the tightest markets in the country.
Demand is doing the rest. Population growth, an improving resources sector, and interstate buyers chasing value have all converged on a single market.
The number: Advertised listings in Perth sat around 40% below the five-year average heading into 2025, CoreLogic data showed. When this little stock meets this much demand, prices have nowhere to go but up.
Rents tell the same story. Perth's vacancy rate has been among the lowest of any capital, keeping strong upward pressure on rents and supporting yields.
The RBA adds a possible tailwind. With the Bank widely expected to cut for the first time this cycle within days, cheaper borrowing could pour more fuel on demand.
The risks worth watching
Affordability is the big one. The cheap-entry advantage that powered Perth's run is shrinking with every record high.
Yields are compressing too. Prices have climbed faster than rents, thinning the cashflow buffer that first drew investors in.
And the cycle is maturing. After a multi-year surge, future gains are likely to be smaller than the double-digit numbers of 2024.
Perth against the eastern capitals
| Factor | Perth | Sydney / Melbourne |
|---|---|---|
| 2024 growth | Double digits | Soft to negative |
| Median price | Far lower | Far higher |
| Rental vacancy | Very tight | Tight |
| Gross yield | Higher | Lower |
| Cycle stage | Maturing | Awaiting recovery |
The takeaway: Perth still offers stronger yield and momentum, but the easy, early-cycle gains are increasingly behind it.
What investors should ask
Is it too late to buy Perth? The biggest gains have likely happened, and yields are tighter than a year ago. But low supply and steady demand mean the case is far from closed, especially for yield-focused buyers.
Perth or Adelaide for the next leg? Both ride supply shortages and affordability. Perth has the resources tailwind, Adelaide the deeper value gap. The choice comes down to entry price and yield in specific suburbs.
Will a rate cut push Perth higher? Probably, at least at the margin. Cheaper money lifts borrowing power in a market already short of stock, which tends to feed straight into prices.
Can Perth's yields hold up? Vacancies are extremely low, which supports rents. But if values keep outrunning rents, gross yields will keep compressing.
The bottom line
Perth has been the country's standout for a reason: a genuine supply shortage meeting strong, broad-based demand. That mix is still in place in early 2025, even as affordability quietly erodes and yields tighten. The opportunity now is more selective than it was two years ago, which makes suburb-level data essential rather than optional. Clear Yield surfaces Perth's price, yield, and vacancy trends street by street, so you can see exactly where value still sits before you commit.