Perth’s property market has been one of Australia’s standout performers in recent years. Buyers who stepped in early—despite the scepticism—have seen their properties double in value, often with minimal holding costs. As more investors rush in and headlines shift from doubt to hype, many are now wondering: is the growth run still alive, or has Perth already peaked?
Perth’s Boom – A Look Back
The 2020–2024 Growth Window
Perth delivered strong capital growth between 2020 and 2024, with annual increases of 16% to 18%. This surge rewarded those who entered early, particularly when the broader sentiment labelled Perth as “just a mining town” with limited long-term potential. Those who trusted the data instead of the noise saw real returns.
Comparing Perth to Other Cities
Over the long run, Perth’s growth cycles are not so different from other capitals like Sydney or Melbourne. Cities often go through extended flat periods followed by bursts of sharp growth. Perth’s recent upswing may be strong, but it’s not unusual compared to historical performance in other parts of Australia. Cycles shift—and timing matters.
Where Are We in the Cycle?
Past Growth Suggests More to Come
Perth’s recent growth run may look impressive, but based on past cycles, it could still be early. Many previous booms in Australian property markets have lasted five to eight years. With Perth only three years into its current phase, there may still be room for more gains—especially in well-located suburbs with strong rental demand.
Commodity Super Cycle Could Help
Western Australia’s economy is deeply tied to the mining sector. Historical charts show that commodity demand moves in decades-long waves. Right now, global factors—like population growth in Southeast Asia and India—are setting the stage for higher demand in metals and resources. This trend could further strengthen Perth’s housing market by supporting local employment and investment.
Watch These Warning Signs
Investor Share Is Rising
Right now, around 36% of Perth property transactions are being made by investors. While that’s still within long-term averages, it’s climbing fast. If that figure pushes past 40%, some areas—particularly those already popular with investors—could see less stable growth or even price drops as investor activity starts to overwhelm local demand.
Rental Listings Are Climbing
Rental listings are starting to increase. That’s not a major issue yet, but it’s worth watching closely. If supply continues to grow and vacancy rates start to lift, rental returns could soften. This is especially relevant in lower-priced suburbs where investors have already been very active and the market may be nearing a tipping point.
Should You Buy in Perth in 2025?
Still Opportunities – But Be Selective
There’s no clear yes or no answer for Perth right now. Some pockets are still showing strong fundamentals, while others—particularly lower-priced suburbs—may be running too hot. The key is in understanding micro-markets. Areas with strong local demand, limited investor saturation, and stable rental conditions could still offer upside. Others may have already seen most of their short-term gains.
Supply Still Low, Demand Steady
Days on market remain close to record lows, showing that demand hasn’t dropped off. Unless there’s a sudden surge in listings, it’s unlikely that prices will face strong downward pressure. While growth may slow, current data still points to stability across many parts of Perth in 2025.
Conclusion
Perth isn’t finished yet. The city has more room to grow, but the days of easy gains are likely behind us. For investors, this means a more selective and strategy-led approach is needed. Focus on local data, suburb-level trends, and long-term fundamentals. And if you’re thinking ahead—it might be time to look for the next Perth.
