The Real Estate Institute of Western Australia (REIWA) is predicting that house prices in the state are on track to grow by 10% in 2025. Despite a slowdown in growth earlier this year, the latest property market quarterly update from REIWA shows that house prices are currently trending towards double-digit growth, with unit prices also trending above 10%. However, there are some factors that could potentially affect this price growth, most notably the Trump tariffs. REIWA President Suzanne Brown highlighted the potential impact of these tariffs on the global economy and Australia’s trading partners, which could potentially result in a recession in the United States.
In the March 2025 quarter, Perth’s median house sale price recorded preliminary growth of 2.7%, rising from $750,000 at the end of 2024 to $770,000. The median unit price also increased by 4% to $520,000, up from $500,000. Both house and unit median sale prices in Perth are now at record highs. Additionally, Perth’s median weekly house rent price increased by 3% in the same quarter to $690, while the median unit rent price remained unchanged at $650. These statistics indicate a positive trend in the Perth real estate market, with both sales prices and rental prices on the rise.
Despite the positive outlook for house prices in Western Australia, there are still some uncertainties and challenges facing the property market. The potential impact of the Trump tariffs and a global economic slowdown could have far-reaching consequences for Australia’s economy and real estate market. However, there is also the expectation of several interest rate cuts this year, which could help stimulate economic growth and support the housing market. It will be important for policymakers and industry stakeholders to closely monitor these developments and adapt their strategies accordingly.
REIWA’s forecast of 10% growth in house prices for 2025 reflects optimism about the resilience of the Western Australian property market. With record-high median prices for both houses and units in Perth, there is strong demand for property in the region. The rental market is also performing well, with increases in median weekly rent prices indicating a healthy rental market. This positive performance in both the sales and rental markets bodes well for continued growth and stability in the Western Australian real estate sector.
As the year progresses, it will be important to closely monitor external factors such as global economic conditions and trade policies that could potentially impact the property market. While there are some uncertainties on the horizon, including the potential for an economic slowdown, the overall outlook for the Western Australian real estate market remains positive. With ongoing support from interest rate cuts and strong demand for property in Perth, the industry is poised for continued growth and prosperity in the years ahead. By staying informed and responsive to changing market conditions, real estate professionals can navigate any challenges and capitalize on opportunities for success in the Western Australian property market.
