Perth Real Estate Market Shifts and Opportunities for Sellers in Early 2025.
A Slight Slowdown, But Still Opportunity for Sellers
The Perth property market has experienced remarkable growth over the past year, with the median house price in January 2025 reaching $750,000—an increase of 23% from January 2024. Similarly, the median unit price rose 20.5% year-on-year to $500,000. While these figures are impressive, the market has started to show signs of a more measured pace in comparison to the red-hot conditions of 2024. In particular, property prices are still rising, but at a slower rate. Bayswater 6053 has seen a 16.8% rise over the last year with the median Bayswater price now sitting at $907,500.
This cooling trend is particularly evident after the festive season, which traditionally brings a slowdown in market activity. Yet, despite this easing, there is still strong demand for quality properties in sought-after areas, making it an excellent time for sellers to make their move.
What’s Happening in the Market?
REIWA CEO Cath Hart has commented that buyers are now more discerning, taking more time with their purchasing decisions. This shift in buyer sentiment reflects the easing of the “fear of missing out” (FOMO) that dominated much of 2024. However, it’s not all bad news for sellers—properties in prime locations and those that are well-presented continue to perform well.
Some of the suburbs seeing the most growth in January include Scarborough (up 2.7% to $1,204,000), Dawesville (up 2.5% to $717,500), and Camillo (up 1.8% to $580,000). These areas are still attracting keen interest and quick sales, with some properties selling in as little as six days in suburbs like Cooloongup. Bayswaters average days on market is currently 14 days.
However, not all areas are experiencing the same level of activity, and some properties may take longer to sell. In January, houses in Perth sold in a median of 22 days—up from 13 days in January 2024—while units took a median of 17 days to sell.
Why Sellers Need to Act Now
For sellers, it’s important to adapt to the changing market conditions. While the market still favors sellers, the competition for buyers has shifted. Properties that are well-presented and correctly priced will attract more interest, while homes that are overpriced or poorly presented may linger on the market for longer.
Here are a few tips for sellers to make the most of the current conditions:
- Presentation is Key: Homes that are clean, well-maintained, and stylishly presented will attract more buyers and often sell faster. Small investments in staging or refreshing the property can make a huge difference.
- Price it Right: With rising prices slowing down, setting a competitive and realistic asking price is crucial. Work with a trusted real estate agent who knows your area and can help you price your property according to current market conditions.
- Stay Patient: While homes are taking a little longer to sell compared to 2024, the rise in active listings indicates a healthy market with plenty of opportunities. Homes that are in desirable locations or offer unique features will still generate interest, so don’t be discouraged if you don’t see immediate results.
- Act Fast on Offers: In areas where demand is strong, homes can sell quickly. Be ready to move fast if the right offer comes in, and don’t wait for the “perfect” offer if the one on the table meets your needs.
The Rental Market: A Steady Rise
While the sales market is cooling off slightly, the rental market continues to see growth. Perth’s median weekly rent rose 3.1% to $670 in January, and the rent for houses increased by 1.5%, reflecting a 6.3% rise from the previous year. Units, meanwhile, have remained stable but saw a 12.1% increase compared to January 2024.
The suburbs seeing the biggest jumps in rental prices include Nedlands (up 17.6% to $1,000), Scarborough (up 5.7% to $740), and Innaloo (up 3.8% to $750). Despite some monthly fluctuations, the rental market has moderated from its peak growth rates in 2023, yet rental prices remain elevated. At present Bayswaters average weekly rental is $680 per week.
A Bright Outlook for 2025
While the pace of price growth has slowed, 2025 is still shaping up to be a solid year for Perth real estate. For sellers, the key to success will be understanding the shifts in the market and adjusting expectations accordingly. Well-presented homes in desirable locations will continue to perform strongly, while those that aren’t quite up to scratch may need to be more competitive in terms of price or presentation.
Ultimately, as buyer sentiment evolves, staying informed and working with an experienced agent will ensure you make the right moves in 2025’s dynamic real estate market.
Get in Touch
If you’re considering selling your property in Perth this year, now is the time to assess the market and get the right advice. Reach out today to discuss how we at Lay2 Real Estate can help you achieve your real estate goals. Contact Lay2 Real Estate – click here.
The above does not constitute financial advice. Be sure to consult with your accountant before making any investments in real estate and other investments.