Australia’s housing market is currently experiencing a unique combination of exceptional wealth generation and mounting financial pressure. While many homeowners are enjoying historic profits from property resales, cementing real estate as Australia’s most dependable avenue for building wealth, a growing number of sellers—especially in certain housing sectors and city locations—are facing increasing losses. This divergence signals a fundamental transformation in the property landscape, moving away from the straightforward story of constant growth toward a more complex, varied market environment.

Recent figures from property resales highlight the extent of the profit boom.

• In the September quarter of 2025, around 95.5 per cent of residential properties sold at a profit, the highest rate seen in twenty years.
• The median profit from these resales hit a new record of about AUD 335,000, exceeding the previous high of approximately AUD 325,600 set during the pandemic in late 2021.

This ongoing trend of high profitability is largely due to sustained increases in property values across much of Australia, with national house prices reaching new peaks throughout 2025. However, beneath the strong headline figures is an opposing trend. Even though most sales are profitable, both the number and the size of loss-making sales have increased. Previous Pain & Gain reports showed that-

• About 94.8 per cent of vendors still made profits, and the median loss rose to nearly AUD 45,000. This suggests that those who do lose money are suffering greater losses than in earlier years.
• This pattern of record gains alongside increased losses does not indicate a weakening market overall, but rather a wider range of outcomes depending on factors like property type, location, and how long the property was held.
• Distinct divisions within the market are now the hallmark of Australia’s current property cycle. Standalone houses remain the most profitable, with only a small fraction selling for less than they were bought for.

In contrast, apartments account for a much larger share of loss-making sales nationwide, even though they make up a smaller share of total transactions. This disparity is driven by varying demand factors:

• Detached homes,
• Limited by available land
• Gain from population growth
• Restricted supply

The growing gap between profitable and loss-making sellers is also influenced by the length of time properties are owned. Those who hold onto their properties for longer periods regularly achieve higher profits, with successful sellers usually owning their homes for over 9 years, compared to less than 8 years for those who incur losses. This trend highlights that building wealth through Australian property is mostly a long-term strategy, rather than a quick turnaround for speculative gains.

Looking at the bigger economic picture, the surge in resale profits is closely tied to changes in monetary policy and lending conditions. The cut in interest rates earlier in 2025 made borrowing easier, boosting buyer demand and driving eight straight months of rising house prices, boosting profits on resales. At the same time, ongoing housing supply shortages in most capital cities pushed prices even higher, allowing sellers to secure substantial profits despite worsening affordability. This national split offers a crucial lens for examining local markets like Perth, where-

• Profits from resales are exceptionally high, but underlying challenges are also growing.
• Perth is now one of the most profitable places in Australia to sell property, with over 98 per cent of sales resulting in gains according to recent comparisons.
• Nevertheless, fast-rising prices, affordability issues, and limited housing supply are starting to change the market’s behaviour in ways that reflect the broader trends seen across the country.

This blog, therefore, explores the Perth market in the context of Australia’s unprecedented run of profitable property resales, examining how national trends are playing out at the local level. Grasping this relationship is vital to understanding both the opportunities and risks in WA’s most rapidly expanding property market.

Perth’s Price Surge and the Foundations of Exceptional Resale Profitability

Perth has become the standout capital city in Australia’s current property market upswing, achieving price growth and resale profits that surpass most national benchmarks. The city’s shift from an extended slump following the mining boom to one of the nation’s most lucrative real estate markets has been both swift and transformative. Over the last three years, property values in Perth have risen faster than those in the eastern states, enabling many homeowners and investors to build significant equity and realise record profits on resale.

1. It is important to grasp the reasons behind this surge to understand why WA now ranks among the top in the country for property resale profits.

• From early 2022 to late 2025, the median house price in Perth increased by about 45–50 per cent, pushing the average value of a detached home from around $520,000 to more than $760,000.
• This growth occurred even as interest rates rose for much of the period, underscoring the strength of demand relative to available supply.
• Even after interest rates peaked, property values in Perth continued to rise throughout 2024 and into 2025. This was driven by a growing population, limited new housing construction, and a continued lack of existing homes for sale.

In contrast, Sydney and Melbourne saw much slower overall growth over this period, cementing Perth’s status as the nation’s fastest-growing capital property market in this cycle.

2. The ongoing price rise has led to strong results for property sellers. Analyses of loss and gain for 2024 and 2025 regularly positioned Perth at the top, or close to it, for profitability across Australia, with over 98 per cent of resales resulting in gains. Median profits from selling detached homes in Perth have been calculated to be in the range of-

• $280,000 to $350,000, depending on the suburb and the length of time the property was held. This reflects both the scale of recent price increases and the relatively low purchase prices for properties bought during previous market lows.
• A significant number of owners who bought between 2015 and 2020, when Perth’s market was flat, have seen particularly high returns—sometimes over 70 per cent in under ten years.
• Multiple interconnected factors have driven this surge in profits. Chief among these is the long-running shortage of new homes. After the end of the mining boom in 2013–2014, WA experienced one of the largest declines in new housing construction nationwide.

The number of new builds remained low for years, creating a supply shortfall that only became apparent when population growth picked up in the early 2020s.

3. By 2024, Perth’s rental vacancy rate had dropped below one per cent, showing just how scarce housing had become and pushing both rents and home prices higher. In this setting, people who already owned homes were in a prime position to benefit from capital gains, given the lack of alternative housing options. Population changes also boosted the market’s strength. Between 2023 and 2025, WA experienced some of the highest levels of interstate migration in the country, turning around a decade of outflows.

4. Compared to the eastern capitals, Perth remained more affordable, attracting both families and investors seeking to enter a growing market at lower prices. Even after substantial price increases, Perth is still much cheaper than Sydney, Brisbane, or Melbourne on average. This price gap has attracted ongoing demand and helped sellers maintain strong profits in most areas. Economic conditions have also played a key role in supporting housing demand. WA’s economy has continued to be closely linked to-

• The resources sector, with high commodity prices from 2023 to 2025, is expected to boost jobs, wages, and household confidence.
• This income growth improved people’s ability to borrow and buy, allowing them to cope with rising property prices without facing the same affordability pressures seen in the eastern states.

As a result, the strong profits from property resales in Perth have been underpinned by genuine economic growth and population trends, not just speculation.

5. High resale profit rates, limited supply, and intense competition among buyers have all contributed to faster sales and greater price certainty. However, these same factors also bring new risks. Rapid price growth reduces-

• affordability over time, which could slow demand growth, while continued supply shortages may lead to price swings if building activity picks up again.
• Perth’s run of high profits is therefore built on strong but temporary factors. The city’s price boom has made it a national frontrunner in resale returns, yet it also signals a shift towards a more mature stage in the property cycle.

As prices continue to climb and homes become less affordable, a wider range of outcomes—already seen in other parts of the country—is likely to appear within WA as well.

Suburb-Level Profit Dispersion Across Perth’s Housing Market

Perth is widely regarded as Australia’s most consistently profitable housing market in the present cycle, a view confirmed by overall data. However, a closer look reveals increasing differences in outcomes from suburb to suburb. Although most sellers across the city are still enjoying significant profits, the size, pace, and durability of these profits differ considerably between inner-city, middle-ring, and outer-suburban areas. This growing geographic distinction is a direct result of Perth’s period of sharp value growth and marks the shift from a general recovery to a more targeted phase of market expansion.

1. Suburbs located within about ten kilometres of Perth’s CBD have generated some of the largest nominal profits on resales in this cycle, largely due to limited land availability, established facilities, and robust demand from owner-occupiers.

• Neighbourhoods such as Subiaco, Mount Lawley, and South Perth have seen median house prices climb by 35–40 per cent since 2022, often resulting in resale gains of $350,000 or more for homes owned for over 7 years.
• These locations are highly sought after for reasons beyond temporary price rises, including their proximity to jobs, schools, and lifestyle amenities.
• As a consequence, resale profits in these suburbs are not just high in dollar terms but also tend to withstand market ups and downs better than other areas.
• Owners selling in these areas in 2025 have often enjoyed both strong capital gains and an easier sale, thanks to fierce buyer demand and a shortage of homes on the market.
• Middle-ring suburbs, situated around ten to twenty kilometres from the city centre, have recorded the quickest percentage increases during Perth’s latest market surge.
• Traditionally more affordable, family-friendly areas like Morley, Baldivis, and Thornlie have seen price jumps of 45-55 per cent over the past three years.

Since purchase prices in these suburbs were low during Perth’s slow market years, even modest increases in value have delivered impressive percentage gains—sometimes matching or surpassing the returns seen in inner-city locations on a proportional basis.

2. This group of suburbs has drawn strong interest from both first-home buyers and those looking to upgrade, boosting price growth and creating lucrative selling opportunities for owners who bought during the 2016–2020 market lows. For real estate agencies-

• These areas now rank among the busiest resale markets, thanks to their affordability and strong capital growth.
• Suburbs on the city’s outer edges, especially those linked to new housing estates, show a more complicated picture when it comes to profit margins.
• Areas on Perth’s outskirts, such as sections of the northern and southeastern growth corridors, have nevertheless achieved broad gains as a result of the wider market upswing.
• Median house prices in many of these outer suburbs have risen by 40 per cent or more since 2022.

However, profits on resale are more affected here by building cycles and increases in housing supply.

3. As more land becomes available and new homes are completed, price rises can slow, reducing the gap between what owners paid and what they sell for. Those who bought new builds at the height of construction costs in 2022–2023 might see smaller gains than those who purchased established homes earlier on. This is one of the few emerging causes of profit variation in Perth’s otherwise strong market. There is also a notable difference between the performance of coastal and inland suburbs.

• Perth’s coastal belt—from Scarborough up to Hillarys and down to Fremantle—has experienced some of the city’s most consistent demand, fuelled by people moving for lifestyle reasons and a shortage of land for development.
• House prices near the coast have grown much faster than the city average, often giving long-term owners resale profits of more than $400,000.
• Inland areas without the same lifestyle appeal have also seen solid value increases, but typically show smaller resale profits, and homes take longer to sell.

This difference highlights how factors such as lifestyle and location are becoming increasingly crucial in shaping profit outcomes as Perth’s market continues to develop.

4. The variation in resale profits across Perth is also linked to the length of time properties are held before sale.

• Homeowners in inner suburbs usually keep their properties for longer, allowing them to benefit from several cycles of price rises and thus achieve larger profits in dollar terms.
• In contrast, outer suburbs often see properties held for shorter periods, partly because of greater mobility and more investors, which generally leads to lower—though still positive—resale profits.
• As Perth moves from recovery into a growth phase, these differences in how long properties are held are making profit gaps between suburbs even more pronounced.
• Perth’s overall resale profits are still exceptionally high compared to the rest of Australia, but the growing differences between suburbs show that the city is moving into a more varied stage of its housing market cycle.

Although most areas are still seeing strong gains, they are no longer consistent across the board. Understanding which suburbs are performing differently—and why—is now crucial for grasping current trends and predicting where the market is heading.

Houses vs Units in Perth: Diverging Profitability Paths

1. The widening gap between standalone houses and units has emerged as a key characteristic of Australia’s property market, with Perth showcasing this trend vividly. Although the city’s overall resale profits remain very strong, there are clear differences in outcomes for houses and units. These differences stem from varying demand factors, supply dynamics, and the types of buyers involved. Standalone houses have consistently achieved almost universal gains and record-high resale margins.

2. In contrast, units, while generally still profitable, exhibit greater variation and a higher likelihood of smaller profits or even losses on resale. The strong performance of detached houses in Perth’s property market is largely due to limited land availability and shifting demographics. In recent years, population growth has been driven mostly by families and people moving from other states, attracted by Perth’s lifestyle and greater space compared to cities in the east.

3. This group strongly favours standalone houses, especially in suburban and coastal areas. With the supply of established houses remaining tight from 2023 to 2025-

• Competition for houses has increased, leading to median house prices rising by around 45–50 per cent since early 2022. This significant growth has resulted in very high gains when these homes are resold.
• By 2025, the typical profit on the sale of a house is often above AUD 300,000, and in more sought-after suburbs, properties held for over 10 years can yield profits above AUD 400,000.
• The share of house resales resulting in a loss is very low—well under two per cent—which highlights just how robust this part of the market is.
• Median prices for units rose by about 25–30 per cent from 2022 to 2025. This growth mainly reflects renewed investor interest and higher rental returns, rather than strong owner-occupier competition driving house prices.
• Inner-city apartments in areas such as the CBD, East Perth, and parts of Rivervale experienced a prolonged oversupply following building surges in the mid-2010s.
• Even though more of these apartments have now been sold or rented, the lingering oversupply continues to limit price increases and profit margins for resales in certain buildings.
• As a result, the typical resale profit for units in Perth ranges from AUD 120,000 to AUD 200,000, depending on the suburb and the length of ownership. While these are still strong figures, they are clearly below those for detached houses.

4. The makeup of buyers also sheds light on the difference in performance. Units have typically attracted more investors because they are cheaper to buy and offer higher rental yields. These investor-heavy markets tend to be more affected by changes in interest rates and borrowing conditions than markets dominated by owner-occupiers. When interest rates rose and lending became more difficult in 2022–2023, investors faced greater hurdles, slowing unit price growth.

5. Once rates stabilised in 2024–2025, investor demand picked up again, but because units started from a lower point, their total price growth has been limited compared to houses. This timing difference still affects the profitability of unit resales today. Another key difference is land value. Standalone houses owe much of their value to the land they sit on, which usually appreciates faster than the buildings themselves. Units, on the other hand, involve sharing land ownership, and the buildings can lose value over time.

6. In a city like Perth, where land is limited, this scarcity reliably pushes up house prices, while apartment values are more vulnerable to fluctuations in building costs and new developments. When more apartments are built—especially along transport corridors—this extra supply can hold back resale prices, even if the overall market is strong. Because of these factors, houses tend to deliver more consistent profits over time.

7. Homeowners in Perth often keep their houses for more than ten years, giving them the chance to benefit from several periods of price growth and build up bigger profits. Unit owners, especially investors, tend to sell sooner as part of their investment strategies or in response to changes in rental returns. These shorter ownership periods mean fewer opportunities to benefit from long-term growth, resulting in smaller profits and a higher chance of breaking even or incurring a loss on resale.

Increasing Loss-Making Resales Amid High Profits

1. Perth’s property market is regarded as one of the most lucrative in Australia’s current market cycle. However, even amid widespread gains, there has been a modest yet noticeable rise in resales that result in a loss. This trend reflects a broader national scenario, where record-high median profits are seen alongside a growing minority of sellers experiencing losses.

2. While Perth still reports some of the lowest rates of loss among capital cities, the fact that losses are occurring at all in a strongly rising market is noteworthy. This suggests that profitability depends not just on market trends, but also on factors such as timing, property type, and the nature of the transaction. Examining the reasons behind these losses offers valuable insight into the stage of Perth’s housing cycle and highlights the risks in certain market segments.

3. In Perth, most loss-making resales can be traced to two main situations:

• owners who sell after a short period of holding, and those who bought their properties at or near recent price highs.
• Many of those who incurred break-even or negative results in 2024–2025 are people who purchased between late 2022 and mid-2023, a period marked by a spike in construction costs and sales prices.
• At that stage, high building expenses and a shortage of established homes pushed prices above land values.
• Owners who sold again within two or three years often found that, after factoring in stamp duty, agent fees, and loan costs, their selling price was barely above what they paid.
• Even in a market where prices are climbing, these costs can turn what looks like a gain into a loss if the property is not held for long.

This underlines how crucial it is to own a property for an extended period to maximise profitability.

4. A significant share of Perth’s loss-making sales comes from recently constructed homes in outer growth areas. Construction expenses across Australia hit their peak in 2022–2023 due to labour shortages and rising material costs, leading to new builds sometimes being priced above comparable older homes in certain suburbs. As the supply of homes returned to more typical levels and competition among sellers increased, the value of near-new properties dropped relative to their purchase prices, which had been inflated by build costs.

5. Owners who sold soon after their homes were finished often saw little to no capital growth, or even losses, even though the general market was rising. While such situations are not the majority, they show how temporary cost surges can lead to losses for some sellers, even in a generally positive market. Apartment sales, especially in areas popular with investors, make up another group where losses are common.

• Inner-city unit markets in Perth experienced oversupply for much of the last decade, leading to slow or flat price growth in some buildings.
• Although most units have gained value in the recent upswing, not all buildings have recovered equally—differences in build quality, reputation of strata management, and the presence of competing developments all play a part.
• Some investors who bought off-the-plan or paid high prices during previous market peaks are still selling at a loss, especially after including holding and strata costs.

This means loss-making sales are more common among Perth apartments than houses, which is in line with trends seen elsewhere in Australia.

6. Another factor leading to losses is financial pressure and forced property sales. The sharp rise in interest rates during 2022–2023 increased home loan repayments nationwide. Even though income growth in WA cushioned the blow for many, some heavily indebted owners still struggled to meet repayments. These forced sales often happen when sellers cannot wait for optimal market conditions.

• This leads to properties being listed in quieter periods or without improvements that could boost value.
• Even small price reductions in these cases can erase any equity gained, especially for those who bought recently.
• While mortgage stress has been less widespread in Perth than in Sydney or Melbourne, these isolated incidents still add to the tally of loss-making resales.
• It’s worth stressing that more loss-making sales do not point to any underlying weakness in Perth’s market.

 In fact, the city is still among the national leaders for the proportion of resales that turn a profit, with most sellers coming out ahead.

7. The higher number of losses simply shows that the market is maturing. As growth rates start to vary more by property type, area, and time of sale, results naturally become more mixed. In the early stages of a boom, nearly everyone wins, but as the cycle matures, differences emerge, and short-term owners or lower-quality assets face greater risks. Perth’s current phase mirrors what has happened in other major Australian cities after periods of strong price growth.

Holding Periods and Timing: The Critical Drivers of Resale Profit in Perth

1. Resale profits in Perth’s property market are influenced not just by where and what type of property is sold, but more importantly by how long and when the property was owned. Although the recent surge in Perth’s property prices has led to broad gains, the extent of those profits depends greatly on the timing of the purchase and the length of ownership. From an analytical perspective, the holding period is the most reliable indicator of resale profit, as it exposes owners to different market cycles and lessens the impact of short-term fluctuations.

2. Timing, on the other hand, sets the initial purchase price within the market cycle. Combined, these factors largely account for the variation in resale profits across Perth and offer a valuable lens for assessing both present results and future investment risks. Those who bought property in Perth during the extended period of stagnation between roughly 2014 and 2020 now make up the group seeing the greatest profits from resale. In this timeframe-

• Property values remained mostly steady or declined after the mining investment boom in WA ended.
• The median price for houses in Perth remained around AUD 500,000 to 550,000 for much of this period, as both property sales and building activity decreased.
• People who bought during this period effectively purchased at the lowest point in the cycle. When the market started to recover in 2021 and accelerated from 2022 onwards, these owners often saw prices rise by more than 50 per cent in total.
• By 2025, owners who purchased at the market’s low point in the late 2010s were typically making between AUD 300,000 and AUD 450,000 in resale profit, depending on location and property type.

This group demonstrates how holding property over a long period, through a full cycle of price growth, can significantly increase profits.

3. In contrast, those who bought property in Perth during the rapid price increase from 2022 to 2024 follow a different pattern of profitability. While property values kept rising after their purchase, the additional growth was smaller because they bought at higher prices.

• The median value of houses in Perth rose by about 20 to 25 per cent from early 2023 to late 2025, which is significant but far less than what earlier buyers gained.
• People who sell within two or three years of buying usually see only a small share of the overall price increase, which often isn’t enough to cover transaction costs like stamp duty, selling fees, and interest charges.

As a result, owning property for a short time is closely linked to lower profits and, in some cases, even losses—despite the market rising overall.

4. The relationship between how long a property is held and transaction costs is especially relevant in Perth, given Australia’s comparatively high purchase taxes. For mid-priced properties, stamp duty can account for 4–5 per cent of the property’s value, so prices need to rise substantially before selling becomes profitable. If a property is owned for seven to ten years or more, the growth in value usually outweighs these costs, resulting in sizable net profits. However, with shorter ownership, these costs account for a larger share of the price increase.

5. This is why the average holding time for profitable sales in Perth is several years longer than for loss-making sales, reflecting trends seen across Australia. Being in the market for longer, rather than trying to perfectly time it, is usually the key factor in financial success. Timing also affects profits by exposing buyers to different market conditions. Buying during times of limited supply—like the construction shortage after 2020 in Perth—often leads to strong price increases due to scarcity.

6. On the other hand, buying during periods of high costs or intense competition—such as the construction cost spike in 2022—comes with a higher risk of slower short-term growth. Sales data show that properties bought at the bottom or early in the recovery phase of the cycle deliver much higher gains than those purchased near temporary peaks. This does not mean late buyers can’t make a profit, but it does mean they may need to hold their property for longer to see meaningful returns.

Migration, Demographics, and Demand Pressures Driving Perth Profits

1. The exceptional profits seen from resales in Perth’s current property market are closely tied to changes in migration and population trends across WA. Although limited housing supply sets the stage for price increases, it is the ongoing rise in demand—fueled by people moving from other states, international arrivals, and shifts in household makeup—that has turned this scarcity into real financial gains. From 2022 to 2025, WA experienced some of the nation’s strongest population growth, marking a sharp turnaround after years of slow progress following the mining boom.

2. This renewed population growth has heightened competition for homes throughout Perth, directly supporting the high resale profits now evident across the city. Migration from other states has been a key factor in the rebound of housing demand in Perth. For much of the last decade-

• WA lost residents as job prospects diminished after the mining boom slowed. However, from 2021 onwards, rising resource prices and renewed investment in mining brought economic growth back, drawing people from the eastern states.
• The relative affordability of housing in Perth has significantly influenced this trend. Despite recent price increases, the median home price in Perth is still well below those in Sydney, Brisbane, and Melbourne.
• Those moving from pricier cities often have more to spend than local buyers, allowing them to compete more effectively and drive up prices.

As a result, sellers benefit from higher resale profits as demand from newcomers outpaces supply.

3. International migration has further added to these pressures. Following Australia’s reopening after the pandemic, there was a significant rise in overseas arrivals—

• Skilled workers and students, many of whom choose Perth for its job opportunities and attractive lifestyle.
• While many migrants initially rent, extremely low vacancy rates have driven rents higher, prompting some to buy homes sooner than they might have before.
• Investor interest has also grown as the rental market tightens, increasing the number of potential buyers.

Together, the rising demand from both home buyers and investors has raised competition for houses and units, driving up sale prices and boosting resale profits in most areas.

4. Changes in the makeup of Perth’s population have also boosted the demand for housing.

• More young people are moving out on their own, and new migrants are forming households soon after arriving.
• At the same time, households are getting smaller due to lifestyle choices and an ageing population, so each increase in population leads to a greater need for homes.
• Even modest population growth can put considerable strain on housing availability when fewer people live together per dwelling.

This pattern has worsened the shortage of homes in Perth, keeping prices on the rise and further supporting strong resale profits.

5. The age profile of new arrivals is also shaping the property market. WA has attracted many working-age adults and families, who typically prefer detached homes in the suburbs. This matches well with Perth’s housing, which is mainly made up of standalone houses rather than apartment blocks. High demand from families has therefore pushed up house prices, particularly, leading to higher resale profits than for units. As these families grow and move through different life stages, they often seek to upgrade or relocate within the city, which helps maintain strong sales activity and consistent prices in suburbs across Perth.

6. The interplay between economic and demographic factors further strengthens demand. Job growth in mining, construction, and services has increased household incomes, making it easier for buyers to afford mortgages even as property prices climb. Wages in WA have grown faster than the national average, boosting borrowing power and purchasing capacity. This rise in incomes enables buyers to keep up with higher home values without the same affordability pressure seen in the eastern states.

7. The demand created by migration also varies by location and affects resale results. People moving from other states or countries often choose affordable suburbs close to jobs, schools, and public transport. As a result, middle suburbs with family-friendly homes and good infrastructure have seen especially high demand, leading to fast price rises and strong profits on resales. Coastal and lifestyle areas are popular with both newcomers and locals looking to upgrade, driving even stronger price growth.

The Role of Investor Activity in Perth’s Resale Profit Expansion

1. The role of investors has become increasingly pivotal throughout Perth’s latest property cycle, shaping both property price growth and the distribution of resale profits across different market segments. While owner-occupiers remain dominant in the city’s detached housing market, a resurgence of investor activity from 2023 onwards has led to higher sales volumes, lower rental yields, and higher property values. This growth in investor numbers has expanded the range of potential buyers, boosting resale profits despite ongoing supply shortages.

2. In addition, the nature of investors entering the market and their main concerns—especially their attention to rental yields and affordable properties—have influenced which areas in metropolitan Perth see the greatest resale profits and how these gains are achieved. Perth has become an especially appealing destination for investors during this period, primarily because rental yields have surpassed those in other major Australian capitals. From 2022 to 2025-

• Average rents for both houses and units in many Perth suburbs climbed by more than 40 per cent, with vacancy rates staying below one per cent.
• This swift increase in rental prices produced gross yields that exceeded those in cities such as Sydney, Melbourne, and Brisbane.
• For investors seeking reliable rental income and capital gains, Perth offered a unique mix of strong cash flow and appreciating property prices.
• As interest rates steadied in 2024, borrowing confidence grew, prompting more investors to return and sparking greater competition for affordable properties.
• Sellers in these markets benefited from increased buyer demand, regularly achieving higher sale prices than owner-occupiers and enjoying healthy resale profits.
• Investor presence has been strongest in Perth’s middle-ring and lower-cost coastal suburbs, where high rental demand is matched by strong potential for price increases.
• Suburbs such as Balga, Armadale, and Rockingham have attracted considerable investor attention thanks to their relatively low entry prices and attractive rental yields.
• As investors vie with first-home buyers and those looking to upgrade for a limited number of properties, prices in these areas have climbed swiftly, resulting in some of the city’s most significant capital growth.
• Sellers in these suburbs during 2024 and 2025 often realised notable profits, especially if they had bought when prices were still low.

Thus, increased investor interest has fuelled price rises in areas where affordability once kept prices down.

3. Investor involvement in the apartment market has also shaped trends in resale profits. During the late 2010s, a surplus of apartments in central Perth led to reduced demand and stagnant prices as this property cycle began. With rental yields rising sharply, investors were drawn back to the unit sector by returns superior to those found in the eastern states. This renewed demand helped clear surplus stock and stabilise prices, resulting in moderate capital gains and fewer losses for many apartment owners.

4. While units have not experienced the same price growth as houses, increased investor activity has improved both market turnover and the likelihood of successful sales compared to previous cycles. Investor behaviour is distinctly different from that of owner-occupiers, affecting and sometimes moderating resale results. Investors are usually more responsive to changes in interest rates, government tax settings, and the state of the rental market, which makes their involvement more cyclical.

5. When lending standards tightened nationally during 2022–2023, investor borrowing declined, and growth in Perth’s unit market cooled. However, once interest rates became steady and rental yields improved, investors quickly returned, driving up prices in selected areas. As a consequence, markets with high investor activity may see sharper price rises when conditions are favourable, but can also slow more quickly if the economic environment shifts.

6. In contrast, areas mainly driven by owner-occupiers—such as those with detached homes—generally experience more consistent long-term growth and higher resale returns. Investors also play a major role in determining how long properties are held and when they are put back on the market. Typically, investors buy with a medium-term outlook that fits with rental cycles or their wider investment strategies.

7. As prices climb, some choose to sell and reinvest their funds, increasing the number of properties for sale and often driving up benchmark prices through added competition. Throughout the current property upswing in Perth, a significant number of investors have sold during high-demand periods, securing strong profits and further lifting market prices. This ongoing movement of investor funds keeps the market lively and helps set price benchmarks, thereby supporting resale gains across various market sectors.

Forecasting Perth’s Resale Profit Trajectory to 2030

1. Predicting the path of resale profits in Perth’s property market to 2030 means considering a mix of underlying and cyclical factors that have fuelled the city’s strong recent gains. The years from 2022 to 2025 saw a surge in activity, underpinned by limited housing supply, increased migration, rising rents, and relatively affordable prices. As Perth moves into the second half of the decade, these influences are expected to shift rather than disappear, leading to a slower but steady period of capital growth.

2. Estimating resale profits through to 2030, therefore, requires examining how changes in supply, population trends, lending conditions, and affordability will interact over the coming years. Although price growth is set to ease from recent highs, solid fundamentals indicate Perth is likely to stay among Australia’s better-performing housing markets, with ongoing—but more varied—resale profit opportunities.

3. Housing supply remains the key factor influencing future profits. Although building approvals have increased since 2024, ongoing challenges in construction capacity and land development mean new completions are unlikely to fully meet the pace of household formation until the late 2020s-

• Perth started this cycle with a significant shortfall of new homes after nearly ten years of underbuilding, and even with more development underway, it will take several years to catch up.
• Provided population growth continues at a steady rate, the market is expected to stay relatively undersupplied, keeping upward pressure on prices and supporting further capital gains.

Forecasts that factor in current approval trends and migration projections point to average annual home value growth in Perth of 3 to 5 per cent between 2026 and 2030—less than the recent spike, but still enough to deliver solid resale returns over standard holding periods.

4. Population trends are expected to keep supporting the market in the coming years. WA’s economy is still benefiting from ongoing investment in resources and infrastructure, which continues to draw workers from other parts of Australia and overseas. While migration may slow from the high levels seen after the pandemic, stable arrivals should still underpin demand given the shortage of homes in Perth. New household formation—especially among younger buyers entering the market—is set to continue, boosting demand in both entry-level and middle-ring suburbs.

5. These demographic factors make widespread price falls unlikely unless there is a major economic downturn. Instead, price growth is likely to become more uneven across different suburbs and property types, leading to more varied resale profit outcomes rather than a broad market slide. Expectations around interest rates also play a big role in predicting resale profits. While changes in monetary policy have historically had a major impact on house prices, Perth’s recent experience has shown that local market strengths can buffer the effects of higher rates.

6. Most analysts expect Australian interest rates to gradually come down towards the end of the 2020s as inflation cools. Even small reductions in borrowing costs can boost buyers’ spending power and often lead to higher property values in tight supply markets. In Perth, which remains more affordable than cities on the east coast, easier access to finance could spark a renewed period of moderate growth after the current phase of stability. This would give properties bought in the mid-2020s a longer window for capital growth, improving resale profits by 2030.

7. Affordability will play a bigger part in shaping where profits are made. As the gap between prices and incomes widens in Perth, demand is likely to shift toward affordable suburbs and housing types. Detached homes in upmarket coastal and inner-city areas may see slower growth as fewer buyers can afford them, even as prices remain high.

• By contrast, middle- and outer-suburban areas with lower prices are expected to see stronger gains, as first-home buyers and new arrivals target them.
• Flats—especially well-located, low- to mid-rise options—could also see better capital growth as buyers priced out of houses look for alternatives.

8. By 2030, the pattern of resale profits across Perth is likely to be more varied, with strong gains still possible but spread differently than during the early-2020s boom. Looking at how long properties are held back upsets the expectation for ongoing profits. People buying into Perth’s market between 2024 and 2026 at higher prices are unlikely to see the huge gains enjoyed by buyers in the late 2010s. However, steady annual growth, compounded over seven to ten years, can still deliver significant nominal returns.

9. For example, a property that rises by four per cent a year from a 2025 purchase could be worth around 50 per cent more by 2035, even without another major boom. This perspective shows that Perth’s strong resale profits should continue for those who hold their properties long enough, though rapid windfall gains will probably become rarer as the market matures. The main risks to these forecasts are the potential for supply to catch up and economic ups and downs.

Conclusion: Median Resale Profits Hit Record Highs Across Australia, Even as Losses Increase — Perth Perspective

Australia’s property market is now experiencing a clear split, with record-high median resale profits occurring at the same time as a noticeable increase in properties sold at a loss. Within this broader national trend, Perth distinguishes itself as a market where the basics of profitability remain robust, thanks to limited housing supply, strong population growth, and consistent price gains. The analysis in this report shows that Perth’s pattern of resale profits is shaped by both a typical market upswing and an underlying shortage of available properties, even as some recent buyers and highly indebted owners begin to face financial difficulties.

The simultaneous rise in both profits and losses does not represent a contradiction, but rather signals a shift from widespread value growth to more varied outcomes across the market. Long-term Perth homeowners, who bought before the recent boom, have seen significant increases in their home equity as prices surged from 2021 to 2024. In contrast, those who bought later—especially in outer suburban estates and certain apartment areas—have faced narrower profit margins and, in some cases, small losses, largely due to higher interest rates and slower price growth. This range of results underscores the importance of choosing the right property, holding it for the right period, and understanding local factors to achieve resale success.

Strategically, the core factors underpinning Perth’s property market continue to favour healthy long-term resale profits. The city’s population is growing faster than new homes are being built, land is limited in older suburbs, and demand for rentals remains strong—together, these factors help keep prices steady. The research shows that for both investors and owner-occupiers, making a profit isn’t just about timing the market; it’s about buying at the right price, selecting quality properties, and understanding the specifics of each suburb. This has become especially important now that higher interest rates have extended the time needed to break even on a sale. Bargoti Real Estate’s approach, focused on analysis and local expertise, is well-suited to Perth’s increasingly varied market. The findings stress the importance of using data to guide purchases, assessing performance at the suburb level, and planning for the long term to get the best results when selling.

As Perth moves into the next stage of its property cycle, high resale profits are expected to continue in areas with restricted supply, while some losses will still occur in markets with too much new stock or recent buyers. Rather than signalling weaker returns, these changes point to a maturing market where careful research and selective investment lead to the best outcomes.

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