According to REIWA’s most recent projections, Perth’s prices are expected to rise by about 10% by 2025, which would be a remarkable continuation of the tremendous increases of 2023–2024. Although it doesn’t give the complete picture, that headline figure provides a significant insight into the potential direction of capital values if current trends continue.

The market is changing beneath the surface: supply-side indicators like building approvals are still erratic, buyer behaviour is displaying signs of moderation and reallocation (many buyers are shifting towards units and mid-density stock), and listings have gradually increased from the extremely tight conditions of 2023.

This article examines the signs of declining buyer demand, explains the facts and dynamics underlying REIWA’s prediction, and—above all—provides Bargoti Real Estate with a thorough, tactical roadmap to operate with confidence in a Perth market that is still expanding but becoming more complex.

Key takeaways

• According to REIWA, Perth could grow by up to 10% by 2025, with certain suburbs and apartments seeing the most growth.
• Supply restrictions still influence price momentum, but approvals and completions indicate volatility that may reduce pressure later in 2025.
• Rising interest in units and increased buyer selectivity as affordability pressure bites are indications that buyer behaviour is changing and not collapsing.
• Bargoti’s edge: when competition lessens, value-based negotiation tactics, focused marketing to niche buyer pools, and local data-driven pricing will secure listings and close deals.

What REIWA is actually saying (and what it means)

• The “10% growth” headline is based on REIWA’s quarterly estimates and updates, which are based on the Landgate/REIWA transaction stream and their study of vacancy rates, listing circumstances, and rents.  
• The institution has shown that median home sale prices in Perth are now trending towards an annual gain of approximately 10%. At the same time, the unit market appears poised to surpass homes in the current environment.
• REIWA itself qualifies the prognosis by referring to supply dynamics and economic uncertainty that could restrain growth, so it is not a guarantee.

Why REIWA’s 10% matters:

• It establishes market expectations for both buyers and sellers; consumers may adjust their search parameters and budgets, while sellers gain the confidence to list.
• It draws interest from interstate investors and could alter the ratio of pipeline investors to owner-occupiers.
• It drives vendor pricing behaviour by generating media attention and generating expectations of sustained momentum.

However, a forecast is not a deterministic result; rather, it is a conditional likelihood. If existing trends (limited supply, rising rents, and demand flows) continue, the 10% figure provides a lens—an expectation.

Drivers pushing prices higher (supporting the 10% view)

• Constrained supply
• Larger loans & credit availability for some buyers
• Interstate migration & local economy
• Shift to units

1. There is less new supply entering the market, as evidenced by the fact that listings are still below longer-term averages, building approvals and commencements have been erratic, and approvals declined in several months of 2025.

2. According to REIWA data, average owner-occupier loan sizes are rising, which supports higher borrowing costs for those who can afford them.

3. Continued underlying demand has been maintained by WA’s resources sector as well as quality-of-life relocations to Perth. Absolute price increases in the suburbs of Perth in 2025 have also been noted in media assessments.

4. Demand for units has increased due to shifting buyer preferences (young professionals, downsizers, and affordability seekers), and REIWA predicts that these markets may rise at a faster rate than homes. Even if overall demand flattens, this reallocation of demand may raise unit costs.

Data snapshot — the complex numbers

(Important load-bearing evidence — top sources)

• Weekly observations and market updates from REIWA: According to REIWA’s declarations and data pages for Perth, median prices increased in early 2025, and the trend for houses was about a 10% rise, with units perhaps growing.
• Approvals for ABS buildings (July 2025) are erratic; the number of homes approved decreased 8.2% in July (seasonally adjusted), with significant declines in medium-density approvals. This has implications for future supply.
• Market coverage and industry comments (SmartPropertyInvestment, BrokerNews, Mirage, BrokerNews): sector reporting matches REIWA, indicating lower buyer signals in some areas and houses up towards 10% and maybe stronger units.

Key numeric points (rounded, indicative):

• Depending on the suburb mix and monthly update, the median property price in Perth is now hovering in the $740k–$780k range.
• Year-over-year improvements: 2025 growth is expected to moderate to “sustained” levels instead of the 20%+ monthly leaps that were previously observed, following impressive 2024 percentage gains in numerous Perth areas.
• Compared to a historically balanced market, REIWA and other weekly snapshots reveal very few current listings; yet, in certain areas, listings have increased in comparison to the tightest months of 2023–2024.

The supply story: why prices may keep rising (but not without warnings)

Structural supply restrictions in Perth still support price strength:

• Increased interstate movement, stronger household formation, and years of underbuilding in comparison to population expansion kept vacancy rates low and rent growth robust.  
• Those circumstances support capital gains. (See REIWA’s analysis that the actual problem is supply.)
• Building approvals, however, vary widely. A decline in medium-density approvals, such as flats and townhouses, which can alter the supply flow for units and more inexpensive products, was the leading cause of the ABS’s recent notable decline in total approvals.  
• The dynamics of the construction pipeline (starts, completions, and delays) are essential, but lower approvals now indicate ongoing supply constraints later.

Repercussions:

• Price pressure can continue to drive values upward if approvals and completions remain muted, particularly for well-located homes and high-quality apartments.
• Price rise may reduce more quickly than the 10% forecast if approvals rebound and completions quicken (or if rising mortgage rates discourage buyers).

Signs of waning buyer demand — what to watch for

“Buyer demand waning” is a subtle indicator – not an utter collapse. Vital signs to keep an eye on:

• Longer days on market
• Shift from houses to apartments/units
• Greater price sensitivity
• Geographic divergence
• External macro snippets

1. (DOM) and, in certain suburbs, more conditional offers. Advertising efforts must change as consumers take longer to make decisions. (Agent reports and local weekly REIWA snapshots reveal areas with longer DOM.)

2. Due in part to financial limitations as well as lifestyle and investment considerations, buyer tastes are shifting in favour of less expensive solutions. This year, REIWA and industry reporting note units might surpass houses.

3. Buyers are more inclined to use due diligence and inspections, test prices, and bargain more aggressively. As markets develop from frenetic seller markets to “selective buyer” markets, this is common.

4. Demand may still be high in upscale suburbs with compelling lifestyle or amenity offerings, but it may be lower in some inner-city or outer-suburban areas.

5. Rate expectations, pressures on mortgage serviceability, and increased global uncertainty influence buyer psychology. According to REIWA, growth may be slowed by economic uncertainty.

What waning demand isn’t — and why we shouldn’t panic

It’s critical to distinguish between market reversal and slowing momentum:

• Price declines are not always the result of declining demand.  
• Due to limited availability and few openings, prices will continue to rise in many Perth neighbourhoods.
• Support that eastern-state markets lack is provided by the local economy, which includes interstate migration, a robust mining sector, and more affordable prices compared to Sydney and Melbourne.
• Units may lead growth if that’s where buyers can afford to enter the market, but the “buyer pivot” to units may rebalance price increases across dwelling types.

Suburbs and segments to watch (Perth-specific, tactical)

The market in Perth is diverse. Instead of pursuing generalisations, concentrate on areas that have the structural drivers listed below:

• Lifestyle & middle-market growth suburbs
• Affordability-led growth corridors
• Inner-urban units
• Regional & coastal towns

1. Suburbs close to schools, transport hubs and other amenities will continue to do better. Anticipate strong demand in well-established family suburbs with limited supply.

2. There will be consistent activity in more reasonably priced outer suburbs or infill areas where investors and first-time homebuyers relocate, especially for townhouses and compact homes.

3. Precincts with strong amenities (Fremantle, Scarborough-adjacent, inner-city fringe) may witness increasing unit values as buyers shift their focus to units.

4. In certain micromarkets, regional WA pockets that profited from remote work trends and amenity-seeking migrants can yet do better.

For sellers: pricing and campaign strategy in a market that’s growing but more selective

The approach must embrace two realities if you are a seller in Perth today:

(A) There is upside

(B) Buyers are finicky

This is a valuable selling playbook:

• Data-first pricing
• Pre-launch buyer qualification
• Staged marketing
• High-impact presentation
• Flexible campaign windows
• Transparent vendor negotiation policy

1. When feasible, use recent settled sales—not just listings—within a rigorous 4- to 6-week lookback period, accounting for days-on-market and suburban vendor discounts. Instead of stretching and creating lengthy campaigns, set the price to draw many bidders early if data indicates sluggish buyer activity. (Bargoti’s track record of local sales is a significant plus.)

2. Pre-qualifying buyers decreases failure risk through private inspections and pre-market open houses. Whenever feasible, obtain conditional approval from lenders or pre-approved finance notes.

3. Start with focused outreach to the buyer segments that are most likely to convert (investors and downsizers for units; owner-occupiers for family houses). If momentum is sluggish, then expose it to a broader audience.

4. Virtual tours, staging, and expert photography are essential since they enhance the quality of enquiries and lower perceived risk.

5. Short, aggressive advertisements that generate urgency typically outperform extended, open-ended listings that allow buyers to wait for price decreases, especially in light of buyer selectivity.

6. With sellers, establish explicit expectations regarding reasonable pricing ranges and possible customer behaviours (e.g., offers with conditions). Inform vendors that in a selective market, a “premium listing” frequently converts with quicker, smaller concessions as opposed to obstinate price holds.

For buyers: how to buy smart in Perth now

The advice changes from “you must bid hard” to “you must be surgical” if you are advising buyers:

• The economic and lifestyle trade-off between a house and a unit Offs has returned to the core.  
• Units provide an entrance and the possibility of profit if demand changes in that direction.
• Pre-approval ensures mortgage certainty.  
• Conditional offerings are carefully examined in a selective market.
• Limit superfluous limitations, give reasonable inspection windows, and, if possible, offer flexible settlement periods to establish credibility.
• Employ value-based negotiating by providing sellers with proof of comparable sales in the area and being ready to walk away if the vendor’s demands are significantly unreasonable.

Investor lens: Is Perth still attractive?

Indeed, but with specific warnings:

• In many areas, yield prospects are still supported by low vacancy and growing rents.  
• Because of this, Perth is more appealing than the more competitive East Coast markets with lower yields.
• Buyers looking for income and lower entry prices are showing a lot of interest in units; if they outsell homes, investors who choose high-quality units in the appropriate precincts stand to gain.
• Stamp duty settings and financing terms remain essential considerations for experienced investors.  
• Risk management should be conservative in terms of exit timing, rent growth projections, and capital expenditure requirements.

Investors & landlords: rent vs capital growth considerations

• Rent trajectory: Many WA regions have seen tighter rental markets; landlords should compare yield to anticipated capital gain.  
• Even with limited cash flow in the beginning, rental income can fund investment where vacancy is minimal.
• Selecting stocks: pick suburbs with a stable demand for rental housing (close to universities, employment centres, and transit).
• Rental yield and strata costs must also be evaluated for units that are appealing for capital growth.
• Active portfolio management: Reduce underperforming assets, consider debt structure reviews, and reallocate to growth pockets as needed in response to micromarket volatility.

Risk factors that could derail the 10% path

Economic uncertainty is a warning attached to REIWA’s prediction. Principal dangers of the downside:

• Buyer power will be rapidly reduced by unforeseen tighter funding or a jump in mortgage rates.
• A renewed supply wave could provide the market with respite that restrains capital growth if approvals and construction pick up enough, particularly for medium-density projects.
• Changes in employment or the commodity cycle: Because WA’s economy depends in part on its resources, any unanticipated disruption to the local labour market would lower demand.

Scenario planning — three likely market paths (and how Bargoti should respond)

1. Scenario A — “10% realised, steady demand” (base case per REIWA)

Take action: Maintain pricing near competitors; intensify seller efforts with brief, focused advertising; and use staging and scarcity messaging to gain a premium.

2. Scenario B — “Moderated growth, buyers selective” (most likely near-term)

To lessen buyer friction, put a strong emphasis on buyer qualification, run focused ads, and concentrate on offering genuine value (warranties, inspections, reports).

3. Scenario C — “Rapid supply pick-up or macro shock” (downside)

Move sellers to competitive pricing and contingency-mitigation strategies; change investor messaging to focus on long-term return stories; and operate off-market transactions and maintain vendor results using Bargoti’s database.

Frequently asked questions (FAQ)

1. Should vendors aim for irrational reserve prices if REIWA anticipates 10% growth?

No. The overall expectation is a headline that is 10%. Astute merchants will set their prices to encourage competition; excessive pricing usually prolongs campaigns and reduces vendor power.

2. Will apartments beat homes in every suburb?

No, the unit outperformance is likely concentrated in precincts that are strategically located and offer a range of amenities. Although affordability and lifestyle are the primary reasons why buyers are moving into apartments, the quality of the location is also essential.

3. How soon should agents react to indications from the market?

Right away. Monitor your own campaign data and the weekly REIWA snapshots. Switch strategies: tighten targeting, re-optimise pricing message, or conduct a brief off-market match when DOM rises or enquiries decline.

Data appendix (key sources & what they show)

• REIWA Market Forecast Update (Apr–Jul 2025): Perth median on track for ~10% yearly growth; units tipped to outpace houses. Useful for headline forecasting and commentary.
• REIWA Housing & Rental Affordability (June 2025 quarter): Loan counts, loan sizes, and affordability commentary — critical to understanding buyer capacity.
• ABS Building Approvals & Building Activity (2025): Month-by-month approvals and commencements — core supply metrics.
• Market analyses (OpenAgent, BrokerNews, industry outlets): Suburb-level trends, unit vs house performance, days on market.

Final assessment — positioning Bargoti for the months ahead

Although Perth’s market is still expanding in 2025, it is transitioning into a more discerning stage, where market execution takes precedence over market momentum. Although REIWA’s prediction of about 10% indicates that there is still room for growth, agents need to hone their competitive edge in light of supply instability and buyer selectivity.

To prosper, Bargoti Real Estate can:

• Transforming headline predictions into practical, suburb-level guidance for buyers and sellers.
• Reducing fall-throughs and qualifying buyers with data and CRM insights.
• Taking the lead in capturing premium offers early through focused buyer outreach, staged promotions, and seller education.

A market transition will not only be survived by Bargoti, but it will also be leveraged as a competitive advantage if it takes a methodical, data-driven, and buyer-focused strategy.

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