Domain's analysis suggests Perth house prices will increase by 5% in both 2025 and 2026, potentially raising home values by approximately $50,000 each year. Similarly, units are forecasted to see a 6% increase annually, possibly adding about $33,000 to their value per year.
The optimism extends to investors, as evidenced by the Momentum Wealth Property Sentiment Report 2025, which surveyed 500 industry players. Notably, 48.7% of participants believe Perth offers the best buying opportunities, a significant uptick from 42.2% the previous year. Comparatively, Melbourne and Brisbane lag behind, with 19.5% and 17.1% of respondents considering them as favourable destinations, respectively.
Momentum Wealth CEO Damian Collins cites Perth's relative affordability, attractive rental yields, and favourable tenancy regulations as key factors that sway investors. With an average rental yield of 4.3%, Perth outperforms the national benchmark of 3.7%.
This positive trajectory for Perth's property market is poised to have widespread implications for both buyers and investors. With forecasts indicating significant returns, interest in the region is likely to intensify, potentially prompting further investment and development projects to meet the growing demand.
Looking ahead, all eyes will be on Perth as experts and stakeholders alike will closely monitor how market dynamics evolve in response to these optimistic projections. If the demand continues to outstrip supply, as current reports suggest, property prices in Perth may see even more pronounced growth leading into 2027.
