TL;DR: Perth is rapidly becoming Australia’s most attractive property market, thanks to its combination of affordability, economic strength, lifestyle appeal, and investor-friendly conditions. While the east coast cools, Perth is seeing renewed interest from buyers and renters alike, creating ideal conditions for long-term growth and strong rental returns.
Key Takeaways:
As Sydney and Melbourne continue to grapple with high property prices and slowing growth, Perth is quickly establishing itself as one of Australia’s most attractive property markets. This shift is not temporary. It is driven by strong fundamentals, including consistent demand, affordable pricing, and a desirable lifestyle that appeals to both homeowners and investors. These combined factors are turning national attention toward Western Australia.
As of mid-2025, Perth’s median house price sits just under $700,000, offering a significantly more accessible option compared to Sydney at $1.4 million and Melbourne at $980,000. This affordability attracts a wide range of buyers, including first-home buyers, families looking to upsize, and interstate investors seeking better value.
Affordability in Perth is paired with a high quality of life. The city continues to draw attention for its balanced mix of lifestyle benefits and practical advantages:
This combination makes Perth an ideal location for both families and professionals looking for a more comfortable and sustainable way of living.
Vacancy rates in Perth are below 1%, driving significant competition across the rental market. Limited availability is pushing weekly rents higher, allowing landlords to enjoy more stable income with reduced vacancy risk. The strong demand from tenants is creating favourable conditions for long-term rental returns.
Perth’s affordable property prices combined with increasing rents are delivering gross rental yields of 5 to 6 percent. In contrast, investors in Sydney and Melbourne are typically seeing yields between 2.5 and 3.5 percent. For those focused on cash flow and future growth, Perth presents a more compelling option.
If you’re weighing up the benefits of houses versus apartments for your next investment, our guide on House vs Apartment: Which Investment Strategy Is Right for You? can help you make a more informed decision based on your goals and Perth market trends.
Western Australia’s resource sector continues to be a primary engine of economic activity. Several large-scale projects are attracting strong investment and creating momentum across various industries. These include:
As the demand for clean energy solutions grows worldwide, WA is well-positioned for long-term economic stability and sustained growth.
This economic strength is drawing skilled professionals and families to Perth. Some are returning locals taking advantage of job opportunities, while others are interstate movers looking for more affordable housing and better quality of life. The resulting population growth is increasing pressure on the housing market, particularly near job hubs and transport corridors. This migration trend is supporting continued growth in both property prices and rental demand.
Perth is currently facing one of the most constrained rental markets in Australia. Record-low vacancy rates have led to strong competition among tenants and rapid rent increases. Common indicators of this include properties being leased within days, higher offers from applicants, and growing demand across both inner and outer suburbs. For property owners, this means less downtime and stronger, more reliable returns.
Suburbs located near key infrastructure and employment hubs are delivering dependable results. Investors in these areas are achieving strong rental yields while also positioning themselves for capital growth. These suburbs typically offer proximity to job centres, ongoing public and private development, and strong tenant retention, making them well-suited for long-term strategies.
While rising interest rates have dampened activity in some markets, serious buyers in Perth remain active. These investors and homebuyers are adjusting their strategies and focusing on sustainable returns. Many are entering with a clear long-term outlook based on market fundamentals rather than short-term speculation.
Lenders continue to view Perth as a low-risk, high-potential market. Property values are holding, and banks are issuing pre-approvals with confidence. Buyers who work with experienced property professionals are better positioned to secure quality assets that align with lender expectations.
More Australians are prioritising lifestyle when choosing where to live. Perth offers a balance of natural beauty, affordability, and urban comfort. The city’s sunny climate, clean environment, and relaxed pace appeal to a wide range of people looking to reduce daily stress while enjoying a higher quality of life. Outdoor enthusiasts, young families, and retirees alike are finding that Perth offers a more fulfilling way of living.
Fly-in-fly-out workers, remote professionals, and growing families are increasingly upgrading to larger homes in Perth. With greater borrowing power and clear goals, these buyers are actively competing in key markets. Their presence is helping drive up demand and support price growth in many well-located suburbs.
At Rise Property Buyers, we work exclusively for property buyers. Based in Perth, our team provides expert local guidance, negotiation skills, and access to off-market opportunities. Unlike selling agents, our focus is solely on helping you find and secure the right property at the right price.
Whether you’re an investor seeking strong rental yields, a family relocating to WA, or a first-time buyer entering the Perth property market, we offer strategic advice and support tailored to your goals. Our commitment is to represent your interests every step of the way.
If you’re new to working with a buyer’s agent or want to understand the process more clearly, check out our simple step-by-step guide designed specifically for Australian property buyers.
There is still an opportunity to stay ahead of the changing market, but doing so requires a clear strategy and the right support. Rise Property Buyers is ready to guide you through Perth’s evolving landscape with the insight and experience needed to make informed decisions.
