Units are set to outperform houses for price growth in 2025, according to REIWA's property market quarterly update.
REIWA President Suzanne Brown said the median house sale price was trending towards 10 per cent growth over the year, while unit prices were on track to achieve 15 per cent growth under current conditions.
"The median sale price in the unit market, which includes villas, townhouses, home units and apartments, was growing at a slower rate than the median house sale price for some time, but that has accelerated over the past 12 months," she said.
"The strong rise in house prices has seen demand increase in the unit market, which offers more affordable alternatives to houses.
"When we break down the unit market, the highest median sale price growth has been seen for villas and home units, followed by townhouses. Based on price growth as an indicator, demand for apartments has not been as strong, despite the scarcity of new apartment products.
"We know people like villas and townhouses; people often prefer to have their own courtyard and a garage next to their home. Home units are also attractive to home owners as they tend to be affordable and in lower-density developments.
"What the data suggests is that when it comes to addressing Perth's housing issues, policy makers should focus on medium density development where possible, as this appears to be what consumers prefer."
Ms Brown noted there were several factors that could impact the rate of price growth over the remainder of the year.
"Economic uncertainty as a result of the Trump tariffs remains an ongoing issue," she said.
"The potential effect of the tariffs creates concern among the community, particularly in relation to employment security, and this in turn can affect buying and selling behaviour.
"On the other hand, we may see more activity if there are more interest rate cuts this year. This increases people's borrowing capacity and could have an inflationary effect on prices, particularly in more affordable suburbs or for more affordable properties, such as units."
Perth's median house sale price recorded preliminary growth of 1.4 per cent in the June 2025 quarter, with the median house sale price rising from $775,000 at the end of the March 2025 quarter to $786,000.
The median unit sale price increased 2.9 per cent from $525,000 to $540,000 over the same period.
Perth's house and unit median sale prices are both at record highs.
Ms Brown said while strong price growth was forecast for Greater Perth, conditions varied from suburb to suburb.
"For example, the Perth median house sale price rose 16.4 per cent over the year to June, but the top 10 performing suburbs all recorded annual growth over 28 per cent," she said.
"In the unit market, the median sale price growth over the financial year was 20.0 per cent, while the top 10 performing suburbs saw growth over 32 per cent.
"There are also some suburbs that have seen their median house sale price decline.
"This is why, if you are buying or selling, it is important to speak to a local REIWA agent about conditions in your area."
Perth rental market
Perth's median weekly house rent price declined 2.2 per cent from $695 at the end of the March quarter to $680 at the end of the June quarter. The median unit rent price rose 1.5 per cent from $650 to $660 per week.
Annually, the median house rent price increased 4.6 per cent, while the median unit rent price increased 10.0 per cent.
Ms Brown said while the median house rent declined over the quarter, REIWA still expected some growth for both median house and unit rent prices over 2025, although at a lower rate than in the past few years.
"The overall trend is still upwards, but a significant change over the past 12 months has been the rate of growth," she said.
"For example, the median weekly house rent increased 4.6 per cent in 2024-25 compared with 12.1 per cent in 2023-24 and 16.0 per cent the year before. The median weekly unit rent increased 10.0 per cent, 14.3 per cent and 19.3 per cent over the same timeframes.
"The upward pressure on prices has been easing as a result of an increase in supply and a softening of demand."
Ms Brown said despite the changes, challenges remained in the rental market.
"While we are seeing an easing of rent price growth in general and more supply, conditions vary significantly from suburb to suburb," she said.
"Our members report demand is particularly strong close to the city, which drives prices up, but is often softer in outer-lying suburbs," she said.
"In these outer areas, some members report there is strong competition for modern, well-maintained homes, but they are seeing prices decline for older, dated properties. And in areas where a lot of new supply has become available, investors may have to lower their asking price to secure a tenant.
"Again, it is important to speak to a local REIWA property manager to get an on-the-ground understanding of area-specific market conditions."
Regional WA
Median house sale price growth is forecast across the majority of regional centres.
"Based on current conditions, Albany and Geraldton are likely to be the top performers this year, with median house sale price growth in the range of 20 per cent, and potentially 25 per cent," Ms Brown said.
"Bunbury, Busselton and Karratha could achieve growth around 15 per cent, while growth in Broome, Esperance and Kalgoorlie is predicted to be between 2 and 5 per cent.
"The Port Hedland regional centre is likely to record a decrease in its median house sale price over 2025."
Rent price growth will also vary across the regional centres.
"Market drivers differ across the regions," Ms Brown said.
"Broome's rental market tends to be quite seasonal and prices are currently rising but they typically tend to decline towards the end of the year.
"Price growth is slowing in Busselton, Kalgoorlie-Boulder and Port Hedland, while it remains fairly strong in Albany, Bunbury, Geraldton and Karratha.
"Esperance rent prices are trending downwards at the moment, however this market can be quite volatile. The relatively low number of leases can see the median fluctuate significantly depending on the price of properties leasing each quarter.
"As conditions vary across WA, and within the many suburbs in each regional centre, my advice is to speak to local REIWA property managers to get an on-the-ground update of market activity if you're looking to buy, sell, invest or rent."
