Units are on track to outperform houses in price growth this year, according to the Real Estate Institute of Western Australia’s (REIWA) latest quarterly property update.
REIWA president Suzanne Brown (pictured) said that while the median house sale price was heading towards 10% annual growth, unit prices were set to climb even faster.
“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.”
While units are rising overall, certain segments are leading the charge.
“When we break down the unit market, the highest median sale price growth has been seen for villas and home units, followed by townhouses,” Brown said. “Based on price growth as an indicator, demand for apartments has not been as strong, despite the scarcity of new apartment products.”
Brown said people tended to favour villas and townhouses, noting that many preferred having their own courtyard and a garage adjacent to their home. Home units were also seen as appealing due to their affordability and location within lower-density developments. She added that this preference for medium-density housing should remain front of mind for policymakers.
“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,” Brown said.
Brown warned that broader economic influences could affect property price trends in the second half 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.”
However, Brown noted that interest rate movements could tip the scales the other way.
“On the other hand, we may see more activity if there are more interest rate cuts this year,” she said. “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.”
In the June quarter, Perth’s median house price rose 1.4%, from $775,000 in March to $786,000. Unit prices grew even faster, increasing 2.9% from $525,000 to $540,000 – both now sitting at record highs.
“For example, the Perth median house sale price rose 16.4% over the year to June, but the top 10 performing suburbs all recorded annual growth over 28%,” Brown said.
“In the unit market, the median sale price growth over the financial year was 20%, while the top 10 performing suburbs saw growth over 32%.”
Still, some areas are bucking the trend.
“There are also some suburbs that have seen their median house sale price decline,” Brown said. “This is why, if you are buying or selling, it is important to speak to a local REIWA agent about conditions in your area.”
Looking ahead, Perth’s affordability advantage could be tested in early 2026, when new state and federal incentives for first-home buyers are set to take effect, said Perth buyer’s agent Peter Gavalas of Resolve Property Solutions. Combined with WA’s revised stamp duty concessions for homes up to $700,000, the changes are expected to intensify demand, particularly across the sub-$850,000 segment.
Perth’s rental market showed mixed results in the June quarter. The median weekly house rent dropped 2.2% to $680, while unit rents rose 1.5% to $660.
Annually, however, rent prices remain up – house rents increased 4.6%, and unit rents surged 10%.
“The overall trend is still upwards, but a significant change over the past 12 months has been the rate of growth,” Brown said.
It was noted that the median weekly house rent rose by 4.6% in 2024-25, a slower pace compared with increases of 12.1% in 2023-24 and 16% the year prior. Over the same periods, the median weekly unit rent had climbed by 10%, 14.3%, and 19.3% respectively.
“The upward pressure on prices has been easing as a result of an increase in supply and a softening of demand,” Brown said.
REIWA members are reporting divergent market conditions depending on location.
“While we are seeing an easing of rent price growth in general and more supply, conditions vary significantly from suburb to suburb,” Brown said. “Our members report demand is particularly strong close to the city, which drives prices up, but is often softer in outer-lying suburbs.
“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.”
REIWA’s regional outlook is positive overall, with strong gains forecast for several 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%, and potentially 25%,” Brown said.
“Bunbury, Busselton, and Karratha could achieve growth around 15%, while growth in Broome, Esperance and Kalgoorlie is predicted to be between 2% and 5%.
“The Port Hedland regional centre is likely to record a decrease in its median house sale price over 2025.”
Rent price trends across regional WA are expected to vary depending on local dynamics.
“Market drivers differ across the regions,” 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.”
New suburb-level data supports the strength of the recovery. According to Cotality’s latest Housing Chart Pack, 44.8% of suburbs are now at record value highs, with Perth ranking third nationally at 74.8%.
Access the REIWA report via LinkedIn.
