The Evolving Impact of Perth’s Housing Shortage

Perth’s property market in 2025 offers exciting opportunities for investors, with strong growth in both property values and rental returns driven by high demand and limited supply. Following a remarkable 20% surge in property values in 2024, experts are forecasting another 9% to 11% increase in 2025. With a limited supply of properties, the market remains highly competitive, offering excellent prospects for capital appreciation.

One of the key factors driving this growth is the ongoing imbalance between supply and demand. With property listings consistently lower than typical levels—ranging from just 3,000 to 5,000 properties available—there’s a clear shortage in the market. This scarcity is pushing prices higher, as properties are selling faster, often in under two weeks. As demand continues to exceed supply, the potential for long-term value growth remains strong for investors.

Perth’s rental market also remains highly attractive for landlords. With fewer than 3,000 properties available to rent—far below the 13,500 needed for a balanced market—demand for rental properties is consistently high. This is reflected in the 8.9% increase in median rents over the past year, with projections suggesting an additional 5% to 7% rise in 2025. Investors can expect strong, reliable rental returns, further bolstering the appeal of the market.

Efforts to boost housing supply, such as funding for apartment and infill developments, are currently underway, but it will take time for these measures to make a meaningful impact on the market. In the meantime, Perth’s property market remains one of the most attractive in the country for investors. With strong growth in property values, competitive rental yields, and a clear supply-demand imbalance, the stage is set for continued success for landlords and investors in 2025.

If you'd like to talk about how this will affect your property plans, don't hesitate to contact the team at Bellcourt on 08 6141 7848