What to Expect in the New Financial Year

Perth’s property prices climbed an impressive 24.2% over the past year. But with interest rates holding steady and affordability becoming more of a concern, most experts are predicting more moderate growth for the remainder of 2025.

REIWA forecasts price increases of around 5–10% for the new financial year. That’s still strong by national standards — and a sign that demand continues to outweigh supply. For sellers, this could mean sustained momentum. For buyers, now may be the right time to act before prices move further.

High Demand Is Being Driven by WA’s Growing Population

Western Australia remains one of the fastest-growing states in the country, with a population increase of 2.8% recorded in 2023. Migration from both overseas and interstate continues to place pressure on housing — not just in the rental sector, but also in the owner-occupier market.

That demand is unlikely to ease anytime soon, particularly with WA’s strong economy, job market, and relative housing affordability compared to other states. For homeowners, this paints a promising picture — especially in suburbs with strong infrastructure, schools, or lifestyle appeal.

Investors Are Watching the Rental Market Closely

While new financial year legislation hasn’t dramatically changed the rules for landlords, WA’s rental market remains a key focus. Rental yields in Perth are still among the highest in the country, and median rents continue to rise.

Vacancy rates remain tight, and REIWA reports that the median weekly rent now sits at around $670. For investors, the next six months could bring more opportunities — especially as other capital cities experience cooling demand or increased regulation.

Suburbs to Keep an Eye On

Some suburbs are tipped to outperform through the remainder of 2025. These include:

• Baldivis: Popular with families, offering great value for larger homes.

• Scarborough: Always in demand thanks to its coastal lifestyle and café culture.

• Bayswater: Gaining traction thanks to ongoing upgrades and train line improvements.

• Cottesloe: A long-time favourite that continues to command premium prices.

Whether you’re looking to buy, sell, or invest, understanding which pockets of Perth are primed for growth can help shape your next move.

What to Watch This Financial Year

With interest rates expected to remain steady or potentially ease, market confidence could grow further. At the same time, tight supply, increasing construction costs, and continued population growth are likely to keep pressure on prices.

The second half of 2025 could bring more buyers into the market — particularly if economic conditions remain strong and buyer confidence continues to build. For sellers, it’s worth staying across suburb-level trends, and for investors, rental reform and tax updates should remain on the radar.

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.