Key Points – Perth Property Market Update Q4 2025
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Listings hit a record low: Perth finished December with just 1,881 properties for sale, down 35.5% from November and 57.2% lower than December 2024.
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Q4 did the heavy lifting: Perth dwelling values rose 7.6% over the quarter versus 15.9% over the full calendar year — meaning ~48% of 2025’s growth landed in Q4.
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Prices kept climbing into year-end: REIWA reported Perth’s median house sale price reached $840,000 in December, and the median unit price hit $590,000.
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REIWA’s take: demand didn’t ease — it intensified. Suzanne Brown noted FOMO returned, competition was strong, and homes were selling in record timeframes.
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WA’s economy stayed out in front: CommSec ranked WA #1 overall again, leading on household spending, housing finance, dwelling starts, and equipment investment.
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Our enquiry mix signals “outside money” is still very active: In Q4, roughly ~60% of enquiry momentum came from out-of-town buyers/investors, with local owner-occupiers the largest local segment.
Full Report – Perth Property Market Update Q4 2025
If Perth felt like it sped up in the second half of the year, you weren’t imagining it.
Q4 2025 was the quarter where the market’s biggest constraint — lack of stock — collided with sustained demand… and the result was a genuine pressure-cooker finish to the year.
The numbers that mattered in Q4
1) Listings: record-low supply
REIWA’s data shows listings across Perth fell to 1,881 at the end of December — a record low, and an extraordinary level of scarcity for a capital city market.
(Source: REIWA, Buyers Advocate Perth)
REIWA President Suzanne Brown summed up the mechanics clearly: December normally sees a seasonal dip, but this time it was amplified by “ongoing strong demand and an extended period of lower-than-usual new listings.”
She also called out what many sellers have been quietly feeling: a “logjam” — people want to sell, but hesitate because they’re worried about finding their next home (or even a short-term rental in the right school/work area).
If choice feels limited, this is where quality matters most. I’ve written more on why fewer, better properties tend to outperform over time here
→ Quality Over Quantity: Why Better Properties Build Better Wealth
2) Growth: Q4 was the strongest quarter of the year
Cotality’s Home Value Index shows Perth finished 2025 up 15.9% (calendar year), with 7.6% of that coming in Q4 alone.
(Source: Cotality)
Do the maths and it’s telling: ~48% of the year’s growth happened in Q4 — which is exactly what a supply-starved market tends to do when buyer sentiment firms up and urgency returns.
3) Prices into December: still rising
REIWA reported Perth’s median house sale price reached $840,000 in December, up 12.0% year-on-year, while the median unit price rose to $590,000, up 18.0% year-on-year.
And importantly: REIWA noted units continued to outpace houses, which fits with what we’ve seen when affordability pressure pushes more buyers into villas, apartments, and well-located “entry” stock.
Why the market ran hot
1) Supply stayed tight — and December made it tighter
Brown pointed out that while December is seasonally quieter, the bigger issue is that new listings have been running below long-term averages for months — and demand didn’t take a break.
Her description of the market was blunt: FOMO returned, competition was strong, offers were often well above asking, and homes were selling in record timeframes.
2) WA’s economic fundamentals stayed supportive
CommSec’s State of the States (Oct 2025) again ranked WA as the nation’s strongest-performing economy, leading for the fifth consecutive quarter — and topping household spending, housing finance, dwelling starts and equipment investment.
(Source: CommSec)
That matters because strong relative economic conditions tend to translate into:
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confidence to transact
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steady household formation and migration pressure
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and a stronger “floor” under buyer demand.
What we’re seeing on the ground at Buyers Advocate Perth
In Q4, our enquiry mix leaned heavily toward out-of-town investors (from interstate/overseas/regional WA), making up a bit over half of total enquiries.
Local demand remained real — but local owner-occupiers were the dominant local group, making up around a quarter of enquiry activity, with local investors a smaller but consistent slice.
The takeaway: Perth is still attracting meaningful external attention, and local buyers haven’t stepped away — which is exactly the combination that keeps pressure on prices when listings are this low.
Outlook for Q1 2026: likely to start fast
January and February in Perth can be deceptive: you’ll often see “apparent calm” because stock hasn’t properly rebuilt yet.
The key issue is simple:
— If listings don’t bounce, competition tends to feel even sharper as buyers return rested, motivated, and finance-ready.
REIWA noted listings usually lift in January — but also warned we may not see as much of an increase as in previous years due to current constraints.
The watchlist
— Sentiment: Big quarter-on-quarter growth figures tend to reignite urgency quickly (and urgency creates mistakes).
— The affordable segment: Units/villas and entry-level homes tend to carry the load when affordability tightens (and REIWA’s unit growth signals that’s already playing out).
— Credit conditions: If investor lending keeps rising nationally, it wouldn’t be surprising to see tighter credit settings or policy “tweaks” at some point later in 2026. (Not a prediction — just something worth watching.)
What this means for you
For buyers
In a market where stock is scarce and competition is sharp, the biggest advantage isn’t speed alone — it’s clarity. Knowing what you’re prepared to compromise on, what you won’t, and where you can move decisively matters more than trying to time the market.
Preparation is key. Buyers who are finance-ready, suburb-focused, and clear on value tend to make calmer decisions — and avoid paying emotional premiums when competition heats up.
For homeowners thinking ahead
In a low-stock market, the challenge isn’t usually selling — it’s buying well. Many households are sitting on strong equity but hesitate because suitable replacement stock is scarce.
In these conditions, the order of decisions (buy first, sell later, or bridge the gap) often becomes just as important as price itself. Getting the sequence right can reduce stress and protect outcomes, even when market conditions are strong.
For investors
Strong markets can disguise weak assets. When prices are rising quickly, the gap between quality properties and average ones isn’t always obvious — but it tends to show up later, when conditions normalise.
Periods like this are well-suited to consolidation and review: understanding what you own, what’s doing the heavy lifting, and where capital might be better positioned for the next phase of the cycle. In many cases, that means prioritising quality, scarcity, and long-term fundamentals over short-term momentum.
Final takeaway
Markets move in cycles, but personal outcomes are shaped by decisions. Whether you’re buying, repositioning, or reviewing, having a clear plan — before urgency sets in — is often the difference between confidence and regret.
If you’d like a calm, no-pressure chat about how this market impacts your next move, you can reach us here: https://www.buyersadvocateperth.com.au/contact-us/
— View all Perth Property Market Updates
— Review the previous Perth Property Market Update here → Perth Property Market Update Q3 2025
Disclaimer
The information shared in this property market update is provided for general informational purposes only and should not be regarded as financial or investment advice. Property markets can fluctuate, and all investments carry risks that may not suit everyone’s personal circumstances or risk profile.
While Buyers Advocate Perth strives to share insights that reflect current market conditions, we cannot guarantee the accuracy, completeness, or future outcome of any scenario described. Past performance is not a reliable indicator of future results.
Readers are encouraged to seek independent professional advice from qualified financial, legal, or accounting experts before making any property or investment decisions based on this content. Buyers Advocate Perth, its directors, employees, and associated entities accept no liability for any actions taken or decisions made relying on this publication.
