Perth property boom slows down as house prices drop from their peak.

According to the latest data from CoreLogic, Perth home values (both houses and units) rose a modest 0.2 per cent last month to hit a median $806,205

Perth home values had been at the forefront of the five-year growth cycle among the capital cities, climbing 75.4 per cent since March 2020, with tight supply conditions expected to support continued value increases.

While prices are still trending upward, the rate of growth has clearly slowed, particularly in Perth, where recent downward adjustments have left values just below the October 2024 peak, sitting at -0.05 per cent.

Despite a slowdown in population growth, the ongoing shortage of housing stock will take time to resolve. Construction costs remain elevated, posing continued feasibility issues for builders and developers, and competition for skilled trades from the infrastructure sector is expected to remain strong for several more years.

REIWA President Suzanne Brown said shifting market conditions had led to a rise in the number of properties listed for sale in Perth, with 5,082 homes on the market in March. This marked a 4.8 per cent increase from the end of February and a significant 41.5 per cent jump compared to the same time last year.

“Population growth has been slowing … from the peak of 3.4 per cent in the year to September 2023 to 2.5 per cent in the year to September 2024,” she said.

“There is still strong demand for property, but … frenzied conditions of early 2024, when properties were selling in a median of nine days and there were less than 3600 listings on the market, have eased.”

According to REIWA, Perth’s median house sale price rose by 1.2 per cent in March to $766,500. (This figure is slightly lower than the CoreLogic median, which includes both houses and units, whereas REIWA’s data reflects houses only.)

This was 20 per cent higher than March 2024.

The median unit sale price also increased, rising 1.2 per cent over the month and 20 per cent year-on-year to reach $516,000.

REIWA President Suzanne Brown indicated that price increases are not anticipated to stop in the short term.

The suburbs that experienced the highest median house price growth in March included:

• Fremantle: up 3.5 per cent to $1.345 million
• Yokine: up 3.3 per cent to $1.017 million
• Kensington: up 2.9 per cent to $1.325 million
• Hillarys: up 2.5 per cent to $1.396 million
• Mandurah: up 2.4 per cent to $545,000

Kardinya, Ocean Reef, Aveley, Bicton, and Hamilton Hill also ranked among the top performers, with growth of 2.2 per cent or more over the month.

Houses in Perth sold in a median of 13 days in March, remaining unchanged from February but four days slower than the same time last year.

The fastest-selling suburbs for houses in March included:

• Willagee and Hammond Park: six days
• Craigie, Orelia, Palmyra, and Parmelia: seven days
• Lakelands, South Yunderup, Armadale, and Cooloongup: eight days