National increase in property values
In February, residential property values across Australia experienced a slight 0.3% increase. Melbourne and Hobart recorded the strongest growth, each rising by 0.4%, followed closely by Perth, Sydney, and Adelaide, which saw a 0.3% increase. Brisbane and Canberra recorded a more modest rise of 0.2%. Darwin was the only city to experience a decline in dwelling values, with a decrease of 0.1% (CoreLogic, 2025).
Following a slight contraction in January, Perth’s 0.3% monthly increase reflects its continued strong market performance. The city’s annual growth now stands at an impressive 14.3% – the highest in the nation (CoreLogic, 2025).
Low housing stock levels continue
According to the Real Estate Institute of Western Australia (REIWA), there were 4,829 properties listed for sale during the week ending 2 March 2025 in WA. This marks a slight decrease from the 4,864 listings recorded four weeks earlier, but an increase from the 3,962 listings during the same week last year. Despite this annual rise, the number of listings remains significantly below the 13,500 typical of a balanced market.
The average time to sell a house in Perth decreased to 13 days in February 2025, which is 4 days shorter than the same period last year, suggesting strong buyer demand throughout the month. Similarly, the time to sell a unit has also been shortened, reaching 12 days during this period. (REIWA, 2025)
The graph below illustrates the continued decline in stock availability within the Perth market through the week ending 2 March 2025.
Source: REIWA and Momentum Wealth Research
Vacancy rate reaches highest level since 2020
According to REIWA, Perth’s median rental dwelling price rose to $675 per week in February 2025, reflecting an 8.0% increase from the same period last year. The median rental price for houses is $680 per week, with median unit rents at $650 per week. Rental prices have remained stable in recent months, indicating the market may have reached its affordability threshold.
During the week ending 2 March 2025, 2,016 properties were listed for rent in Perth – a decrease from 2,142 listings four weeks earlier, but an increase from the 1,683 listings recorded at the same time last year. (REIWA, 2025)
Perth’s vacancy rate rose to 2.3% in February. While vacancies have increased in recent months, they remain below the 2.5-3.5% range expected of a balanced market. During February, it took a median of 15 days to lease a property, consistent with 12 months prior. (REIWA, 2025)
The graph below shows the number of homes available for rent and Perth’s vacancy rate to the week ending 2 March 2025.
Source: REIWA and Momentum Wealth Research
Darwin, Hobart and Perth record highest rental yields
Across Australia, Darwin recorded the highest gross rental yield at 6.7% in February, outperforming all other capital cities. This was followed by Hobart (4.4%) and Perth (4.3%). In contrast, Sydney recorded the lowest yield at 3.1%. The graph below shows the gross rental yields across the capital cities for February 2025. (CoreLogic, 2025)
Source: CoreLogic
National unemployment rates see modest increase in January
Australia’s national unemployment data provides key insights into business sentiment and economic confidence, with lower unemployment rates often signalling stronger economic conditions.
At the end of January 2025, the national unemployment rate had risen to 4.1%, partly due to a high number of people waiting to start new job opportunities in the new year, following similar trends recorded in previous years. Despite this increase, the national rate remains well below the COVID-19 peak of 7.0% in July 2020. (ABS, 2025)
Victoria and the Northern Territory had higher unemployment rates at 4.7% and 4.5% respectively, while the Australian Capital Territory recorded the lowest rate at 3.2%. Western Australia and Tasmania both had rates of 3.6%. (ABS, 2025)
The graph below shows the unemployment rate for each state and territory as of January 2025.
Source: ABS
Recommended
From first investment to multi-property portfolio in under 2 years
Supply-demand imbalance to drive Perth property growth in 2025
Rental property management fees in Perth – are you getting value?
First-time investors secure a high-yield property in a competitive market
Succession planning: How to future-proof your property portfolio