Perth market stays hot as interest rates drop
Perth’s property market isn’t just holding strong, it’s thriving. Fresh data and a welcome drop in interest rates show why Perth continues to be one of the hottest markets in Australia right now.
With sellers pocketing six-figure gains and interest rates on the slide, Perth continues to outperform almost every other capital city. Whether you’re buying, selling, or simply curious about your home’s value, it pays to plug in to what’s happening on the market right now.
Perth sellers are cashing in
Domain’s latest Profit and Loss Report is a big confidence boost for local homeowners:
- 99% of house resales made a profit
- Median gain: $339,000
- Annual growth: up 22.4% year-on-year
- Only 1% of sales recorded a loss (median loss $62,000)
Units are holding strong too, with 97% of resales turning a profit – among the best results in the country.
For sellers, it’s a dream scenario: strong demand, rising values, and almost every resale putting money back in your pocket. That profit could be used to fund a bigger family home, finally making the sea change you’ve been planning, or paying down debt and securing your financial future. With so many resales delivering a windfall, Perth homeowners are turning property moves into life moves.
Why Perth is winning
So, what’s driving these results? A few key factors keep Perth ahead of the pack:
- Population growth is fuelling demand as more people choose WA for lifestyle and work.
- Low housing supply means competition for quality homes remains fierce.
- High rental yields are attracting investors, keeping pressure on prices.
- Local confidence is snowballing – when neighbours sell big, more homeowners list.
From beachside suburbs to inner-city apartments, the story is the same: limited supply, strong demand, and values holding firm. Perth remains more affordable than Sydney and Melbourne, but with growth that rivals the east coast. Our unique balance of lifestyle and value is keeping WA at the top of buyer wishlists.
Rate cut adds fuel to the fire
As if record profits weren’t enough, the Reserve Bank just dropped the cash rate to 3.60% (as of 13 August 2025).
For many households, this means:
- Lower repayments if you’re on a variable rate loan (your lender should pass on the cut soon).
- More borrowing power for buyers entering the market.
- Confidence to act – lower rates historically bring more buyers off the sidelines.
Fixed rate borrowers won’t see changes immediately, but it’s the perfect time to review your strategy and prepare for when your term ends.
The big takeaway? More buyers, more competition, and more demand for Perth homes.
What it means for you
Whether you’re selling, buying, or investing, here’s how to think about today’s market:
- Sellers – The conditions couldn’t be better: record-breaking profits, high buyer demand, and strong growth across both houses and units.
- Buyers – Lower rates open doors, but speed matters. Homes in Perth are selling quickly, and competition is only set to rise.
- Investors – Perth continues to offer one of the best combinations of capital growth and rental returns in the country.
Perth’s outlook for the rest of 2025
Looking ahead, the signs remain strong:
- Buyer demand is expected to increase as rates ease.
- Tight supply will keep pushing prices up.
- The rental market remains competitive, supporting investor confidence.
Perth is showing no signs of cooling – and those who act now stand to benefit most.
Final word
At Xceed, we believe the best decisions come from insight, not guesswork. Whether you’re a seller ready to capitalise, a buyer looking for your next home, or an investor planning your portfolio, the Perth property market right now is full of opportunity.
With record profits, falling rates, and demand on the rise, there’s never been a better time to understand your position and make your move. And we’re here to make it happen.