When Will Perth Property Market Pick Up? A Clear Look at Growth Triggers

Introduction

I’ve been following the situation in Perth’s housing market for a while now, and I’ve noticed a lot of people asking. When will the market pick up? We’re talking about the city of perth property market in Western Australia, where buyers, sellers and investors are all trying to read the signs. The good news is: we have real data and trends to go by. This article pulls together what we know, what could change, and what to watch if you’re trying to time the market.

What’s the current mood in the market

They say a market is picking up when sales start increasing, prices begin climbing, and more people feel confident to buy. In Perth’s case:

• We’ve seen strong recent growth. For example, the median house price rose sharply in 2024.

• At the same time, things are showing signs of moderation growth is expected to still be strong, but not at the same pace as the recent boom.

• The supply of homes is still tight, and the rental market is strong (low vacancy, rising rents) which adds pressure to the market.

So, the market is already “picking up” in a sense. The question is more about when it reaches a more sustained, broad-based lift.

Key factors working in favour of growth

We can break down several drivers that suggest the market in Perth has upside potential:

1. Population growth: Perth and WA are seeing people moving in, partly because prices are still more affordable compared to Sydney or Melbourne.

2. Tight supply: When there are fewer properties available, competition tends to push prices up. Perth has this going on.

3. Strong economy & jobs: With good employment conditions, more people feel confident to buy. That helps the housing market.

4. Affordability relative to other markets: For many, Perth is still seen as the better value among major cities. That draws interest.

Because of these factors, I believe the market is in a favourable position and is ready for further pickup.

What needs to happen for a bigger lift

We’ve got the positive foundation, but there are still elements that need to align for the property market to truly pick up in a sustained way. Here’s what to keep an eye on:

• Interest rates: If rates fall or become more favourable for borrowers, that tends to unlock demand. Without that, many buyers stay on the sidelines.

• More listings: A pickup isn’t just about high demand it’s easier to see momentum when sellers list more homes, giving more choice and creating activity.

• Consumer confidence: When buyers believe the market is moving, they act. Hesitation slows things down.

• Affordability balance: Even in a “picking up” market, if prices jump too fast, buyers get priced out and the momentum stalls. That’s a risk.

When these align, the market tends to accelerate.

Timing the pickup: when exactly could it happen?

If I were to put a finger on the timeline for when the Perth market picks up more noticeably, here’s how I’d frame it:

• In the short-term (2025): The market is already strong, but growth might moderate compared to recent highs. For instance, some forecasts expect 5-10% growth in 2025.

• Mid-term (2026-2027): This is where I expect the more pronounced pickup to occur if the drivers above align (rates dropping, listings increasing). Historical cycles suggest Perth has more room to run.

• Long-term: Beyond that, we’re looking at a steadier, sustained growth phase rather than a sharp boom.

So, if you’re asking “when will Perth’s property market pick up?”, I’d say it already is picking up modestly now, with a more pronounced stage likely in the next 12-24 months.

Where in the city is it strongest

We’re not talking about a uniform pickup across every suburb. Some areas are leading the way:

• Outer growth areas and coastal suburbs are showing strong interest because they offer lifestyle plus relatively better value.

• More affordable units or homes under median price are getting more attention as buyers try to get in at entry points.

• Suburbs with good infrastructure, transport links, and amenities tend to outperform.

If you’re watching for the pickup, pickups in these “stronger” pockets often happen first.

Risks and things that could delay the pickup

I wouldn’t be doing this justice if I didn’t talk about what might hold the pickup back:

• If interest rates stay high or go up, borrowing becomes harder, and demand could stall.

• If new supply floods the market, especially in units or lower-cost homes, the balance could shift and price growth could slow.

• If migration or job growth slows in WA, the underlying demand could weaken.

• If affordability becomes too stretched for many buyers, that could dampen the activity.

These risks don’t mean a pickup won’t happen, but they could delay it or change the shape of it.

What this means for buyers and investors right now

Here’s my take for different players:

• Buyers: If you’re looking to buy, now may be a good time to act, especially in good suburbs. Waiting might mean facing higher prices. Also, buying earlier in the pickup means less competition later.

• Investors: The tight rental market in Perth means yields are still attractive. But you’ll want to pick the right suburb and property type. The pickup will reward smart rather than speculative plays.

• Sellers: If you have property, you’re in a good position but you don’t want to assume prices will double overnight. The growth is there, but it will likely be more moderate.

• Watch for changes: Especially interest rates, listings volume, and government policy. These will influence the timing and scale of the pickup.

How to watch for signs that the market is picking up

You’ll want to keep an eye on a few indicators:

• Time on market: If homes start selling faster again, that’s a sign. In Perth, markets are already pretty quick, but if the time drops further, that means increased demand.

• Listing numbers: If more homes are listed and snapped up quickly, that shows activity.

• Price movement: While growth is already happening, an uptick in growth rates can signal the “next phase”.

• Interest rate policy: A cut or more favourable borrowing terms can be a trigger.

• Vacancy and rental yields: Lower vacancy and higher rents typically point to strong demand, which supports property prices.

When you see several of these happening together, you’ll know the market is gaining momentum.

Final Thoughts

So to wrap up the Perth property market is picking up already in many ways. The fundamentals are solid and favorable. What we’re waiting for is a stronger, broader phase of pickup. That’s likely to unfold in the next year or two, provided interest rates ease, supply remains tight, and demand holds up. If you’re thinking about entering the market—either as a buyer, investor or seller now is a good time to prepare, position yourself well and keep monitoring the key indicators.