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In Perth, “other dwellings” led price growth in the March quarter, while house sale prices fell as residents opted for affordable alternatives.
A new report from the Real Estate Institute of Australia (REIA) has shown that the median sale price for other dwellings led Perth’s sale price growth in the March 2025 quarter.
Data showed that the median sale price for other dwellings, which include units, townhouses, flats/apartments and terrace homes, increased by 2.8 per cent over the quarter, and 19.4 per cent over the year to $555,000.
In contrast, the Real Estate Market Facts report found that the median sale price for houses declined 1 per cent over the March quarter to $790,000, but was 14.5 per cent higher than last year.
Across the metropolitan areas, Perth Middle, Inner, and the Outer regions saw a rise in other dwelling median sale prices over the March quarter.
Perth Middle’s median sale price was up 3.6 per cent to $570,000 across the quarter, marking a 23.9 per cent annual growth.
Similarly, Perth Inner’s sale increased by 3.3 per cent to $599,000 in the quarter, with the region recording an annual median sale price growth of 14.1 per cent.
Finally, Perth Outer’s median sale price rose 2 per cent to $489,500 across the quarter, as the area saw an annual median sale price increase by 18 per cent.
Real Estate Institute of Western Australia (REIWA) president, Suzanne Brown, said that the continuous increase in house prices has led buyers seeking more affordable alternatives to consider other dwellings, despite the rising prices.
“Other dwellings are generally more affordable than houses, especially in areas close to the CBD and key lifestyle attractions, and demand for these types of homes has increased, putting strong upward pressure on prices,” Brown said.
“However, despite the increase over the past year, Perth remains one of the most affordable capital cities for other dwellings, with only Darwin recording a lower median sale price,” she added.
Brown said that the 1 per cent decline in house sales prices does not mean that the Perth market is slowing down.
“A review of that data shows that at the start of the quarter there was a large drop in house sales in higher price brackets, particularly in the million-dollar-plus bracket. This change in activity can see the overall median decline,” she said.
“The conditions underpinning price growth persist, with our population still growing strongly and relatively low new home completions, so we can expect the Perth median price to increase over the remainder of the year,” she said.
Similarly, data showed that the median weekly rent for other dwellings grew over the quarter, with two-bedroom dwellings increasing by 4.8 per cent to $650, an 8.3 per cent increase over the past 12 months.
While the median rent for three-bedroom houses in the March quarter remained unchanged at $650 from the December quarter, it recorded an 8.3 per cent annual increase.
Brown said the Perth rental market proved to be maintaining record periods of stability, intermixed with small developments in median prices.
“The rate of rent price growth has slowed, which reflects the changed conditions in the rental market over the past year,” she said.
“However, as with the sales market, conditions vary from suburb to suburb. There are some suburbs, such as those closer to the CBD or popular lifestyle hubs, where competition for rental properties remains high and the vacancy rate is under 1 per cent.”
“In these areas, the upward pressure on rent prices remains strong,” she concluded.
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