EXPERT INSIGHTS SWANBOURNE JUSTIN DAVIES CEO & Founder Scan the code for a current market e-appraisal of your property. spacerealty.com.au Summer Market Wrap As the sun sets on 2025 and we settle into the new year, the Perth property market continues to show no signs of slowing driven by the lack of housing supply and no real immediate solution to alleviate it quickly seeing Perth Property prices continue to rise to new heights. Interest rates The RBA cut the official cash rate three times during 2025, bringing it down to 3.60%. This easing cycle helped support borrowing capacity and buyer confidence through the year. Looking to 2026, economists remain divided. Some major banks now forecast potential rate rises of 25–50 bps as inflation stubbornly sits above the RBA’s 2–3 % target band, while others still see rates holding or modestly easing depending on inflation and labour market dynamics. The best current variable home loan rate is 5.19% Migration Western Australia’s net population is growing faster than any other Australian state, increasing by 65,600 people in the year or 1,261 people per week to June 2025. Finance The Government introduced the 5% Deposit Scheme which has brought forward demand and increased purchasing power at the entry level of the market. This added upward pressure to prices where stock is already limited. Supply Perth’s housing stock remains well below balanced levels with just 1,888 properties advertised on reiwa. com on 31 December 2025, which is 57 per cent less than last year. This is also far lower than the ~13,500 Listings traditionally associated with a balanced market. In comparative terms, the stock levels now at 1,888 are just 14% of what is required for balanced as last seen in 2019 before Covid hit. Building approvals and completions have improved only modestly, and supply continues to lag significantly behind demand. Median price Perth’s median house value has climbed strongly in 2025, with REIWA’s median house price at $842,000 in December. Rental Market Rental conditions remain tight, with vacancy rates currently at 2.5%. Median weekly rents continue to rise, $700 per week in December. Construction costs Rising construction and materials costs, coupled with shortages of skilled tradespeople, continue to inflate build prices and extend timelines. These cost pressures are a key constraint on new supply, particularly for infill and multi-unit projects. With extremely tight stock levels and demand remaining high, Perth’s property values—particularly Swanbourne—are well supported. Whether you’re considering selling, buying, or simply wanting to understand how these trends impact your property, please don’t hesitate to reach out. It’s almost certain your property is worth more than you may think it is.
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