🌸 Spring Property Market Update: What You Need to Know
The flowers are blooming, the birds are chirping, and Perth’s property market is buzzing with activity. Spring is traditionally the hottest time of year for real estate, and 2025 is proving no different. Despite the Reserve Bank of Australia (RBA) holding interest rates steady at its latest meeting, property prices continue to climb—especially here in WA.
🌱 Perth Property Prices on the Rise
According to Cotality’s Daily Home Value Index, Perth led the nation in property value growth over the September quarter, with a 4% increase. That’s the strongest quarterly growth across all capital cities, outpacing Brisbane (3.5%) and well ahead of Sydney and Melbourne.
What’s driving this surge? A significant shortage of listings is creating fierce competition among buyers. In fact, the number of homes for sale in Perth is currently 45% below the long-term average. At the same time, buyer demand remains strong, pushing prices higher.
🏡 Spring Selling Season in Full Bloom
Spring is always a prime time for property transactions, and this year is no exception. With limited stock and high demand, Perth buyers are facing a competitive market. If you’re planning to buy, getting buy ready is more important than ever. It gives you the confidence to act quickly when the right property comes along.
👉 Talk to us today and get ahead of the competition.
📈 Interest Rates: On Hold, But Inflation Lingers
At its most recent meeting, the RBA kept the cash rate on hold at 3.60%. This decision followed higher-than-expected inflation data, with the Consumer Price Index (CPI) rising 3% over the 12 months to August. Underlying inflation (trimmed mean) was 2.6%.
However, recent RBA minutes reveal that interest rate cuts are not expected anytime soon. A big four bank has reaffirmed its view that the RBA will maintain a cautious stance due to persistent inflation pressures. ANZ senior economist Adelaide Timbrell reaffirmed this view, noting:
“We retain our call that the RBA will deliver a final 25bp cut in H1 2026, with February the earliest plausible timing. We then see the cash rate staying at 3.35 per cent for an extended period.”
In other words, rate cuts aren’t likely before early next year.
RBA Governor Michele Bullock noted that while inflation isn’t “running away,” the central bank needs to remain vigilant.
The largest contributors to this rise were housing (+3.6 per cent), food and non-alcoholic beverages (+3.0 per cent), and alcohol and tobacco (+6.5 per cent). Rents rose 3.9 per cent in the 12 months to July, following a 4.2 per cent rise in the 12 months to June, the lowest since November 2022.
State governments ending rebates also led to a jump in the monthly inflation figures. The price of energy spiked 13.1 per cent in July despite prices falling by 6.3 per cent the year prior.
RBA Governor Michele Bullock noted that housing and market services inflation were slightly higher than anticipated, prompting a cautious approach:
“It doesn’t suggest that inflation is running away, but we just need to be a little bit cautious.”
The next RBA decision is due on 4 November, and all eyes will be on whether inflation pressures ease or persist.
💡 Tip: If you haven’t reviewed your home loan recently, now’s a great time to get a book a home loan health check with us.
❓ Is It Worth Looking at Fixed Rates?
With interest rates on hold but unlikely to fall soon, fixed-rate home loans may offer peace of mind for borrowers concerned about future rate hikes. There are some competitive offers around with 1 year fixed rate on owner occupiied loans from 4.65% (5.48% Comparison Rate) and 2 years from 4.75% (5.42% Comparison Rate) Locking in a rate now could protect you from potential increases and help with budgeting. Blog: Should I fix my home loan?
👥 Population Trends & Migration
While Australia’s population growth has eased since Q3 2023—largely due to a normalisation in overseas migration and a low natural increase—growth still remains above long-term averages. Internal migration patterns are also stabilising, with fewer people moving to WA and Queensland, and more heading to Victoria.
Despite this, Perth continues to attract buyers and investors thanks to its relative affordability, lifestyle appeal, and strong rental yields.
🏠 First Home Buyers: Big Boost from the 5% Deposit Scheme
The Australian Government’s 5% Deposit Scheme (formerly the Home Guarantee Scheme) is giving first home buyers a leg up. The scheme allows eligible buyers to purchase a home with just a 5% deposit (plus costs) — without paying Lenders Mortgage Insurance (LMI). Even better, there are no caps on places or income limits, and price caps have increased (up to $850,000 in Perth).
This could add further pressure to prices, especially in entry-level segments of the market.
📊 Auction & Sales Snapshot (as of 30 September 2025)
| State | Auctions | Clearance Rate | Private Sales | Monthly Value Change |
| WA | 19 | 68% | 663 | ▲ 1.6% |
| VIC | 1160 | 67% | 2075 | ▲ 0.5% |
| NSW | 689 | 59% | 2026 | ▲ 0.8% |
| QLD | 249 | 51% | 1287 | ▲ 1.2% |
| SA | 89 | 78% | 342 | ▲ 0.9% |
| ACT | 57 | 74% | 101 | ▲ 0.7% |
| NT | 6 | 50% | 45 | ▲ 1.7% |
| TAS | 0 | 0% | 181 | ▲ 0.1% |
📊 Source: realestate.com.au, week ending 5 October 2025
Perth weekly snapshot
📊 Source: reiwa.com.au, listings week ending 12 October 2025 and market price data 14 October 2025
✅ Ready to Buy in Perth?
With limited stock and strong buyer competition, it’s essential to have your finances sorted before you start house hunting. Whether you’re a first home buyer, upgrader, or investor, we’re here to help you navigate the market with confidence.
📞 Get in touch with Fox Mortgages today and let’s chat about your goals this spring.