Welcome to August, with the surprising decision last mont by the RBA not to cut rates and the latest inflation data showing further decline, economists are predicting that the RBA will have no option but to cut rates this month. The property market saw all capital cities record an increase, Darwin leading the way with a 2.2% increase and Perth increasing further with a rise of 0.9% in July according to the latest Cotatility report.
📊 Market Snapshot: Perth vs. National
| Metric | Perth Metro | Australia Median |
|---|---|---|
| Monthly Price Growth | ↑ 0.8% | ↑ 0.6% |
| Annual Growth | ↑ 6.5% | ↑ 3.7% national (Cotality) |
| Median House Price | $832k | $926k |
| Days on Market (Perth) | 13 days | — |
| Weekly Rent (Houses) | $690 | — |
| Listings YoY (Perth) | ↓ 5.8% | — |
Perth continues it’s growth, with annual price rises more than double the national average. Source: Cotality Hedonic Value Index.
Perth Weekly Snapshot
Source: REIWA: Perth market insights market snapshot (week ending 27th July)
🏠 Key Growth Drivers in Perth
- Chronic supply constraint: New listings remain well below trend, particularly in outer suburbs. Properties in suburbs like Duncraig, Joondalup, and Baldivis are selling faster than ever.
- Strong investor activity: Rental yields remain high, rental inflation sits at around 11% YoY, and vacancy rates remain low.
- Relative affordability: Perth’s median price remains significantly cheaper than Sydney’s (A$1.2M), still making it attractive for interstate buyers. Land Sales
“Perth’s combination of affordability, rental returns and demand makes it a national standout right now.”
— Cotality Research Team, August 2025
📉 Interest Rate Outlook & Inflation Update
- July RBA decision: Rates held at 3.85% during the July meeting held on 7–8 July.
- Economic indicators:
- Headline CPI is down to 2.1%, with trimmed mean at 2.7%, both now within the RBA’s target range.
- Unemployment has risen to 4.3%, its highest since mid‑2023.
- Market positioning: Futures markets assign a ~95% probability of a 25bps cut at the August (11–12) RBA meeting, trimming the cash rate to approximately 3.60%.
- Possible path forward: Economists forecast further cuts in November and February, potentially lowering the cash rate to 3.1% by mid‑2026.
🎯 What It Means for You
Buyers:
The combination of rising prices and falling rates means now is a strong time to secure financing—especially ahead of further interest rate cuts.
Homeowners & Refinancers:
Refinancing could unlock substantial savings: a 25bps cut alone may reduce monthly repayments by $80‑100 per month on a $600K loan.
Investors:
Perth continues to deliver market-leading rental returns, with demand outpacing supply. Suburbs showing strong capital and rental growth include Ridgewood, Clarkson, Baldivis, and Armadale.
✅ Strategy at a Glance
- Act early: With prices rising and rate cuts coming, getting pre‑approval now gives you room to move with confidence.
- Refinance smart: Explore current variable and fixed-rate offers— many lenders are reducing fixed rates ahead of official rate changes.
- Invest with intent: Choose suburbs with strong fundamentals; Perth’s growth momentum remains underpinned by limited stock and buyer demand.
✅ Let’s Chat About Your Next Move
At Fox Mortgage Services, we specialise in helping WA buyers and investors make confident, informed decisions. Whether you’re planning to purchase, refinance or expand your portfolio, we’re here to simplify the process and support you every step of the way.
📞 Contact us today to explore your options — before the next rate cut lands.
Sources & Credits
- Cotality Home Value Index Report – August 2025
- REIWA Perth Metro Market Data – June/July 2025
- The Australian, Reuters, Aussie News – National price & inflation insights
