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Perth Surpasses Melbourne: A Power Shift in Australia’s Property Market

For the first time in over a decade, Perth has outperformed Melbourne in terms of median home value, a significant development redefining the property market. This turning point, recorded in May 2025, highlights the growing demand for Western Australia among property buyers, investors, and renters alike.

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A Decade-Long Rise Comes Full Circle

As of the second quarter of 2025, Perth's median home value climbed to $787,000, edging ahead of Melbourne's $782,000. This shift marks the culmination of a five-year stretch where Perth transitioned from being a more affordable option to becoming one of the nation's leading capital city markets. Previously, Perth homes were priced nearly 40% lower than their Melbourne counterparts.

This shift isn't merely statistical. It reflects sustained buyer confidence in WA's housing market, supported by long-term growth and resilience.

What Fuelled Perth's Rapid Growth

Perth's rise has been powered by four core dynamics working together to elevate its appeal.

First, the affordability gap between Perth and the eastern capitals offered excellent value. Buyers seeking cheap houses for sale or dual living homes for sale found compelling options in WA.

Second, rental demand soared. With extremely low vacancy rates and fast-rising rents, Perth became a magnet for investors looking for strong yields and stable returns from investment property for sale.

Third, population growth surged as both interstate and overseas migrants turned to Perth for lifestyle and economic opportunity.

Finally, supply failed to keep up with demand. Ongoing labor shortages and delays in building materials caused a slowdown in the construction of new house and land packages.

Benefits for Investors and Renters

In Western Australia, the rental market remains exceptionally tight. Revoy has seen growing interest from tenants seeking houses for rent near me, pet-friendly rentals, and furnished apartments for rent across the Perth region.

For renters navigating the lease agreement process or managing rental bond responsibilities, Revoy simplifies the experience with responsive management and digital support. This demand also reinforces why many investors are capitalising on the city's attractive returns.

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Buying Into Perth's Momentum

For first-time buyers, Perth represents opportunity. Its diverse housing options include new houses for sale, townhouses for sale, and properties with desirable features such as outdoor space or flexible layouts.

With Revoy's Home Loan Calculator and Mortgage Calculator, buyers can confidently assess borrowing potential. Many are also benefiting from First Home Buyer Grants Australia 2025, helping them step onto the property ladder sooner.

Victoria's Changing Investment Landscape

In contrast, Victoria's property market is contending with a different set of challenges. Increased property taxes, regulatory changes, and higher holding costs have impacted investor sentiment.

Some landlords are reassessing their positions and exiting the Melbourne market in favour of cities with more attractive conditions. This trend has led to more listings, including auction properties in Sydney and Melbourne, while Perth continues to tighten.

A Seller's Market in WA

For homeowners in Perth wondering, "How much is my house worth?", this is a promising moment. Property valuation reflects a sharp rise in demand for WA homes. If you're considering a move, the best time to sell property could be now.

What's Ahead in 2025

Looking toward the remainder of the year, Perth's growth may moderate, but underlying fundamentals remain strong. A tight housing supply, continued population increase, and likely reductions in interest rates all signal further resilience.

The Property Market Forecast 2025 identifies emerging opportunities beyond the prominent locations. With demand expanding, regional property and the planned apartments in development zones are attracting attention from savvy buyers and investors.

About Revoy

Revoy offers more than just listings; we deliver a full-service property experience tailored to today's market. Whether you're looking for houses for sale, managing your investment property, or exploring downsizing options, Revoy combines luxury service with digital innovation.

Our platform also provides a wide range of financial solutions, including car loans, equipment finance, refinancing, and property investment. With access to over 15 banks and lenders, we help our clients secure competitive rates and make smarter financial decisions.

Get in Touch with Revoy

Whether you're buying your first home, listing your investment, or searching for the next big opportunity in real estate, Revoy is here to guide you.

We specialise in everything from dual living homes for sale to custom house and land packages and beyond. Ready to take the next step? Let our expert team support your vision.

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