Prepare for the next wave in Perth property — explore market trends, the new FHB scheme, and why now may be the time to secure value early.
Spring continues to bring energy to Perth’s already thriving property market. This season, that natural momentum is set to collide with a major policy shift — the expansion of the First Home Buyer (FHB) Scheme from 1 October 2025.
In this blog, we review recent market performance, outline the new FHB policy changes, and explore what these combined forces could mean for property values heading into 2025–26.
Recent Market Snapshot: Q2 and Q3 2025
Supply tightening and rising prices
- Listing volumes remain low, with house listings down approximately 6.4% year-on-year and units down 13.1%.
- Value growth is solid, with dwelling values rising 0.9% month-on-month in July, 2.6% for the quarter, and 6.5% year-on-year, bringing the median to around $831,921.
- Houses gained approximately 6.0% annually, with a median of about $869,689.
- Units outperformed, climbing 10.4% over the past year and 2.7% in the last quarter.
The combination of low stock levels, continued migration, and strong rental yields is creating sustained upward pressure across much of the Perth metro area.
The New First Home Buyer / Home Guarantee Scheme (From 1 October 2025)
What’s changing:
- Lower deposit threshold: First home buyers can now enter the market with as little as a 5% deposit.
- Income caps removed: Higher earners can now access the scheme.
- Higher property price caps: Perth’s metro cap has lifted from $600,000 to $850,000.
- Unlimited places available: The program is no longer limited by quota.
What it means for the market:
- A wave of new buyers entering the market, particularly in the $500K–$850K price band.
- Increased competition for existing stock, especially in family-friendly suburbs and newer estates.
- Potential 8–10% price growth forecast over the next 12–18 months as demand intensifies.
- Pressure on supply and valuations, likely to accelerate transaction timelines.
Forward Outlook 2025 / 2026 and Beyond
Perth remains one of Australia’s most resilient and dynamic property markets. Forecasts from major banks and analysts project continued growth between 4% and 7% through 2025, with tighter supply and strong population inflows underpinning long-term strength.
Given the demand surge expected from the FHB changes, capital growth of 8–10% across select segments is realistic over the next 18–24 months. Affordable family homes and quality units within commuting distance of the CBD are likely to see the strongest uplift.
Investor strategy pointers:
- Target suburbs under $850K where buyer demand will concentrate.
- Prioritise rental yield, as Perth’s low vacancy rate keeps returns attractive.
- Move early to secure equity growth before another price leap.
- Leverage professional insights to identify pockets of undervalued opportunity before mainstream demand hits.
Lock in value before the next upward wave, chat with us today.
Our team can help identify the right suburbs and properties positioned to benefit most from the next phase of Perth’s growth cycle.
The information provided in this blog is for general informational purposes only and does not constitute financial, legal, or tax advice. While we strive to ensure accuracy, we make no guarantees regarding the completeness or reliability of the information. Readers should seek independent professional advice from a qualified financial, legal, or tax advisor before making any investment decisions. We accept no liability for any loss or damage arising from reliance on this content.
