Buy, Sell Or Hold? A Forecast For Property Investment In Perth

Saturday, 8th of November 2025

If you’re a savvy investor with a keen eye for spotting and capitalising on emerging opportunities, the Perth property market remains one to watch in 2026 and beyond. While the pace and growth of property investment in Perth has been moderated compared to the record surges of past years, strong fundamentals continue to drive demand.

The market continues to provide an opportunity for investors. Property values are still on the rise, and forecasts suggest steady growth ahead. We’ve reviewed the latest trends and projections for the next 5 years to help you make an informed decision. 

Emerging Opportunities For Investors

Perth’s strong fundamentals, including population growth, a resilient economy, and low unemployment, continue to make property investing an attractive option.

While price growth has stabilised after the rapid increases seen post-pandemic, experts are still forecasting 5–10% growth over 2025. This steady momentum presents numerous opportunities for investors to take advantage of the current market, whether by expanding their portfolios or reconsidering rental prices to maximise returns on existing properties.

The question is then how to make the most of the market as it is now? Do you sit tight and continually improve your rental returns so that your tenants help you pay off your mortgage?

Do you sell now to top up your capital, with a view to potentially invest at a later stage?

Or do you acquire more properties to boost up your portfolio and add to your ongoing returns.

There really is so much to think about…

 

 

Aligning Your Investment Goals

Your next steps as an investor within the primed Perth market, all comes down to the simplistic notion of “What do you want to achieve from your investment property?”

Whilst it may seem obvious, this question dictates where to take your next investment decision, which can be broken down into the following options:

Long term goals:

• Building your capital by holding onto your property now for a future sale later.
• Adding to your investment portfolio ahead of forecasted growth in property values.
• Maintaining a cashflow positive investment with healthy ongoing rental returns.

Short term goals:

• Selling your property to make immediate profits back from your property sale.
• Increasing your rental returns to match demand and maximise current profits.

Our team at Perth Property Management make sure to work with investors to strategise the best approach, however the conversation begins with the above considerations. Unsure of where you sit or your current options? We welcome you to book a strategy session with us.

 

To Sell Or Not To Sell, That Is The Question

The housing market has consistently proven to be fruitful for investors playing the long game, so undertaking a buy now/sell later approach is a tried-and-tested strategy that has worked for decades. It must also be said that a prerequisite of this form of strategy is most definitely patience and a mindset of delayed gratification.

Property Investment in Perth Requires Patience

In the wise words of business magnate and seasoned investor, Warren Buffett, “Our favourite holding period is forever.” which indicates that time is a valuable asset for patient investors.

Whilst sitting on property can be a risky stance due to the unpredictability of future events, the resilience of the Perth property market cannot be underestimated. We’ve also come to a stage in the market where prices seem to be stabilising – providing more predictability.

Despite global challenges like COVID-19, the market remained robust, with Western Australia leading the nation in property growth during the pandemic. This growth has carried on through 2025, with prices now exceeding pre-pandemic levels and showing little sign of slowing.

Where much of Australia saw significant price corrections, Perth’s correction was minimal. In fact, the city’s growth over the last two years, combined with a 303% increase in median house prices since the early 1990s, offers a compelling case for investors looking at the long-term benefits of holding property.

With WA’s population projected to grow by over 80,000 people annually over the next five years and new housing supply lagging well behind, demand for rental accommodation is expected to remain high. This is forecast to place upward pressure on rental prices, with REIWA predicting consistent rental growth through to 2030.

The Perth Rental Market

For landlords, demand remains exceptionally high, with vacancy rates well below 1% (among the lowest in the country) and strong rental yields of 5–6%. This makes rental properties a highly attractive option for investors seeking consistent returns. We are also continuing to see rental price growth, with median weekly rents for dwellings increasing by 3.8% over the last year.

While the pace of rental price growth has steadied slightly more recently, this aligns with the slowing in property sale prices, which means rental income remains a stable and reliable source of return. For long-term investors, this steady growth is far more predictable and manageable than the volatility seen in property price fluctuations.

Recent rate cuts by the RBA, have offered some relief to property investors facing tighter lending conditions. With economists predicting a stable or slightly decreasing interest rate environment through 2026, investors are likely to see improved affordability and increased borrowing confidence especially in rental markets where demand continues to rise.

While the Federal Government has committed to building 1.2 million new homes nationwide by 2029, the reality is that supply bottlenecks, rising construction costs, and skilled labour shortages continue to delay delivery, especially in Western Australia. This makes existing rental properties an increasingly scarce and valuable asset, particularly for landlords looking to maximise long-term gains.

Should I invest in a rental property?

For those looking to invest in rental properties, the Perth market remains exceptionally strong. With vacancy rates under 1% and rental yields of 5–6%, it offers a safe and stable option, especially in today’s more unpredictable environment. As property price growth slows, rental income has become an increasingly reliable source of return, providing consistent cash flow. The combination of high demand, strong rental growth, and low vacancy rates makes rental properties a solid choice for long-term investors seeking stability. Whether you’re just starting your investment journey or looking to add to your portfolio, the Perth rental market continues to be a safe bet in 2026.

Should I sell my rental property?

If you’re contemplating selling your investment property in today’s market, it’s important to consider the opportunity cost. Selling now could mean losing out on valuable rental income, especially when vacancy rates are low and demand is high. With the current pace of property price growth slowing, a long-term rental strategy might be a better choice than chasing short-term capital gains through selling.

Rental Property Outlook

The long-term outlook for Perth property rental rates remains positive, driven by the city’s strong economic fundamentals and its resilience compared to the rest of the Australian market. As a result, holding onto rental properties could continue to offer solid returns for years to come.

 

Still Unsure Of What To Do Next?

Whilst there is no right or wrong answer about how to capitalise on the current investment property market throughout the Perth suburbs, it pays to ensure your strategy is aligned to your goals. Whether or not these are short term, long term or a blend of both, the team at PPM are experienced in working closely with our investors to set up and implement customise investment strategies that get results – in fact we often exceed our clients’ expectations.

If you’re unsure of your next steps in the current Perth property market, we welcome you to contact us for a rental appraisal or strategy session today. You may wish to also request a chat with our Director, Kristy Copping, who has been awarded Property Manager Of The Year on both a state and national level numerous times as outlined in our property management awards summary.

If you’re ready for a chat, we look forward to hearing from you!