COTTESLOE INSIGHT | SUMMER 2025 Justin Davies 0419 909 350
Summer Market Wrap As the sun sets on 2025 and we settle into the new year, the Perth property market continues to show no signs of slowing driven by the lack of housing supply and no real immediate solution to alleviate it quickly seeing Perth Property prices continue to rise to new heights. Interest rates The RBA cut the official cash rate three times during 2025, bringing it down to 3.60%. This easing cycle helped support borrowing capacity and buyer confidence through the year. Looking to 2026, economists remain divided. Some major banks now forecast potential rate rises of 25–50 bps as inflation stubbornly sits above the RBA’s 2–3 % target band, while others still see rates holding or modestly easing depending on inflation and labour market dynamics. The best current variable home loan rate is 5.19% Migration Western Australia’s net population is growing faster than any other Australian state, increasing by 65,600 people in the year or 1,261 people per week to June 2025. Finance The Government introduced the 5% Deposit Scheme which has brought forward demand and increased purchasing power at the entry level of the market. This added upward pressure to prices where stock is already limited. Supply Perth’s housing stock remains well below balanced levels with just 1,888 properties advertised on reiwa. com on 31 December 2025, which is 57 per cent less than last year. This is also far lower than the ~13,500 Listings traditionally associated with a balanced market. In comparative terms, the stock levels now at 1,888 are just 14% of what is required for balanced as last seen in 2019 before Covid hit. Building approvals and completions have improved only modestly, and supply continues to lag significantly behind demand. Median price Perth’s median house value has climbed strongly in 2025, with REIWA’s median house price at $842,000 in December. Rental Market Rental conditions remain tight, with vacancy rates currently at 2.5%. Median weekly rents continue to rise, $700 per week in December. Construction costs Rising construction and materials costs, coupled with shortages of skilled tradespeople, continue to inflate build prices and extend timelines. These cost pressures are a key constraint on new supply, particularly for infill and multi-unit projects. With extremely tight stock levels and demand remaining high, Perth’s property values—particularly Cottesloe—are well supported. Whether you’re considering selling, buying, or simply wanting to understand how these trends impact your property, please don’t hesitate to reach out. It’s almost certain your property is worth more than you may think it is. EXPERT INSIGHTS COTTESLOE JUSTIN DAVIES CEO & Founder Scan the code for a current market e-appraisal of your property. spacerealty.com.au
MARKET INSIGHTS COTTESLOE Lowest & Highest Sales Cottesloe Median Price *This data has been sourced from REIWA.com.au, RP Data Cotality and Pricefinder. Whilst all efforts have been made to ensure the data is accurate Space Real Estate will not be liable for error or admissions herein. Median Price $2.5m $5m $7.5m $12.5m $10m $15m $12,800,000 Highest Sale House Properties for Sale Properties Sold Days on Market $3,210,000 17 31 26 $1,380,000 Units $0 $500k $1m $2m $1.5m $2.5m $3m $3.5m 2017 2018 2019 2020 House Units 2021 2022 2023 2024 2025 $620,000 Lowest Sale
JUSTIN DAVIES M 0419 909 350 E justin@spacerealty.com.au Highest Average Sale Price in WA 2025 - Justin Davies - 1st 2024 - Justin Davies - 2nd 2023 - Justin Davies - 1st 2022 - Justin Davies - 1st Justin Davies achieved Cottesloe and Swanbourne Highest Sales for 2018, 2019, 2020, 2021, 2023 & 2024 WA’s #1 - Top 1% Agent - Proven Over 16 Years. The only WA agent REIWA has awarded the top 1% for 14 of 16 years.
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