Western Australia’s Real Estate Market: What You Need to Know in Mid-2025
Western Australia’s property market is experiencing a dynamic phase in 2025, marked by rising home prices, tight rental conditions, and shifting buyer and investor behaviours. Whether you’re considering buying, selling, or investing, here’s a snapshot of the current landscape.
Perth’s Property Prices on the Rise
Perth’s median house price has reached $780,000, reflecting a steady upward trend over the past year. This growth is attributed to sustained demand, limited supply, and a robust local economy. The Real Estate Institute of Western Australia (REIWA) reports that Perth’s median house and unit prices continue to rise, indicating a healthy market.
Distressed Sales Remain Low
Despite national concerns, Western Australia has seen a 9.6% decline in distressed home listings over the past month. This suggests that the market is relatively stable, with fewer forced sales compared to other regions. SQM Research attributes this trend to proactive measures by banks and a resilient local economy.
Rental Market Tightens
The rental market in Perth is experiencing low vacancy rates, with only 2,375 homes and units available for rent in the last week of May 2025. This indicates a competitive environment for renters, with limited options and upward pressure on rents.
Regional Markets Show Mixed Trends
While Perth’s market remains strong, some regional areas in Western Australia are experiencing a slowdown. CoreLogic notes that growth in regional markets is losing momentum due to affordability concerns and shifting demand.
Looking Ahead
Experts predict that Perth’s property market will continue to perform well in the coming years, driven by factors such as population growth, infrastructure development, and a stable economy. Investors and homebuyers are advised to stay informed and consider long-term trends when making decisions.
In summary, Western Australia’s real estate market in mid-2025 presents opportunities for both buyers and investors, particularly in Perth. While regional areas may face challenges, the overall outlook remains positive. Staying informed and seeking professional advice will be key to navigating this dynamic market.
