Home » community » News » WA Property Market Update April 2025

WA Property Market Update April 2025

With the Reserve Bank’s recent interest rate cut, strong economic performance here in WA, and continued population growth, April 2025 has brought a mix of opportunity and complexity to the property market. From the surging investor interest in residential property to the evolving demand for premium office space, Western Australians are watching the market with keen interest. This update takes a deep dive into both the residential and commercial office sectors, analysing what’s driving performance, where the pressure points lie, and what might be coming next.

WA Residential Property Market Update April 2025

The residential market in WA continues to outperform other capital cities, bolstered by strong investor interest and rapid population growth. Since 2020, Perth’s median house price has jumped from $480,000 to $750,000 — a staggering 56% rise, with 22% of that occurring last year. This momentum has been fuelled by record-high investment loan approvals and consistently low housing stock levels. As of February 2025, the number of properties listed for sale sat at just 5,000 — well below the balanced market range of 12,000 to 14,000.

This undersupply, coupled with strong rental yields, has continued to attract investors. Migration remains the key driver, with WA experiencing 2.8% annual population growth — the highest in the country — and net migration exceeding 81,000 people, mostly from overseas. As demand for housing continues to outstrip supply, the pressure on the rental market remains high.

South-eastern suburbs such as Armadale and Maddington are proving particularly popular with out-of-state investors. Properties in these areas have achieved growth rates of up to 40% over the past 12 months. Similarly, regional hubs like Broome, Port Hedland, Karratha, and Newman are attracting investors chasing high yields — often in the double digits — driven by strong economic foundations and limited housing stock.

Perth’s apartment market is also making a comeback, particularly in the sub-$600,000 segment. Locations such as West Perth, Cockburn Central, and CBD fringe areas are offering yields between 6.9% and 9.9%, sparking renewed interest from buyers priced out of detached housing.

Rental values continue to rise, with Perth’s median weekly rent now sitting at $675 — a 4% increase since the start of the year. Vacancy rates, while improving slightly to 1.9%, remain critically low. Most tenants now tend to favour newer, better-located dwellings over dated stock, even in high-yielding suburbs. With investor-grade dwellings flooding secondary locations, there’s concern that weaker assets may face price pressure as the market begins to normalise.

WA Office Property Market Update April 2025

Compared to other capitals, Perth’s office market is showing signs of relative strength. While national CBD office vacancy rates have crept up to 13.7%, Perth’s CBD vacancy rate actually fell from 15.5% to 15.1% over the six months to January 2025. This modest decline, while small, reflects stronger fundamentals and a more stable leasing environment, especially when compared to eastern states’ capitals like Melbourne and Sydney.

West Perth, however, recorded a slight vacancy increase to 11.8%. Overall, demand is focused on smaller floor plates (250–350 sqm), as large-scale requirements remain soft. Fringe CBD locations such as Subiaco and Leederville continue to perform well, thanks to constrained supply and a preference for premium amenities in accessible locations.

Environmental sustainability has emerged as a key theme for both tenants and landlords. Increasingly, tenants are prioritising buildings with strong ESG credentials — such as solar panels, efficient HVAC systems, and wellness-centric designs. Landlords willing to retrofit ageing stock to meet these criteria are more likely to attract and retain high-quality tenants.

Looking Ahead

The WA property market continues to present unique opportunities across both residential and commercial sectors. Investors are responding to high rental yields and strong population growth, including in areas previously overlooked. The residential market remains undersupplied, while the office sector is starting to show signs of recovery, led by ESG-conscious demand and premium-grade space.

For those looking to make informed decisions in 2025, now is the time to seek out expert guidance. Whether you’re an investor, business owner, or first-time buyer, understanding the local nuances of WA’s property market is more important than ever.

To speak to one of our finance specialists about your loan options for a new home, investment property, or to refinance an existing loan, contact McKinley Plowman today on (08) 9301 2200 or visit our website.

Data from: HTW Month in Review

written by:

Paul Moran

Paul has over 35 years of experience in finding financial solutions for homebuyers, investors and business owners.
A licensed broker and member of the Mortgage & Finance Association of Australia (MFAA), Paul’s extensive experience includes 20 years with a major bank, seven of which were as commercial banking manager.
Paul delivers a holistic financial solutions to achieve the best possible outcome for a client’s personal or commercial lending needs. Paul also provides a comprehensive financial consultancy to business owners on commercial, equipment and invoice finance.