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WA Property Market Update May 2025

WA Property Market Update May 2025

The dust has now settled on the 2025 Federal Election, and with a clear mandate, the Albanese Government is set to advance its key policy agenda. For Australians navigating the property market — whether buying, selling, investing or renting — Labor’s emphatic win has provided clarity around national political power and a sense of direction for the foreseeable, even as economic uncertainty persists.

Housing affordability and cost-of-living pressures were major talking points during the campaign, and remain firmly on the national agenda. Labor’s re-election brings with it a renewed focus on first home buyer support, shared equity schemes, and infrastructure investment — all of which could influence property values and access across WA. At the same time, interest rate speculation continues, with many watching closely for signs of monetary easing in the latter half of 2025.

In this month’s market update, we examine how WA’s residential and industrial sectors are performing post-election. From property price trends and rental market dynamics to land supply constraints and shifting buyer behaviour, we explore what’s unfolding on the ground across Perth and regional WA.

WA Residential Property Market Update May 2025

Despite sustained cost of living concerns and elevated interest rates, WA’s residential property market remains buoyant. Median house prices now sit at $780,000, while units average $530,000. On the rental front, weekly rents have climbed to $680 for houses and $650 for units. While this level of pricing provides confidence for sellers and landlords, it continues to challenge first home buyers, who now face saving for more than a decade to reach a standard 20% deposit.

The affordability gap between houses and units continues to widen, prompting many to consider more compact or older dwellings to get a foot on the ladder. Buyers are also more frequently turning to previously overlooked suburbs and older properties that may require renovation, in order to buy into high-demand areas at a lower cost.

Prestige suburbs such as Peppermint Grove, Mosman Park, and Scarborough remain aspirational, but savvy buyers are discovering that champagne locations can be accessed on a beer budget — provided they’re flexible. Smaller homes, dated interiors, or units in premium postcodes are providing realistic entry points. The trend is echoed in regional WA, where markets like Albany, Esperance and Broome offer diverse price points depending on location, condition, and land size.

WA Industrial Property Market Update May 2025

Western Australia’s industrial sector entered 2025 in a position of strength, following a standout year. Demand for prime, high-specification premises remains high, and this is driving rental growth and yield compression. Net face rents in select Perth precincts have climbed to between $175 and $200 per square metre — a record for the local market. Leasing incentives remain low, typically below 5%, reflecting the imbalance between supply and demand.

Limited land releases continue to place upward pressure on industrial land values, especially in secondary locations where prices are now surpassing $600 per square metre. The Orion Industrial Park by DevelopmentWA is among the few new industrial precincts being delivered, while older sites in areas like Neerabup and Forrestdale are being repositioned to meet the market’s growing appetite.

Despite broader economic uncertainty and geopolitical tension, investor interest remains strong, supported by WA’s robust mining and resources sector. Eastern states-based investors and owner-occupiers are driving activity, while the lack of suitable stock is pushing some toward secondary and tertiary assets. This is creating noticeable yield compression and strong competition for well-leased, quality assets.

REIWA Snapshot – Week Ending 25 May 2025

According to REIWA’s latest market snapshot, sales volumes remain steady, with 743 houses, 200 units and 69 blocks of land sold across the state. These figures reflect stable demand in a market still characterised by limited supply. The number of properties currently listed for sale — 2,863 houses, 1,022 units and 661 lots of land — remains below the long-term average, contributing to sustained upward pressure on prices.

South of the river, Baldivis led the way with 25 house sales for the week, followed by South Perth and Rivervale. North of the river, Perth, East Perth and Maylands recorded strong results, with these centrally located suburbs continuing to attract both owner-occupiers and investors seeking rental yield and capital growth potential.

Rental conditions are similarly tight. In the past week, 456 houses and 219 units were leased. However, availability remains constrained, with only 1,652 houses and 719 units currently available for rent — a shortfall that’s pushing rents higher and intensifying competition among tenants.

Median sale and rent prices highlight the cost pressures in today’s market:

• Houses: $780,000 median sale price; $680 median weekly rent
• Units: $530,000 median sale price; $650 median weekly rent
• Land: $340,000 median sale price across all sizes

These figures confirm that while opportunities exist, particularly in less saturated areas or alternative dwelling types, buyers and renters need to act swiftly and strategically to secure their ideal property.

A Market Full of Opportunity and Challenge

Whether you’re a first-time buyer, an investor looking to diversify, or a business owner seeking industrial space, WA’s property market offers plenty of opportunities — provided you’re well-informed and flexible. While affordability and supply remain challenges, strategic decisions, sound advice and patience can help you unlock the full potential of the current market.

To discuss your personal or business property finance needs, contact the Finance team at McKinley Plowman. Our experienced approach to finance and extensive network of property professionals ensures you get the guidance you need, every step of the way. You can reach us on (08) 9301 2200 or via our website: mckinleyplowman.com.au/contact-us

Further Reading – 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.