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WA Property Market Update October 2025

WA Property Market Update October 2025

Spring has brought a renewed sense of activity to the Western Australian property market, with both the residential and office sectors showing movement as the year’s final quarter unfolds. While the Reserve Bank’s recent commentary signals that inflation remains a sticky issue, softer interest rates and population growth continue to underpin housing demand across the state.

In October, the property conversation in WA revolved around two key trends: the remarkable resilience of Perth’s land and housing markets, and the shifting dynamics of the office sector as businesses seek flexibility, value, and convenience. Nationally, conditions are mixed — yet WA continues to outperform many eastern markets in both sales and rental activity. Let’s take a closer look at how both sides of the market are evolving.

WA Residential Property Market Update – October 2025

Perth’s residential property market continues to surge ahead, fuelled by population growth, limited housing supply, and strong investor activity. According to REIWA’s data for the week ending 26 October 2025, 628 houses, 192 units, and 81 land parcels changed hands across the metropolitan area. Despite elevated building costs, the appetite for new land remains intense — a reflection of both scarcity and the ongoing affordability gap between established dwellings and new builds.

The median Perth house price now sits at $815,000, up from earlier in the year and representing one of the fastest-moving capital city markets in Australia. Rental markets remain tight, with vacancy rates near record lows and house rents averaging $695 per week. This imbalance between supply and demand continues to drive price resilience, particularly in sought-after suburbs north and south of the river. Top performers this month include Baldivis, leading the south with 18 recorded sales, and Perth, Subiaco, and Scarborough dominating the north. Baldivis has evolved from semi-rural affordability to a family favourite, with strong connectivity and accessible pricing. Meanwhile, inner-city hubs such as Subiaco and Scarborough are benefitting from their lifestyle appeal, walkability, and continued redevelopment activity.

On the construction side, land values in Perth have continued their upward trajectory, rising roughly 31 per cent over the past year and 7.2 per cent in the last quarter alone. The median lot price now sits around $360,000, with compact 7.5- to 10-metre frontages becoming more common as developers prioritise affordability and efficiency. While infrastructure bottlenecks remain a challenge, particularly around power and water connections, several key developments such as Mariginiup, North Ellenbrook, and Byford are advancing through planning. These projects are expected to deliver thousands of new lots over the coming years, though it will take time for supply to balance the current demand.

In short, demand continues to outstrip supply — and the ripple effect is being felt across Perth’s outer corridors. Areas like Piara Waters, Treeby, and Upper Swan have recorded extraordinary annual gains of 35–58 per cent on individual land sales. For first-home buyers and investors alike, government schemes such as the First Home Guarantee are helping bridge the affordability gap, even as construction costs remain high.

WA Office Property Market Update – October 2025

WA’s office sector is showing similar resilience — particularly at the entry level. With elevated financing costs still limiting large-scale institutional transactions, smaller strata-titled and suburban offices are attracting strong interest from private investors, owner-occupiers, and self-managed super funds (SMSFs).

In Perth, entry-level office properties in the $500,000 to $1.5 million range remain the most active segment. These assets, found in precincts like West Perth, Subiaco, Leederville, and Osborne Park, offer a tangible alternative for business owners seeking control over their premises and investors chasing steady yields. SMSF investors are particularly active, using commercial office purchases to house their own businesses and generate concessional-rate rental income within their funds. This strategy provides tax efficiency while offering long-term capital appreciation — a combination that continues to underpin confidence in the sub-$2 million segment.

Owner-occupiers are also taking advantage of improved borrowing conditions following recent rate cuts. For many, mortgage repayments on smaller offices are comparable to or lower than commercial rents, making ownership an appealing proposition. Meanwhile, developers are largely absent from speculative projects due to persistent construction cost pressures — a factor that’s limiting new supply and supporting rental stability. Perth’s CBD fringe and suburban markets are outperforming the CBD, thanks to higher demand for flexible and accessible workspaces. The return-to-office trend has been notably stronger in WA than in Sydney or Melbourne, but with a twist — rather than reverting to traditional CBD towers, many businesses are favouring suburban offices closer to home for staff convenience and lifestyle balance.

The result is a steady, well-balanced office market where affordability, location, and functionality outweigh sustainability credentials at the smaller end of the scale. Looking ahead, this segment is likely to maintain its momentum, supported by private capital, limited new supply, and the ongoing appeal of smaller, well-located assets.

Looking Ahead

As 2025 draws to a close, Western Australia’s property market remains one of the nation’s most robust — shaped by persistent housing undersupply, infrastructure challenges, and steady business confidence. In both the residential and office sectors, affordability and accessibility continue to drive decisions, even as broader economic uncertainty lingers.

For investors, developers, and homebuyers alike, WA’s combination of population growth, lifestyle appeal, and relative value compared to eastern states presents a compelling proposition. Whether it’s entering the office market through a self-managed super fund or securing a lot in one of Perth’s emerging suburbs, opportunities remain for those ready to act.

If you’re considering your next move in the property market — whether buying, investing, or refinancing — the Finance team at McKinley Plowman can help you make informed, strategic decisions. 📞 Call (08) 9301 2200 or visit www.mckinleyplowman.com.au/contact-us to get started.

Further Reading:

• HTW Month in Review
• REIWA Perth Market Insights

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.