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WA Property Market Update August 2025

As we pass the midpoint of 2025 and end August, the WA property market continues to deliver a tale of two forces: strong population growth and a persistent undersupply of housing and industrial space. Both have driven price growth across metro and regional areas, and in some sectors, rental returns are achieving eye-watering yields. With the Reserve Bank reducing the cash rate to 3.60% — its third cut in six months — and infrastructure investment on the rise, WA remains a standout performer on the national stage. Here’s what buyers, sellers and investors need to know this month.

WA Industrial Property Market Update August 2025

Perth’s industrial market remains Australia’s tightest, with a vacancy rate near 1% and minimal speculative building in the pipeline. Approximately 100,000 square metres of new space is due in the second half of 2025 — most of it already pre-committed. Precincts like Forrestdale, Hazelmere and Neerabup are booming, spurred by logistics and green energy industries, along with upgrades to transport and power infrastructure. Even with elevated construction costs, refurbishments are surging to meet demand, with energy-efficient features attracting tenants and investors alike.

Major projects like Westport and METRONET are opening new development corridors, particularly in Perth’s north and south-east. These catalysts are fuelling confidence despite global economic uncertainty. Owner-occupiers remain active, and leased assets with strong covenants continue to attract interstate investment. Overall, WA’s industrial market is being shaped by long-term fundamentals — economic diversification, population growth and infrastructure — rather than short-term speculation.

WA Residential Property Market Update August 2025

WA’s residential property sector has sustained its growth trajectory into the second half of 2025. Perth’s median house price hit $800,000 in July, driven by tight supply, rapid turnover and interstate migration. Suburbs like Armadale, Balga and Harrisdale continue to see strong growth due to affordability, lifestyle factors and infrastructure upgrades.

Across Perth, REIWA data shows the average time to sell a property dropped again in recent months, returning to near-record lows. Meanwhile, stock levels remain well below historical averages. On the rental side, pressure remains intense. Median house rents in Perth are now $680 per week, with 4-bedroom homes achieving $720 per week. The apartment market is also rallying, particularly in West Perth and East Perth. Inner-city units are gaining traction due to rental yields north of 6% and relative affordability compared to houses.

Regional WA mirrors this strength. Karratha and Port Hedland are achieving gross rental yields above 10% in some cases. Geraldton, Bunbury, and Dunsborough continue to see robust capital growth, fuelled by lifestyle appeal and east coast investor activity. The South-West and Great Southern markets are also thriving, with days on market shrinking and prices climbing. Dunsborough’s median price now sits at $1.16 million, while Albany suburbs like Spencer Park and Bayonet Head are achieving double-digit growth.

Perth’s Most Affordable Suburbs

While median prices continue to climb, there are still affordable pockets within Greater Perth. According to REIWA, Medina is the most affordable suburb as of July 2025, with a median house price of $540,000. Other notable inclusions are Mandurah ($560,000), Armadale ($570,000), and Midland ($575,000).

These areas are benefiting from improved infrastructure, family-friendly amenities, and proximity to jobs hubs. Suburbs like Camillo, Parmelia, and Calista offer larger blocks, strong rental yields, and access to schools and transport. For buyers priced out of inner Perth, these suburbs provide a viable entry point into homeownership or investment. With WA’s population growing at 2.5% annually — the highest in the nation — demand for affordable homes will remain strong.

Looking Ahead

WA’s property market has remained resilient through the first half of 2025. Whether you’re an investor eyeing strong industrial yields or a buyer looking for value in Perth’s affordable suburbs, opportunities still exist. The fundamentals — population growth, infrastructure investment, and undersupply — point to continued strength into the remainder of 2025 and beyond.

As always, localised and professional advice is key to making the most of market conditions. If you’re looking to buy, sell, or invest, speak with the team at McKinley Plowman to understand your options and position yourself for long-term success.

References + Further Reading:

1. Herron Todd White (2025). Month in Review – July 2025. Accessed August 2025: https://htw.com.au/month-in-review/
2. REIWA (2025). Perth Metro Market Snapshot – Week Ending 17 August 2025. Accessed August 2025: https://reiwa.com.au/the-wa-market/perth-metro/
3. REIWA (2025). Perth’s Most Affordable Suburbs to Call Home in 2025. Accessed August 2025: https://reiwa.com.au/news/perth-s-most-affordable-suburbs-to-call-home-in-2025/

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.