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WA Property Market Update December 2025 + Year in Review

As we look back on 2025, Western Australia’s property market continues to stand out on the national stage. While conditions have softened or plateaued in parts of the eastern states, WA has remained comparatively resilient, supported by strong population growth, tight housing supply and improving confidence following interest rate cuts during the year. For buyers, sellers and investors alike, understanding how the local market has performed remains essential for informed property decisions.

Here’s how WA’s property market performance stacks up against broader national trends, what 2025 delivered, and what it may signal for 2026.

WA Residential Property Market Update – December 2025 + Year in Review

Western Australia’s residential property market spent another year underpinned by supply constraints and sustained demand from owner-occupiers and investors. Population growth has remained a critical driver, with many households continuing to favour Perth and key regional centres due to relative affordability and lifestyle appeal compared to the eastern states.

Sales activity and listings

REIWA data for the week ending 4 January 2026 shows steady transactional activity, with 106 house sales, 27 unit sales and 10 land sales across the Perth metro area. Importantly, listings remain tight. Just over 1,100 houses and around 400 units were available for sale, reflecting the ongoing imbalance between supply and demand. This scarcity has continued to place upward pressure on prices throughout much of 2025, which is likely to continue this year.

Sales activity has been broad-based rather than concentrated in a single price bracket. Suburbs such as Baldivis, Banksia Grove, Kelmscott and Rockingham featured prominently among top sellers, reflecting continued demand in affordable, family-oriented locations with good infrastructure and amenities.

Prices and rents

By December 2025, Perth’s median house price reached $840,000, with four-bedroom homes sitting closer to $900,000. Units have also seen meaningful growth, with the median unit price now around $590,000. While price growth has moderated from earlier peaks, values have largely stabilised at higher levels rather than retracing.

Rental conditions remain tight. Median house rents are around $700 per week, with four-bedroom homes closer to $750 per week. Unit rents have also remained elevated, averaging approximately $670 per week. Low vacancy rates and limited new supply have kept rental affordability under pressure, particularly for households seeking larger properties.

Regional WA performance

Beyond Perth, prestige and lifestyle-driven demand has extended into regional WA. Coastal markets such as the South West, Geraldton, Esperance and Broome have continued to attract buyers seeking lifestyle properties, holiday homes or long-term holds. While transaction volumes are lower in regional markets, tightly held stock and limited supply have driven prices.

Overall, the residential market across Western Australia kicks off 2026 with solid fundamentals. While affordability pressures remain a consideration, particularly for first-home buyers and renters, the underlying demand story continues to differentiate WA from many other parts of the country.

WA Retail Property Market Update – December 2025 + Year in Review

The WA retail property sector has delivered a quietly resilient performance throughout 2025, outperforming many earlier forecasts that anticipated sharper downturns following interest rate tightening in recent years.

Market conditions and investor sentiment

Nationally, retail property benefited from stabilising interest rates, easing cost-of-living pressures and a gradual recovery in consumer spending. In WA, these factors were amplified by strong population growth and limited new retail development, which helped keep supply constrained.

Perth’s metropolitan retail market attracted steady investor interest, particularly from private investors and self-managed super funds. Demand was selective, with a clear preference for well-located assets leased to non-discretionary tenants such as medical, allied health, food and essential services. These property types were viewed as offering more reliable income streams in an uncertain economic environment.

Yields, rents and vacancies

Throughout 2025, retail yields in Perth generally remained stable, averaging between 6.00% and 6.80% across neighbourhood, sub-regional and regional centres. Prime CBD retail rents increased by around 10% year-on-year, although conditions diverged sharply between prime and secondary assets.

Well-located, high-quality retail spaces experienced falling vacancies and reduced incentives, while secondary and poorly configured assets continued to face leasing challenges. This has reinforced the importance of asset quality, tenant mix and catchment strength when assessing retail property opportunities.

Rental growth across suburban retail precincts remained steady, supported by limited new supply. However, there was still some downward pressure in parts of the market where tenants faced ongoing cost pressures. In response, landlords increasingly adopted flexible leasing structures, shorter terms and tailored incentives to maintain occupancy and support tenant sustainability.

Transaction activity

Rather than headline-grabbing landmark sales, 2025 was characterised by a high volume of smaller retail transactions. More than half of all retail sales occurred in the $250,000 to $5 million range, highlighting the dominance of private investors and SMSFs. Suburban lifestyle precincts such as Subiaco, Mount Lawley, Fremantle and Leederville continued to attract consistent buyer interest, reflecting broader trends towards localised living and working patterns.

Overall, WA’s retail property market has demonstrated resilience and adaptability. While challenges remain in discretionary retail and secondary assets, investor confidence in well-located, non-discretionary retail remains intact heading into 2026.

Looking Ahead

The WA Property Market closed out December 2025 in a position of relative strength. Residential values have stabilised at higher levels, rental conditions remain tight, and prestige markets have continued to outperform national counterparts in both growth and relative value. In retail property, steady investor demand and constrained supply have underpinned a resilient year, particularly for quality assets with strong tenant fundamentals.

For Western Australians, the key takeaway is that local market conditions remain distinct from those on the east coast. Whether you are considering buying, selling or investing, understanding these local dynamics – and how they compare nationally – is essential to making confident, informed decisions as we move into 2026.

If you are considering a property purchase, refinance or investment strategy in 2026, the Finance team at McKinley Plowman can help you assess your options with confidence. To discuss how current market conditions may impact your plans, contact us on (08) 9301 2200 or visit our contact page to arrange a conversation.

Data From:

Herron Todd White 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.