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WA Property Market Update July 2025

With ongoing global uncertainty and shifting domestic conditions, Australian property continues to be a pillar of economic confidence. In July 2025, WA stands out for its resilient market dynamics in both the residential and office property sectors. Buoyed by interest rate cuts, a robust resources sector, and evolving investor sentiment, WA continues to chart its own course—offering value and opportunity across urban and regional centres alike. This update explores the key trends driving residential and office property markets throughout the state.

WA Residential Property Market Update – July 2025

Western Australia’s residential property market continues to outperform many other states, thanks to a unique mix of affordability, lifestyle appeal, and robust economic underpinnings. While the national median dwelling price hovers around $825,000, Perth’s median sits just below that at $790,000, offering more accessible entry points without sacrificing growth potential. Despite strong year-on-year increases, WA’s housing remains comparatively affordable, especially for buyers priced out of Sydney or Melbourne. In particular, suburbs north and south of the Swan River are still delivering exceptional value under the $750,000 mark.

Buyers with this budget can secure a wide variety of property types depending on their goals. In East Perth, for example, a $750,000 investment recently secured a large two-bedroom apartment with premium amenities and a 6.6% gross rental yield. Meanwhile, in Morley—one of the state’s strongest-performing suburbs—$750,000 gets you a modern four-bedroom family home in a rapidly appreciating neighbourhood. These case studies are not outliers. Across Como, Armadale, Brabham and Hilbert, the market remains competitive yet rewarding for investors and owner-occupiers alike. Notably, Hilbert has posted 24% annual growth while still delivering newer homes on larger lots under budget.

Beyond Perth’s metro borders, WA’s regional centres continue to attract investor attention and offer high-yield opportunities. Port Hedland, for instance, has recorded gross rental returns in excess of 14% on some apartments, while Broome, Geraldton, Karratha and Kalgoorlie offer a blend of lifestyle and investment potential. In Kalgoorlie, for example, a single $750,000 investment could secure two separate properties generating strong combined yields. Similarly, in Geraldton and Esperance, that same budget may buy a near-new home close to the beach or a pair of income-generating units.

Coastal towns like Busselton, Albany and Margaret River are also commanding interest, balancing lifestyle appeal with increasing capital growth. In Busselton’s Avocet Boulevard, a three-bedroom home just 500 metres from the beach recently sold for $720,000. Across many South West communities, the $750,000 figure still opens doors to family homes, newer townhouses or solid short-stay investments with consistent rental demand. Even in more tightly held suburbs like Cable Beach and Vasse, buyers are finding ways to enter the market.

Overall, the strength of WA’s residential sector lies in its flexibility and diversity. Whether buying to live in or investing for yield, the options remain plentiful—especially when paired with expert financial advice and up-to-date market data. With further interest rate reductions on the horizon, demand is likely to persist, especially in areas where infrastructure and population growth continue to support long-term value.

WA Office Property Market Update – July 2025

Perth’s office market continues to defy the so-called “global office crisis” gripping many other capitals. Instead, WA is seeing premium-grade demand supported by institutional investment, sustainability expectations, and smart design aligned with hybrid work models.

The completion of Nine The Esplanade at Elizabeth Quay and the proposed developments at 15 and 21 The Esplanade reflect growing confidence in high-end office space. These developments are being matched by strategic refurbishments of older stock, like the transformation of 100 St Georges Terrace and 619 Murray Street.

Tenants are demanding more from their offices—flexible layouts, wellness-focused design, and ESG credentials. This has driven a wave of targeted upgrades, particularly in well-located secondary stock, with incentives still generous: up to 45% for premium spaces. Technological integration is also becoming standard, with demand for AI-driven climate control, smart lighting, and integrated AV systems. These factors are pushing Perth’s refurbishment market into a new era, driven by innovation and evolving work culture.

Despite high CBD vacancy rates nationally, Perth’s distinct economic profile and commercial activity are driving growth. With new projects in the pipeline and continued investment, WA’s office sector remains firmly on the radar for developers and occupiers alike.

Conclusion

While other markets navigate volatility, WA continues to present a compelling property proposition. The residential sector showcases affordability and diversity across metro and regional areas, while the office market is thriving on modernisation and strong demand for quality.

With interest rates potentially dropping further, and market confidence rebuilding, there’s clear momentum behind both residential and commercial property in WA. Whether you’re a first-home buyer, seasoned investor, or business seeking new premises, understanding these market trends is key to making smart property decisions.

Want to discuss your property strategy? Contact the team at McKinley Plowman on (08) 9301 2200 or via our website to speak with our finance specialists.

Data/Further reading:

HTW Month in Review

REIWA Market Insights

written by:

Ben Hart

Ben joined the McKinley Plowman team in 2017 as a Marketing & HR Assistant, after completing a Bachelors degree in Marketing & Management from the University of Western Australia. Ben has since stepped up to the role of Marketing Manager and oversees the marketing activities for MP+ and many of our clients.

Ben enjoys helping clients take their businesses to the next level with thoughtful marketing strategies, innovative solutions, and timely reviews to ensure great outcomes. When he's not in the office, you'll find Ben playing football (soccer), watching it, or reading about it.