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WA Property Market Update September 2025

September is over, Spring has well and truly arrived in WA, and the property market conversation is heating up with it as we enter Q4 2025. The Reserve Bank paused the cash rate at 3.60% on 30 September after its August cut, a move that stabilised borrowing costs and helped bolster confidence across residential and retail markets. Population growth remains a powerful tailwind, while supply constraints keep pressure on prices and rents. In this month’s update, we unpack the latest numbers from REIWA and insights from Herron Todd White (HTW) to help you interpret what’s happening on the ground—and what it could mean for your next move.

WA Retail Property Market Update – September 2025

Away from the headline-grabbing neighbourhood and sub-regional centres, entry-level retail (think high-street shops, convenience strips, small large-format assets) continues to show resilience. HTW notes this cohort typically sits below $10 million, reflects the “real economy,” and has benefited from steady population growth and a lack of new supply as construction costs remain elevated. Typical yields span ~5.0%–7.0%, tightening for blue-chip covenants and softening for weaker tenant profiles. For convenience centres, constrained supply and strong demand have supported yields in the ~5.5%–7.0% range, with rents commonly $400–$800/sqm, below higher-order retail.

In Perth, buyer depth is broadening. Private investors, SMSFs and owner-occupiers are targeting ground-floor strata in mixed-use buildings and freestanding suburban shops in well-patronised strips (e.g., Victoria Park, South Perth, Mount Lawley). Investors are attracted to stable income, longer leases and tenant-paid outgoings, with current pricing often implying 5%–7% yields. Balanced against that are the usual caveats: tenant concentration risk, online competition, capex for compliance/refurb, and lease complexity. As rate stability improves sentiment, we expect continued focus on suburban and lifestyle precincts, with mixed-use redevelopment and essential services remaining in favour. Due diligence on rent levels, vacancy history, exposure/parking, local competition and covenant strength remains critical.

WA Residential Property Market Update – September 2025

On the numbers, Perth’s sales pulse remains firm. For the week ending 28 September, REIWA recorded 619 house, 175 unit and 77 land sales, alongside tight listings. Median prices for the 12 months to August 2025 sit at $805k (house) and $560k (unit). Median asking rents are $690/wk (house) and $650/wk (unit)—with three-bedroom houses at $670/wk and four-bedroom at $730/wk. Top-selling suburbs recently include Perth, East Perth, Ellenbrook and Alkimos north of the river, and Thornlie, Como, Baldivis and Gosnells south of the river—reflecting demand that spans inner-city convenience through to family-sized affordability.

Supply remains the binding constraint. Elevated build costs and elongated delivery timelines continue to limit new stock, channelling buyers toward renovation strategies as a pragmatic alternative to building new or paying a premium for turnkey homes. HTW’s recent case studies across Perth metro and regional WA show meaningful value-uplift where buyers purchase sound, older dwellings and execute targeted upgrades (kitchen/bath, flooring, paint, façade refresh), provided the works align with local buyer preferences and budget discipline. For finance, note lenders treat extensions (new footprint) differently to renovations (within existing structure), so staging projects and documentation matters. With the national conversation around Division 296 (extra 15% levy on super earnings above $3m) still evolving, SMSF property holders should pay particular attention to professional valuations and cash-flow planning amid policy uncertainty.

Looking Ahead

The big picture for WA remains constructive: population growth, a stabilising rate environment and chronic undersupply are supporting prices and rents, while suburban retail with everyday-needs tenants is drawing sustained interest. That said, outcomes are increasingly asset-specific—by suburb, street, tenant, and dwelling quality. If you’re weighing a purchase, renovation, refinance or SMSF property strategy, now is the time to lean on rigorous valuations, sensible buffers and clear borrowing structures.

Need a second opinion or a lending game plan? Speak with McKinley Plowman’s Finance team on (08) 9301 2200 for tailored lending advice and access to a wide panel of lenders. We’re here to help you move confidently, whether you’re upgrading the family home, unlocking equity for a renovation, or assessing a retail opportunity.

Further Reading / References:

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.