Affordability remains a key concern, with buyers navigating interest rates and last year’s sharp rise in housing prices. The median house price in Perth exceeded $700,000 in 2024 after a 20 percent surge, but price growth this year is expected to moderate.
John Percudani, founder and managing director at Realmark, describes this as both a natural market adjustment and a reflection of cautious buyer sentiment.
“Buyers are more considered in their decisions, but the underlying demand for housing remains strong,” says Mr. Percudani.
“Interest rates have impacted financial capacity, with some buyers deferring their decisions or adjusting expectations.”
Despite these pressures, WA’s property market is uniquely positioned compared to most other Australian states. Strong employment levels, positive sentiment and steady population growth continue to support housing demand.
Supply, however, remains a significant challenge. While new builds are being delivered, they’re not meeting demand quickly enough. High construction costs and approval delays have created bottlenecks, impacting affordability and accessibility for many buyers.
Apartments are emerging as a preferred choice for some first-home buyers and investors, driven by affordability concerns, with Mr. Percudani anticipating that apartment prices may see more significant growth than traditional housing in 2025, as demand outstrips supply in this sector.
“The supply imbalance is the biggest challenge for WA’s property market,” he says. “It affects all segments, from first-home buyers to investors, and underscores the need for more responsive housing solutions.”
Easing interest rates, anticipated by mid-year, could restore buyer confidence and support a more stable market. With strong economic fundamentals, WA remains well-positioned for property opportunities in 2025.
Speak with Realmark today to plan your next move and navigate WA’s evolving property market with confidence.