Home » community » News » WA Property Market Update January 2025

WA Property Market Update January 2025

As the WA Property Market landscape continues to evolve, understanding the trends in sales transactions, property listings, and rental market shifts is vital for anyone considering a property move, whether it be upgrading to a larger home, refinancing to unlock equity, or selling to downsize. Using market data drawn from the latest weekly snapshots and expert insights from REIWA’s forecasts, this comprehensive update will delve into the dynamic Western Australian property market with a focus on the latest data insights from January 2025 and a forward-looking forecast for the remainder of the year.

WA Residential Property Market Data Insights – January 2025

In January 2025, the WA residential property market showcased a dynamic yet resilient performance across the month. Sales transactions varied notably, beginning with modest figures early in the month and surging mid-month to peak at 865 transactions in the later weeks. Throughout January, both house and unit sales experienced significant increases, while land sales were more volatile—at times surging dramatically and at other times declining. This overall variation reflected the market’s responsiveness to buyer demand and the diverse nature of property types available.

The total level of stock in the Perth market demonstrated a gradual rise, with properties for sale increasing steadily as listings for houses, units, and vacant land adjusted to shifting market conditions. Premium suburbs such as Dalkeith consistently commanded higher sale prices—with figures reaching nearly $5 million—while more affordable transactions were recorded in areas like Mount Hawthorn. Top performing suburbs in sales repeatedly included Baldivis, supported by strong activity in suburbs such as Scarborough, South Perth, and Thornlie.

The rental market also maintained its momentum, with the number of available properties fluctuating between roughly 1,900 and 2,300 units. Although weekly changes were observed, the rental sector remained robust, with leasing activity showing considerable bursts of growth. Leading rental suburbs such as Baldivis, Perth, and East Perth highlighted the ongoing demand for quality rental accommodation in the region.

Overall, January 2025 provided a comprehensive snapshot of a market in motion—balancing robust sales activity with a responsive rental sector—offering valuable insights for buyers, sellers, and investors navigating the WA property landscape.

Outlook for the WA Property Market Update in 2025

Market Forecast and Growth Predictions

According to REIWA’s 2025 property insights, the Perth market is on track for moderate growth throughout the year, with expectations of a 5 to 10 per cent increase in median house and unit sale prices. Following an impressive 24.2 per cent growth in the median house sale price during 2024, the market is now projected to witness more tempered, but still significant, growth rates in 2025. The forecast anticipates that the strong fundamentals that underpinned the previous year’s record-breaking figures—such as robust population growth, low unemployment, and a resilient economy—will continue to support steady, price increases. As affordability comes under greater scrutiny due to rising prices, demand is likely to shift towards more affordable suburbs and entry-level units, which remain attractive to a broad range of buyers. While the market is expected to perform well overall, potential headwinds such as election-related uncertainties and fluctuations in interest rates may introduce a degree of caution among buyers. Nevertheless, the data suggests that Perth will maintain its seller-favourable conditions, albeit with a more balanced pace of growth as market participants adjust to the evolving economic landscape.

Perth Rental Market Trends

The rental market in Perth has seen notable adjustments in recent months. In 2024, after a period of robust growth, rental prices began to stabilise, even as new supply from investor-owned new builds started to enter the market. This trend is expected to continue in 2025, with a more measured pace of growth in weekly rental prices and an increase in the vacancy rate towards a more balanced market scenario. While median dwelling and unit rents have reached record highs, the rate of increase is forecast to moderate, offering some relief to tenants who have faced escalating costs over the past few years. Buyers and investors are advised to keep an eye on rental market developments as these trends could have implications for property investment strategies and long-term financial planning.

Regional Market Outlook

Regional centres across WA are likely to experience varied growth trajectories in 2025. Southern centres, in particular, are set to lead the charge with median house sale prices anticipated to increase by between 10 to 15 per cent. Centres such as Bunbury have already shown strong performance—with a 27.3 per cent increase recorded—and are expected to maintain momentum due to favourable employment prospects, quality of life improvements, and infrastructure developments such as the Busselton airport. In contrast, regions like Kalgoorlie, Karratha, and Port Hedland may see more modest increases of up to five per cent. This divergence in growth rates highlights the importance of local market conditions, where factors such as job opportunities, population trends, and new property supply will be the key drivers of performance in each regional centre.

The Resurgence of Auctions

An emerging trend in the WA property market is the resurgence of auctions as a popular sales method. With properties in Perth selling at record speed in recent years, some sellers have historically opted for private treaty sales. However, recent data suggests that auctions could make a notable comeback in 2025. Auctions provide a competitive environment where motivated buyers are drawn together, often resulting in sales that achieve true market value. This method also offers sellers the advantage of greater control over sale conditions—including settlement dates and deposit amounts—thus minimising common delays related to finance or building inspections. As auctions regain traction, sellers should consider this approach for its potential to not only accelerate the sales process but also to secure more favourable outcomes in today’s competitive market.

Looking Ahead

In summary, January 2025 has delivered a wealth of insights into the WA property market, showcasing a period of dynamic activity characterised by varied weekly performance and a promising outlook for the remainder of the year. Whether you are considering upgrading to a larger home, refinancing to unlock equity, or selling to downsize for retirement, the evolving market conditions call for timely and informed decision-making. At McKinley Plowman, our Finance team is well-equipped to assist you with all your lending needs and support you through your lending needs. For personalised advice and expert guidance, please contact us at (08) 9301 2200 or (08) 9325 2411, or visit our contact page. Let our expertise help you turn market insights into actionable opportunities.

Data & Further Reading:

• REIWA: Auctions set to regain popularity in 2025
• House prices to grow up to 10 per cent in 2025: REIWA market forecast update

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.