This article was originally published in The West Australian on Saturday 27 December 2025, written by Sean Briggs.
How would you summarise the 2025 Perth property market?
The market was fast paced, intensely competitive and defined by strong demand meeting limited supply across both residential and commercial sectors. Momentum shaped the year, driving strong values and reinforcing the structural pressures underpinning the state’s property landscape.
What were your key takeaways from this year's market?
The 2025 market confirmed WA had entered a new structural phase, rather than a temporary upswing. Residential conditions began to stabilise,especially in rentals where the rate of increase finally eased, while sales activity performed almost exactly as projected and pushed the median price toward the $1 million benchmark, according to Domain’s House Price Report for September 2025. Strong government intervention successfully reactivated first homebuyers and reshaped competition at the entry level, highlighting the deeper issue of inadequate supply.
Higher-quality, conveniently situated apartments also recorded a clear rise in demand and values, signalling a shift toward more diverse housing solutions as aff ordability tightened across the state.
How did the 2025 market compare with the last few years?
Compared with recent years, 2025 amplified the same core trends of rising prices, tight supply and elevated competition but at a sharper pace, which was most clearly demonstrated by Perth’s rapid median price escalation from roughly $500,000 to near $1 million in a relatively short timeframe. Government incentives shifted buyer behaviour, enabling first homebuyers to outbid investors in many suburbs.
Overall, the market remained structurally constrained but the profile of demand and product choice evolved.
How did the commercial property market perform?
Commercial property was led once again by the industrial sector, where both investors and owner-occupiers competed intensely for limited stock – particularly light and general industrial land.
The office sector experienced another subdued year, with leasing activity and rental growth limited by ongoing workplace shifts and a clear preference for quality buildings. Retail delivered a mixed picture – new neighbourhood centres in growth corridors leased well, and fast food and convenience operators expanded while hospitality and fashion remained challenged.
Despite varied performance across sectors, high-quality investment assets of any type attracted strong competition due to scarce availability and positive investment sentiment.