Perth Property Market Outlook Post-2025 Elections: Growth Amid Policy Shifts

The recent results of both the Western Australian state and federal elections are set to have a significant impact on Perth's property market. With policies aimed at addressing housing affordability and stimulating economic growth, the city is likely to experience both challenges and opportunities in the real estate sector.

At the federal level, the Albanese government’s commitment to its ambitious Homes for Australia Plan is expected to shape the market substantially. This $43 billion initiative aims to deliver 100,000 new homes over the next few years, providing a much-needed boost to housing supply. Additionally, an expanded First Homebuyer Guarantee Scheme will allow eligible buyers to enter the market with as little as a 5% deposit, bypassing the need for costly Lenders Mortgage Insurance. While this is welcome news for first-time buyers, it may also drive up demand in Perth’s more affordable suburbs, potentially increasing property prices.

Economically, Perth remains on a strong footing. The city’s resource-driven economy continues to thrive, supported by exports and infrastructure investments. With the Reserve Bank of Australia signaling potential interest rate cuts, borrowing could become more affordable, further stimulating demand for housing. However, this combination of increased buyer activity and limited immediate supply could lead to heightened competition, especially in popular areas.

Looking ahead, property prices in Perth are projected to grow. REIWA anticipates an increase of up to 10% in 2025, following a year of strong growth in 2024. Similarly, SQM Research forecasts a rise of up to 19%, driven by economic stability and housing demand. For investors, this presents an opportunity to benefit from capital growth, particularly in suburbs poised to attract both new homeowners and renters.

The rental market, however, may see some relief. After years of intense pressure and rising rents, Perth’s vacancy rates have inched upwards, providing some breathing room. While rents remain high, the pace of growth is expected to slow, signalling a more stable period for tenants.

For prospective buyers and investors, timing will be key. The market often experiences a lull during election periods as participants adopt a wait-and-see approach. Now, with clarity on policy directions, activity is likely to ramp up. First-home buyers, in particular, might consider acting swiftly before new schemes further increase competition and prices.

As Perth prepares to navigate these shifts, staying informed and seeking local expertise will be crucial for making sound property decisions. Whether you're a first-time buyer, a seasoned investor, or someone looking to upgrade, understanding the nuances of this evolving market will help you make the most of the opportunities ahead.

Let the team at Adaptive Settlements help you with your next Perth Property sale or purchase. We can help sellers and buyers with any property transaction in Western Australia. Contact us today for a free quote.