Perth Property, Perth Settlements and the Federal Election

As Australia approaches the federal election on May 3, 2025, stakeholders in Perth and Western Australia's (WA) housing market are closely monitoring potential impacts. 

Historically, election periods introduce a degree of uncertainty, leading to cautious behavior among buyers and sellers. This phenomenon, often termed "poll paralysis," results in decreased property listings and transaction volumes as market participants await the election outcomes.

Historical Trends During Election Periods

Past federal elections have demonstrated notable effects on Perth's real estate market. For instance, during the 2019 and 2022 elections, property listings in Perth declined by approximately 15% and 12% respectively in the months leading up to polling day. Similarly, transaction volumes saw a nearly 20% decrease in the three months preceding the 2022 election . This pattern indicates a prevalent wait-and-see approach adopted by both buyers and sellers during election campaigns.​

Potential Policy Impacts on Housing

The 2025 election brings to the forefront several policy proposals that could significantly influence the housing market in Perth and WA:​

• Immigration Policies: Opposition Leader Peter Dutton has pledged to reduce Australia's net overseas migration to 160,000, a cut of 100,000 compared to current forecasts. This reduction aims to alleviate housing pressures and improve accessibility for young Australians . A decrease in migration could lead to reduced demand for housing, potentially stabilising or lowering property prices in the region.​

• Foreign Investment Regulations: During the election's caretaker period, delays in foreign investment approvals have been observed, particularly for large or complex applications. This pause creates uncertainty for developers and offshore investors, potentially impacting the pace of new housing developments in WA.

• Housing Affordability Initiatives: Both major parties have emphasised improving housing affordability, especially for first-home buyers. Policies aimed at boosting housing supply, such as encouraging new developments, may benefit the investment property market by increasing rental stock and stabilising prices.

Market Dynamics and Economic Factors

Beyond policy proposals, other factors are shaping the housing market:​

• Interest Rates: The recent cash rate cut in February 2025 has reignited buyer demand, contributing to national home prices reaching new peaks in March . Lower borrowing costs may encourage more buyers to enter the market, potentially driving up property prices in Perth and WA.​

• Population Growth and Housing Supply: WA's population is projected to grow by 1.7% in 2025–26, necessitating approximately 20,000 new homes to accommodate this expansion. However, challenges such as building approvals lagging behind and a looming land supply crisis may impact housing availability.

The intersection of election-induced uncertainty, proposed policy changes, and prevailing economic conditions creates a complex landscape for Perth and WA's housing market. 

Buyers and sellers should stay informed about policy developments and market trends to navigate this period effectively. Engaging with real estate professionals and financial advisors can provide valuable insights and guidance tailored to individual circumstances.

Whether you're buying or selling property, having a trusted property settlement agent by your side can make all the difference. At Adaptive Settlements, we provide expert guidance and seamless settlement services to help you achieve your property goals with confidence, no matter the market conditions.

Contact us today and let us handle the details so you can focus on what matters most: securing your future in WA’s dynamic housing market.