The property market in Western Australia experienced significant challenges throughout 2025, impacting buyers, sellers, and tenants alike. As the year concludes, many individuals involved in the real estate sector have expressed their frustrations and concerns over the state of the market.
Buyers Struggle in a Competitive Environment
For prospective homeowners, 2025 was marked by intense competition. Bidding wars became commonplace, with properties often selling for prices significantly above their listed values within days of hitting the market. Many first-time buyers faced repeated disappointments, watching their aspirations of homeownership fade as they were consistently outbid. The combination of limited stock and high demand forced many to compromise on aspects such as location and property condition.
Sellers, while benefiting from rising prices, faced their own set of challenges. The excitement of selling at a strong price was often overshadowed by the anxiety of finding a new home. Many felt caught in a difficult position, unable to sell their current property without securing a new one, yet unable to make an offer on a new property without first selling.
Tenants Experience Increased Pressure
The rental market in Western Australia also encountered significant strain throughout the year. Record-low vacancy rates and escalating rents placed immense pressure on tenants, leading to tough decisions for many families. As rents soared, some families opted to downsize, while young adults postponed moves towards independence. The competition for rental properties intensified, with multiple applicants vying for single listings, exacerbating the sense of housing stress across the region.
Real estate professionals were not insulated from these challenges either. Many in the industry handled unprecedented volumes of inquiries and fielded numerous calls from frustrated clients. The emotional toll of consistently delivering disappointing news weighed heavily on those tasked with navigating the complexities of the market.
As the President of the Real Estate Institute of Western Australia (REIWA), I have witnessed firsthand how these extreme conditions have impacted not only the market but also our broader community. The strain felt in 2025 has highlighted the need for a more balanced approach to real estate in Western Australia.
Looking ahead to 2026, my hope is for a market that allows buyers to engage without desperation, enables sellers to move with confidence, and ensures that tenants can find affordable and suitable housing. As the holiday season approaches, I wish peace and prosperity to all who are navigating the complexities of the current housing landscape. May the New Year bring the outcomes you are hoping for in the property market.
