Camden Professionals

Western Australia property outlook August 2025

Perth continues to lead the nation in property value growth as of August 2025. CoreLogic data shows dwelling values rose 0.9% in July, pushing quarterly growth to 2.6% and annual growth to 12.0%, representing the highest rate among Australia’s capital cities

Median values:
- Overall Perth dwelling: $736,264
- Houses: $869,689 (median)
- Units: $615,528 (median)
- Units are seeing higher gross yields (~5.6%) compared to houses (~4.1%)

REIWA Forecast & Broader Projections

The Real Estate Institute of Western Australia (REIWA) forecasts property price growth of 5–10% in 2025, following a remarkable 24.2% increase in median house prices during 2024 (from $600,000 to $745,000) and a 21.4% jump in unit prices (to $500,000)

REIWA’s latest quarterly insights reiterate the 10% growth potential this year, with unit markets potentially outpacing houses
SQM Research predicts Perth dwelling prices may climb 14–19%, driven by the robust resources sector
A consensus from top forecasters suggests an average growth of around 8% in 2025

National Context

In a broader national outlook, Reuters reports that home prices in Perth are expected to rise about 5% annually over the next three years, keeping it among the property growth leaders alongside Brisbane and Adelaide.

Key Drivers of Growth

High rental demand & tight rental market: A viral video illustrating a queue of 92 applicants for a rental inspection in Osborne Park underscores acute rental market pressure, with Perth rents having surged 63% over the past decade
Investor dominance & rate environment: Record lending to investors—$130 billion in the year to June 2025—alongside rate cuts, is fuelling buying activity and pricing, pushing some first-time buyers to delay purchase plans
Immigration spike & limited supply: With nearly 246,000 arrivals in early 2025, rental vacancy rates have dropped to 1.2%, reinforcing demand and pushing investors back into the market.
Persistent supply constraints: Perth continues to battle limited housing supply, with suburbs like Fremantle, Bayswater–Bassendean, Joondalup highlighted among 25 regions across Australia predicted to see over 10% capital growth, regardless of broader economic shifts.

Suburb-Level Outlook

While August projections by suburb are limited, several key areas are emerging:

Bayswater–Bassendean & Fremantle: Identified among WA’s high-growth pockets due to tight supply and demand imbalance
Joondalup: Similarly flagged as a growth hotspot within Greater Perth).
Bertram (in the south metro area): Previously noted for strong early growth—with a median house price around $430,000, solid rental yields (~5.9%), and over 10% capital growth in preceding 12 months—this suburb remains one to watch for value and expansion potential

Perth Outlook – August 2025

A unique combination of factors has created ideal conditions for residential property investment in Perth—particularly for those eyeing the apartment market.

Western Australia’s capital is experiencing rapid population growth, record-low vacancy rates, and a marked slowdown in approvals for high-density housing. These pressures are converging to drive demand and tighten supply, especially in the apartment sector.

Historically, Perth has often been overlooked by investors from the eastern states, due to factors such as distance, limited national media coverage, and previous market fluctuations. However, that is changing. As property affordability continues to deteriorate in Sydney, Melbourne, and Brisbane, more investors are turning their attention west.

Perth now represents a compelling alternative—offering both value and strong rental performance. In fact, apartment yields are outpacing those for houses and units in the eastern capitals. According to the Real Estate Institute of Western Australia (REIWA), unit yields reached 6.2% in the year to March 2025, compared to just 4.5% for houses. Over the past five years, apartment rents have surged by 82.9%, underlining the strength of tenant demand.

These favourable conditions are just part of what makes Perth apartments an attractive proposition for investors, according to Ronald Chan, CEO of Finbar Group, Western Australia’s largest apartment developer. He notes that current market dynamics—particularly in the apartment sector—are creating long-term opportunities for those ready to enter the market.

Conclusion

As of August 2025, the Perth property market remains Australia’s strongest growth engine, underpinned by affordability, investor momentum, population growth, and supply shortages. REIWA expects 5–10% further growth this year, with some estimates hitting upward of 14–19%. Key suburbs—including Bayswater–Bassendean, Fremantle, Joondalup, and Bertram—remain areas to watch, providing both capital growth and rental yield opportunities.

For renters and first-home buyers, competition remains fierce amid rising rents and investor activity, suggesting sustained caution. Yet for investors, this environment offers robust returns and continued upside, particularly in high-demand suburbs with limited supply.

—————BOOK YOUR EXCLUSIVE 15 MINUTE ZOOM CONSULTATION————-

We offer a 15-minute no obligation consultation to existing property investors, first home buyers and small business owners who are looking at property investments, business and asset protection. To Book an Appointment simply click here and pick a time and date.

BOOK YOUR ZOOM APPOINTMENT HERE

How can we help?

If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.

General Advice Warning

The material on this page and on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this page and on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs.

Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this page and on this website are for illustrative purposes only.

Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability [except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.

Camden Professionals

Western Australian Government Incentives for Home Buyers

In Western Australia, prospective home buyers can benefit from a range of government incentives designed to make home ownership more accessible and affordable. These programs are especially valuable in today’s competitive housing market, where rising property prices and increased living costs can pose significant barriers. Here’s a look at some of the key incentives available to Western Australian home buyers in 2024.

First Home Owner Grant (FHOG)

The First Home Owner Grant is a significant initiative aimed at assisting first-time buyers. As of 2024, eligible Western Australian first home buyers can receive a grant of up to $10,000. This grant is available for new homes with a value up to $750,000. To qualify, buyers must meet certain criteria, including being an Australian citizen or permanent resident and purchasing their first home. This financial boost can help cover upfront costs such as deposit requirements and initial expenses.

First Home Loan Deposit Scheme (FHLDS)

The First Home Loan Deposit Scheme is another key program supporting new buyers. It allows eligible first-time buyers to secure a mortgage with a deposit as low as 5%, without needing to pay for lenders mortgage insurance (LMI). This scheme is particularly beneficial in reducing the financial burden of saving for a larger deposit, making home ownership more attainable for those who might otherwise struggle to meet traditional deposit requirements.

HomeBuilder Grant

The HomeBuilder Grant was introduced to stimulate the housing sector and support home buyers during challenging economic times. In Western Australia, the scheme provides a grant of $15,000 for new home builds and substantial renovations. To be eligible, construction or renovation contracts must be signed by specific dates and meet other criteria, such as the value of the property not exceeding $750,000. This grant can significantly offset the costs associated with building a new home or undertaking major renovations.

Stamp Duty Concessions

Western Australia also offers stamp duty concessions to ease the financial strain on home buyers. For first home buyers, there are exemptions and discounts available on stamp duty for properties valued up to $500,000. Additionally, if the property is purchased for a price between $500,000 and $750,000, a partial concession may apply. This helps reduce the upfront costs of purchasing a property and makes home ownership more financially feasible.

Keystart Home Loans

Keystart Home Loans is a state government initiative providing low-deposit home loans to eligible Western Australians. This program is particularly aimed at those who may not meet traditional lending criteria due to low deposits or other financial constraints. Keystart offers competitive interest rates and flexible lending options, making it easier for buyers to enter the property market.

Conclusion

Western Australian government incentives play a crucial role in supporting home buyers, offering various financial aids and concessions to make home ownership more attainable. Whether through grants, concessional schemes, or low-deposit loans, these programs are designed to alleviate some of the financial pressures associated with buying a home. Prospective buyers should explore these opportunities to take full advantage of the support available in their journey towards home ownership.

—————BOOK YOUR EXCLUSIVE 15 MINUTE ZOOM CONSULTATION————-

We offer a 10-minute no obligation consultation to existing property investors, first home buyers and small business owners who are looking at property investments, business and asset protection. To Book an Appointment simply click here and pick a time and date.

BOOK YOUR ZOOM APPOINTMENT HERE

How can we help?

General Advice Warning

Camden Professionals

Why Property Investment in Western Australia Is More Lucrative Than in Victoria and NSW

When it comes to property investment, Western Australia (WA) presents a compelling case for investors compared to Victoria and New South Wales (NSW). While Sydney and Melbourne have traditionally dominated the Australian property market, WA’s unique economic and market conditions offer several advantages that can make property investment in the state more lucrative.

Affordable Property Prices

One of the most significant advantages of investing in WA is the relatively affordable property prices. In Perth, the capital of WA, property prices are notably lower than those in Sydney and Melbourne. This affordability means that investors can enter the market with a lower initial capital outlay. In contrast, high property prices in Victoria and NSW often limit investment opportunities to more affluent investors or result in smaller properties with less potential for significant returns.

Higher Rental Yields

WA’s property market is particularly attractive due to its higher rental yields compared to Victoria and NSW. Perth, in particular, has offered some of the best rental yields in Australia. This is largely because, while property prices in Perth are more affordable, rental demand remains strong, particularly due to the state’s mining industry and FIFO workers. Higher rental yields mean better cash flow for investors, which can significantly enhance the profitability of a property investment.

Strong Economic Growth and Demand

Western Australia’s economy is buoyed by a robust resources sector, including mining and energy industries, which drive substantial economic growth and job creation. This economic strength supports a steady demand for rental properties as people relocate to WA for work opportunities. In contrast, Victoria and NSW face challenges such as high living costs and saturated property markets, which can limit rental growth and reduce investment attractiveness.

Favorable Market Conditions

WA’s property market is characterized by a period of correction and recovery, providing a more stable and potentially profitable investment environment. After experiencing downturns, the WA market has been on a path of gradual recovery, presenting opportunities for investors to benefit from rising property values. Conversely, Victoria and NSW have seen property booms and subsequent corrections, which can create a more volatile investment climate and increased risk for investors.

Tax Benefits and Lower Transaction Costs

Investing in WA can be financially advantageous due to favorable tax conditions and lower transaction costs. WA has competitive land tax rates and a more affordable stamp duty structure compared to Victoria and NSW. These factors reduce the cost of acquiring and holding investment properties, which can significantly impact overall investment returns. Additionally, WA’s state government often provides incentives for property development and regional investments, further enhancing the appeal for investors.

Potential for Long-Term Growth

The long-term growth potential in WA’s property market is substantial. The state is investing heavily in infrastructure projects, including transport networks and urban developments, which are expected to drive further economic growth and property value increases. Perth and regional areas are benefiting from these developments, which can lead to substantial capital gains over time. In comparison, the property markets in Victoria and NSW may face more uncertainty due to factors such as high debt levels and market saturation.

Diversification Opportunities

WA offers diverse property investment opportunities, ranging from metropolitan apartments in Perth to regional properties in areas like Bunbury and Geraldton. This diversity allows investors to tailor their property investments to their risk tolerance and financial goals. In contrast, Victoria and NSW’s property markets can be more homogeneous, which may limit diversification options and potentially expose investors to higher market risks.

Less Competition

In WA, investors might face less competition compared to the highly competitive markets of Victoria and NSW. This reduced competition can lead to better buying opportunities and less pressure on property prices, allowing investors to negotiate better deals and secure properties at more favourable terms.

In summary, property investment in Western Australia offers several advantages over Victoria and NSW, including more affordable property prices, higher rental yields, and favourable market conditions. With its strong economic performance, lower transaction costs, and potential for long-term growth, WA presents a compelling case for investors seeking lucrative opportunities in the Australian property market. By leveraging these benefits, investors can enhance their returns and build substantial wealth through property investment in this dynamic state.

—————BOOK YOUR EXCLUSIVE 15 MINUTE ZOOM CONSULTATION————-

BOOK YOUR ZOOM APPOINTMENT HERE

How can we help?

General Advice Warning

Camden Professionals

Perth Property Prices Set to rise 11%

Perth’s soaring property prices look set to continue to rise over the next 12 months, with conditions unlikely to change until more homes are built.

Limited new housing construction and a low number of properties available for sale have created a tight market. Additionally, rising material and construction costs have squeezed margins for developers, further stalling new developments.

Population growth in WA, with fewer residents leaving and more people moving in from other states, has intensified the demand for housing. High interest rates, the highest in 12 years, are also contributing to the difficulty of new housing projects. These factors suggest that housing prices in Perth are likely to remain high, with limited availability continuing to put pressure on the market.

According to PropTrack, property prices in the WA city are set to increase between 8 and 11 per cent, following growth of 18.9 per cent over the past year — the largest increase in the country. Nationally, house prices are expected to grow by about 5 per cent over the next 12 months.

PropTrack economic researcher Cameron Kusher said low housing availability continued to be a significant contributor to ballooning prices.

Perth house prices are predicted to rise between 8 and 11 per cent in the coming year
One economist says limited housing stock coupled with increased demand has contributed to the price hike
It comes after a 19 per cent increase in Perth property prices over the past year
Perth’s house prices have risen nearly $1000 a day – by far and away the most of any capital city, new major national agency data shows.

“There’s not a lot of new housing being built, and the available stock for sale in Perth is very low,” he said.

Another issue in Perth is that people aren’t listing their properties for sale, resulting in a scarce number of established properties on the market. Additionally, Western Australia’s population growth has exacerbated the stock shortage. Fewer people are leaving Western Australia for other states and territories, while more people are moving into the state, driving up demand for housing.

New builds in short supply

Currently there are about 23 per cent less houses on the Perth property market than the same time last year, with Perth experiencing the biggest annual decline of available houses across all of Australia’s capital cities.

But Mr Kusher said little was likely to change in the short term, with high interest rates and increasing material costs pushing up the price of the limited number of new homes being built.

“So, people are preferring to buy existing properties rather than new ones, as the premium for new homes is significantly higher than usual,” he said. “Margins have been squeezed because material and construction costs have risen so dramatically.”

Mr. Kusher noted that this issue is not unique to Perth. “It’s a challenge across the country. New housing isn’t being built because interest rates are the highest, they’ve been in 12 years, making new developments more difficult,” he said.

Source: PropTrack, ABC news

BOOK YOUR ZOOM APPOINTMENT HERE

How can we help?

General Advice Warning

Camden Professionals

Top 5 Perth Property Locations

Perth property prices recently hit new records. Data from the Real Estate Institute of Western Australia revealed Perth’s real estate market broke house price records across the 2022-2023 financial year. As July wrapped up, REIWA data also revealed Perth house prices beat the 2014 peak, reaching a new high of $560,000.

A new Hotspotting report on the Perth property market reveals that the growth is yet to stop, as Perth’s full potential has not been fully realised. Hotspotting Director, Terry Ryder, said Perth continues to be Australia’s strongest property market, with a busy and competitive housing scene and rising prices.

The housing market in Perth is expected to continue experiencing price increases in the near future, which can be attributed to the fact that it continues to offer affordability compared to other major cities in Australia.”

Perth property prices are predicted to grow by 8%, according to Westpac, with PropTrack also predicting strong dwelling price growth for Perth.

Perth’s top five property hotspots

City of Stirling
City of Canning
City of Armadale
City of Belmont
City of Gosnells

City of Stirling

Ranked as Hotspotting’s number one national growth star in the Autumn 2023 Price Predictor Index, the LGA is the largest in Western Australia and is the second largest employment area in the state.

Of the 24 Stirling suburbs in the winter analysis, 19 were found to have positive sales patterns – only one down from that of the Autumn report.

The attractive location and a growing range of quality amenities are also significant attractions for the area. According to reports it is unsurprising that the Stirling postcode of 6061 – Balga and Nollamara – now attracts some of the highest numbers of first home buyers in WA.

City of Canning

Another Perth location hailed for its affordability is the City of Canning, with many locations recording median house prices in the $400,000s to $500,000s range.

Most of Canning City suburbs recorded growth in their median house price in 2022 and in 2023 to date. Parkwood experienced a 10% annual rise to reach a median of $570,000 based on 79 sales.

Shelley also saw stand out annual growth of 19 per cent, based on 43 sales. Canning City’s average annual growth over the past decade remains modest at four to five per cent.

However, with the growth currently being experienced in this precinct, it’s likely these figures will improve in the near future according to Proptrack reports.

City of Armadale

Sitting close to an hour out of Perth, the City of Armadale also plays the affordability card well, with medians ranging between $300,000 to $400,000.

The Autumn 2023 edition of The Price Predictor Index found that the stand-out precincts were municipalities towards the bottom end of the Perth market, including the LGAs of Armadale and nearby Canning.

Of the 10 City of Armadale suburbs in the report’s analysis, seven were rising or consistent markets, which included Camillo (median house price $335,000), Kelmscott ($380,000) and the suburb of Armadale ($315,000). Armadale is the most affordable location and the most popular with buyers, recording 448 house sales in the past year, more than double the number sold two years earlier.

Camillo leads the pack, with its median house price up 14% from a year ago, according to CoreLogic data. Armadale and Seville Grove ($405,000) were not far behind, up 13%. Brookdale ($350,000) and Piara Waters ($625,000) both rose 12% over the year.

City of Belmont

Close to both the Perth CBD and the airport, the suburb is set to benefit from a range of major infrastructure projects, including the airport expansion, airport rail line, and Tonkin Highway upgrade. Rivervale is the busiest suburb for property sales in the LGA, recording 143 house sales and 327 unit sales in the year to May 2023, according to CoreLogic.

The suburb has seen its median house price increase by six per cent during this time to $625,000 and rental yields for houses in the LGA are typically 4.5% to 5.5%.

The best yields can be found in Cloverdale, where the typical yield of 5.5% is based on purchase price of $490,000 and a weekly rent of $480.

Units are generally cheaper to buy and typically priced in the $300,000s. Yields are higher in the unit sector – typically around 6.5% to seven per cent.

City of Gosnells

Next door to Armadale, this LGA is set to benefit from billions of dollars going into the shipping industry and renewables projects. More than 40,000 people are projected to move into the Gosnells LGA by 2036, which means around 20 new homes will need to be built per week. Like Armadale, the City of Gosnells tends to have homes within the $300,000 to $400,000 range.

Source: Core Logic, Proptrack, www.propertytribune.com.au

How can we help? if you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.

General Advice Warning

Camden Professionals

Build to Rent Tax Incentives

The Western Australian state government has moved to boost rental property supply in the state through a land tax exemption. Introduced in the May budget the new legislation provided a 50 per cent land tax exemption for eligible build-to-rent developments.

The government has introduced the Land Tax Assessment Amendment (Build-to-Rent) Bill 2023 to the state Parliament, providing a 50 per cent land tax exemption for up to 20 years for eligible build-to-rent developments.
According to the Western Australian government, these changes are part of its continued work to build the capacity of the state’s rental market and increase housing supply, with further incentives to bolster housing at the affordable end of the market funded in the 2023–24 state budget.

In order to qualify for the exemption, which will be available in the 2023–24 assessment year, a BTR development needs to:

Contain at least 40 self-contained dwellings available for residential leases
Be owned by the same owner or group of owners and managed by the same management entity
Be completed between 12 May 2022 and 1 July 2032

Exemption to be available from the 2023-24 assessment year.

A build-to-rent development is a housing development constructed for the purpose of providing multiple residential dwellings for lease under residential tenancy agreements.

Retrospective land tax would apply if an eligible build-to-rent development stops meeting the criteria within the first 15 years after the exemption is granted. Western Australia’s rental market is under pressure at the moment and the government is committed to doing what it can to help build its capacity.
The introduction of the new legislation to encourage more rental property builds comes after the WA government expanded its Urban Connect Home Loan pilot for those looking to buy one-bedroom apartments.

Urban Connect Home Loan Scheme

First launched last year, the Urban Connect Home Loan offers borrowers the ability to purchase apartments in medium- and high-density developments, close to transport hubs and in urban locations across 189 suburbs in the greater Perth area.

The initiative is being delivered by low-deposit lender Keystart and aims to make medium- and high-density living more accessible and help make property ownership easier for Western Australians.

It does this by offering mortgages to eligible borrowers seeking to buy off-the-plan, new and established apartments with a deposit of as little as 2 per cent, without having to pay lender’s mortgage insurance.

While the offering originally only covered off-the-plan, new and established apartments with a minimum of two bedrooms in a complex of two storeys or more, the criteria has now been expanded to one-bedroom apartments. It is only for apartments in the inner metro region or near selected rail transport hubs.

As with the original offering, the Urban Connect Home Loan is means-tested. It is available for singles earning up to $180,000 a year to purchase an apartment up to $560,000 or couples and families with a combined income of up to $200,000 a year, with a purchase limit of $650,000.

The Western Australian government has been spending a record amount on social housing and homelessness measures recently and announced that it would extend and expand its existing transfer duty rebate for off-the-plan purchases as part of major funding commitments unveiled in the 2023–24 State Budget to boost housing supply and choice across Western Australia.

The state government will spend $33 million to extend the existing off-the-plan transfer duty rebate to 30 June 2025, convert the rebate to a legislated duty concession and increase the thresholds to:

a 100 per cent duty concession for properties valued up to $650,000 (formerly $500,000); and phasing down to a 50 per cent duty concession for properties valued over $750,000 (formerly $600,000).

This cut in transfer duty aims to act as an incentive to build new apartments and boost housing at the affordable end of the market while adding density and vibrancy to urban areas. It will also provide more opportunities for Western Australians to downsize or buy their first home.

Source: wa.gov.au

General Advice Warning

Camden Professionals

How much money do you need to purchase a home or unit in Perth

The sizeable sums needed to secure and service a loan for a median-priced house are the result of 11 cash rate rises since May last year, which have slashed buyer borrowing power faster than prices and increased mortgage costs. With more rate rises still expected this year to slow down inflation, the biggest issue in the housing market is mortgage stress. We look at how much you need to earn to be able to afford a housing loan as well as what income levels are needed to avoid mortgage stress.

Although the house prices on the west coast continue to rise new Canstar modelling shows a Sydney buyer who purchased a house for about $1.46 million – the median price for the March quarter on Domain data – would have needed a gross annual income of $255,600 to have sufficient borrowing capacity to purchase with a 20 per cent deposit.

That is $50,700 more than was needed the previous March, despite a sharp fall in house prices since, and more than triple the $78,800 median pay of full-time employees last year, according to the latest Australian Bureau of Statistics figures. Average full-time earnings sit at $94,000.

Sydney house hunters need to earn more than $250,000 to borrow enough to purchase a typical home, while their Melbourne counterparts need almost $180,000, making homeownership near impossible for the average Australian. Brisbane and Perth buyers needed almost $145,000 and $124,000 respectively, requiring a pay rise of more than $27,000 from the previous year.

The table below sets out the data applicable to Perth.

How much income you need to purchase a unit in Perth and service the loan

	March 2022	March 2023	Change
Median house price	$364,054	$360,428	-$3,626
Loan amount (80% LVR)	$291,243	$1,167,885	-$107,469

Gross annual income (Single) required to…
Have sufficient borrowing power	$65,200	$78,500	$13,300
Avoid mortgage stress	$49,200	$70,200	$21,000

How much income you need to purchase a house in Perth and service the loan

	March 2022	March 2023	Change
Median house price	$633,762	$672,177	$38,415
Loan amount (80% LVR)	$507,010	$537,742	$30,732

Gross annual income required to…
Have sufficient borrowing power	$93,900	$123,900	$30,000
Avoid mortgage stress	$85,600	$130,800	$45,200

Notes:

The modelling assumed a single buyer purchased in March, when the cash rate was 3.6 per cent, with a 20 per cent deposit and no existing equity. It shows the income required to secure a 30-year loan with a variable mortgage rate of 6.13 per cent, and a 3 per cent interest rate serviceability buffer.

The cash rate has since lifted to 3.85 per cent and could rise again when the Reserve Bank meets on Tuesday.

Canstar group executive Steve Mickenbecker said the modelling showed how challenging the market was for first home buyers, and noted the situation had likely worsened since earlier this year – given another increase to the cash rate and an uptick in property prices. In Perth, a buyer would need a $30,000 increase in income as at March 2023, when compared to purchasing a home in 2022 – the average household income required in 2022 was $93,900 compared to $123,900.

“For single first home buyers, 99 per cent of them are going to be excluded from buying a house at the median price,” Mickenbecker said.

AMP Capital chief economist Dr Shane Oliver said first home buyers would find it almost impossible to get into the market at the median house price. “Prices are still down from their highs, so that is helping, but the roughly doubling interest rates are working against that,” Oliver said. “That means even if you have a 20 per cent deposit saved up, you’d be struggling to buy at the median.”

“Tax data shows that only 1 per cent or 2 per cent of Australians earn above $180,000 a year, so you’d have to be relying on having two high-income earners, or alternatively, relying on the Bank of Mum and Dad to be able to buy,” he said.

Oliver said with inflation at 6.8 per cent, there was likely another rate rise to come on this month, or next month. The Agency’s Catherine Murphy said first home buyers had been able to stretch themselves to buy at close to the median house price, when interest rates were at record lows, but were now priced out.

Source: Canstar & smh.com.au

How can we help?

General Advice Warning

Camden Professionals

Where is the Perth property market heading?

REIWA’s 2023 property market quarterly update estimates Perth house prices will remain steady in the first half of 2023, while rent prices will continue to increase. “Perth’s median house price increased marginally in the first quarter of the year, rising 0.9 per cent from $540,000 at the end of 2022 to $545,000 at the end of March,” REIWA CEO Cath Hart said. If you are an investor then the prospects for capital growth are stronger in the West than the East coast.

The local market has shown remarkable resilience in the face of 11 interest rates rises, backed by strong demand and affordable prices. It is expected that prices will continue to hold firm in the next quarter even if there are one or two more rate rises. However, should we see a period of interest rate stability or even cuts, we would expect to see consumer confidence rise, boosting activity and prices. Low price growth is still a strong possibility across the remainder of 2023.

It is a different story in the rental market, with prices up 5.8 per cent since the end of 2022. “This has been fuelled by declining supply and increasing demand and more rent price increases are expected this year,” Ms Hart said.

Perth sales market

Properties continued to sell quickly in the first quarter of 2023, with good numbers at home opens and many properties still receiving multiple offers. Homes sold in a median 13 days in March,” Ms Hart said. The number of listings for sale hit a twelve year low of 6,931 at the end of December 2022 and we have seen the number of properties for sale drop even lower than that recently.

Properties are still coming to the market at good numbers, and at levels higher than pre-COVID, so the low number of listings on www.reiwa.com is more a reflection of the speed of sales, rather than a lack of properties.

Demand for housing in WA is expected to stay relatively strong, supported by population growth. WA’s population grew 1.8 per cent in the year to September 2022 and the State Government’s recent Mid-Year Budget review forecast further growth of 1.5 per cent in 2022/23 and again in 2023/24.

As more people arrive in WA, this will maintain the demand for housing and keep listings low. And with such tight rental conditions, more people will look to buy rather than rent. Long-awaited building completions remain a wild card for both sales and rental markets. As more COVID building-incentive new homes are completed, there may be an easing in both markets, but this will be offset by population growth according to the REIWA.

New home approvals have also been falling, so this will also affect housing supply in the future, which will result in increases in prices.

Perth rental market

2023 has already proved to be challenging for tenants. The vacancy rate was 0.7 per cent in January, February and March. Homes are leasing in a median 14 days and property managers are still seeing queues at home opens and receiving multiple applications. Declining supply and increasing demand are at the heart of the issues the rental market is facing. Property investors are not entering the market in the post COVID era with 800 fewer rental properties available now than at the start of the year and a decline of 19,200 since January 2021. Although there is interest from Eastern State investors who see value in the WA market, it hasn’t been enough to replace the properties that have been lost.

The proposed changes to the Residential Tenancies Act (RTA), and calls for other reforms such as rent capping and limiting when increases can take place, remain a concern for the remainder of 2023.

According to the REIWA, he vast majority of rental stock in WA is owned by small, private investors and they are listening to the debate over rental reform in various states and they’re nervous about some of the changes being considered.

There are already significant pulls to exit the WA market with 10 interest rate rises, a bulk of mortgages set to switch from fixed to variable-rates this year and a broad recovery in WA home values post-COVID.

Regional WA

Market conditions across regional WA are expected to remain strong in 2023. All regional centres saw median price growth in 2022 although, like Perth, the rate of growth has been slowing. Regional centres are also experiencing low vacancy rates and rising rent prices and this will continue. Regional centres will also benefit from population growth. It won’t just be Perth that feels the effects of population growth, particularly interstate and overseas immigration,” Ms Hart said. Some migrants will move to the regions, which will support these property markets as well.

WA Rental Reforms – What this means for Landlords and Tenants

With the announcement of reforms to the Residential Tenancies Act 1987 last week, there are plenty of questions about what the reforms will mean in practice, how they will be implemented, and when. We have compiled a summary of the reforms and the most Frequently Asked Questions.

What is the Residential Tenancies Act?

The Residential Tenancies Act 1987 (or RTA) is the law that outlines the rights and responsibilities of tenants and landlords in Western Australia, as well as providing the process for settling disputes.

Why is the RTA important now?

Delays in new home building completions caused by labour and material constraints over the past couple of years have meant the supply of housing has just not kept up with demand. Perth’s vacancy rate is currently sitting at 0.7% making it incredibly difficult for tenants to find a home. For owners, soaring interest rates and invasive regulatory changes are causing them to leave the rental property market, with more than 19,200 rentals lost across WA since January 2021. By contrast, more than 70,000 people have chosen to make WA their home since then.

It’s been more than 10 years since the State’s rental laws have been reviewed and a lot has changed. After a three-year review, the State Government has announced an update to the RTA that if feels will balance the demands of both renters and landlords in a challenging environment by providing greater flexibility for prospective tenants, as well as investor certainty and ownership control.

What has the State Government announced?

After much consideration, the State Government has announced the following proposed changes to the RTA:

no changes to no – grounds terminations
prohibiting the practice of rent bidding, with landlords and property managers unable to pressure or encourage tenants to offer more than the advertised rent
reducing the frequency of rent increases to once every 12 months
tenants will be allowed to keep a pet or pets in a rental premises in most cases
tenants will be able to make certain minor modifications to the rental premises and the landlord will only be able to refuse consent on certain grounds
the release of security bonds at the end of a tenancy will be streamlined, allowing tenants and investors to apply separately regarding how bond payments are to be disbursed
disputes over bond payments, as well as disagreements about pets and minor modifications will be referred to the Commissioner for Consumer Protection for determination

What do these changes mean for me?

The State Government believes a balance has been struck between the need for reform and the need to incentivise investment that builds rental supply in Western Australia. For both renters and prospective renters, these changes will allow for a more modern lease, with more freedom and flexibility to choose how they can turn a house into a home.

For investors, these changes will not unduly impact the rights of the property owner. These proposals will also draw a line under tenancy reform in Western Australia, which will encourage certainty for investors currently in the market, as well as prospective investors.

Source: REIWA

How can we help?

General Advice Warning

Camden Professionals

WA’s State Budget unveils plans to boost housing

Western Australia’s State Budget this year has laid out several policies that would support the local housing market.

Among the policies is the amendment to Keystart’s Urban Connect pilot program, which will now include one-bedroom apartments.

The program, which provides Urban Connect Home Loans, creates an opportunity for buyers to break into the market without having to shell out a huge amount for a deposit. Urban Connect was first rolled out last year, with the aim of supporting medium and high-density living. The program was originally intended for buyers gunning for apartments with at least two bedrooms.

Housing Minister John Carey said the expansion of the program’s eligibility shows the government’s commitment to provide support would-be buyers in the state. Meanwhile, there are talks for a new Keystart loan program that will help customers secure pre-sale off-the-plan properties.

Tax reforms and incentives

Also included in the state government’s commitments this year is delivering tax reform and incentives to boost housing and land supply.

The government will set aside $33m to fund the off-the-plan transfer duty concession that will run until the end of June 2025. “We continue to deliver a range of important tax reforms and incentives that will provide a boost to housing and land supply, while continuing to work with industry to cut red tape,” Mr Carey said.

“Our commitment in this Budget to extend the off-the-plan transfer duty rebate and lift the threshold for exemptions and concessions is a clear incentive to build new apartments and provide more opportunity for Western Australians to downsize or buy their first home.”

Here are the changes to the thresholds for exemptions and concessions:

100% concession for properties valued up to $650,000 (up from $500,000).
Phasing down to a 50% concession for properties valued at more than $750,000 (from $600,000)

These changes build on the state’s measures to boost housing supply throughout Western Australia, building on the $80m Infrastructure Development Fund, which removes headworks barriers to new housing developments. The state government is also delivering $55m in strategic water and wastewater infrastructure to unlock more than 15,000 new homes across Perth.

Off-the-Plan Transfer Duty Rebate

The extension of the Off-the-Plan Transfer Duty Rebate for another two years and changing the incentive from a rebate to a concession is a direct response to UDIA WA advocacy and will provide certainty for both developers and buyers looking to purchase an apartment off-the-plan.

The Off-the-Plan rebate was available for people who enter a pre-construction contract to purchase a new residential unit or apartment off the plan. Making the rebate a legislated duty concession means that purchasers will have their stamp duty concession recognised up front at contract stage rather than having to pay the duty and then claim the rebate upon settlement.

For apartment projects in particular, developers rely heavily on presales to make a project viable, so these measures will assist in building much needed consumer confidence and attracting investors to this sector of the market. Combined with already announced land tax concessions for Build-To-Rent which are now supported by recent Federal Government taxation changes, future supply of rental accommodation is also looking brighter following the budget announcements.

Keystart

This week’s budget makes an ongoing Investment in social housing while also continuing to use Keystart as a lever for the provision of more affordable housing.

Keystart is a low deposit lender aimed at providing an affordable pathway to home ownership in WA.

Amendments will be made to Keystart’s pilot ‘Urban Connect’ program, which boosts housing at the affordable end of the market and supports infill development, which will now also enable customers to secure pre-sale off-the-plan properties.

Other small wins in the budget include investment in attracting more skilled migrants to the building and construction sector and further investment in social housing and homelessness.

How can we help?

General Advice Warning

Camden Professionals

Tax Deductions & Accounting Tips for Airbnb owners

Airbnb rentals are becoming a popular choice for many property owners. By matching property owners with potential guests, it’s an alternative accommodation renaissance. As a landlord, you set the price and conditions while guests get a personal touch and insight into the area.What are the tax implications of owning an Airbnb property?

Rental Income and Tax Returns

The income that you get from your Airbnb rent will normally be deemed assessable, given that the property is advertised to the public online. The ATO may attempt to argue you’re not charging a commercial rent, particularly if you’re making a loss on your Airbnb venture.

Claiming Tax Deductions

You can claim tax deductions for all expenses which are incurred in deriving your rental income. Typically, where the entire property is rented out, all of the costs involved in running the property will be deductible. Where you rent out part of the property you’re living in, some degree of apportionment is needed. If you’re a landlord for a rental property with assessable income, you may be entitled to tax deductions for expenses incurred. These expenses fall into three categories:

Expenses directly associated with the rented area can be deducted in full
Expenses related to shared areas need to be apportioned
Expenses related to the host’s private area only cannot be deducted.

Expenses that may be deductible in full include:

Depreciation of furniture used in the rented room
Commercial cleaning of the rented area
Repairs and maintenance
Food, such as breakfast provisions, made available to the guest
Professional photography for the listing
Service fees and commissions charged by Airbnb

Expenses relating to the entire property

Where there are expenses that relate to the entire property, you’ll need to apportion them between the rented area and the area you use privately. This is most often done based on the floor area used for renting compared to the total floor area of the property.

Some examples of expenses that relate to the entire property that may be apportioned include:

Mortgage interest or rent
Council rates
Utilities

Expenses relating to shared areas

Expenses that relate to shared areas can be apportioned based on access. So, if the renter and the landlord both have equal access to, say, the lounge and the kitchen, you can deduct 50% of these expenses.

Examples of expenses that relate to shared areas only include:

Depreciation on furniture and appliances located in shared areas (such as sofas, TV’s, kitchen equipment)
Internet, phone and cable TV costs

When rental expenses rental income

If rental expenses exceed rental income, you’ll make a loss. The excess of rental expenses over rental income (the loss) can effectively be claimed against your other income such as salary. Care is required if that is the case. As noted above, the ATO may seek to argue that you are charging a non-commercial rate of rent (i.e. a rate lower than market rate). If successful, they could limit the rental deductions to the extent that they exceed the amount of rental income received.

Where you rent out a whole property, expenses are only deductible where an area of the house is either actually rented out, or available for rent.

For example, where a property is available for rent for 180 days a year then only the portion of rental expenses that were incurred over that 180-day period are deductible.

Note, it is not a requirement that the property is actually rented for the (in our example) 180-day period for rental expense deductions to be claimed. The property simply needs to be available for rent. Therefore, even if no guests stayed on the property during the 180-day vacancy period, if the property is advertised on Airbnb as vacant and available for rent, you can still claim deductions for the 180 day period.

Where you rent out only part of the property (such as a bedroom with access to shared areas in the property where you live), you can only claim expenses for the period the room is actually rented. So, if you only rented the room for two weeks in a year, you can only claim the proportion of expenses for the rented part of the property which related to that two week period. This is to stop you claiming deductions for periods where the room might be used for private or domestic purposes, even though it was notionally available for rent.

Capital Gains Tax

In most cases, when you sell your private residence, the sale is free of capital gains tax. However, if you have used part of the property for income earning activities, like renting it out through Airbnb, part of the gain will be taxable. This might mean that you have to do a tricky calculation on sale to work out how much of the gain is taxable and how much is covered by the main residence exemption.

This is an area that catches out many Airbnb hosts, many of whom are completely unaware of the CGT implications of renting out part of their home. Given the potentially long time lag between starting to rent out the property and ultimately selling it, CGT can be a costly trap for those who haven’t factored it into their cost/benefit analysis when they first decided to make part of the property available for rent.

Typically, the floor area calculation used in working out your deductible expenses will also be used here. Starting from the date on which the property was first used to generate income, a proportion of the gain based on the floor area which was available for rent will be chargeable to tax. This gain will also usually qualify for the 50% Capital Gains Tax discount.

When you need to register for GST

Good and services tax (GST) don’t apply to residential rents, so you’re not liable for GST on the rent you charge, and can’t claim GST credits for associated costs. This is the case even if your turnover exceeds the GST threshold of $75,000.

Lets look at an example:

Sally owns a house with two furnished bedrooms. She advertises the rooms separately on Airbnb to guests who pay to rent the rooms on a nightly or weekly basis. Sally provides linen only. Renting out a room in your house is an input taxed supply of residential rent. Sally isn’t required to charge GST, but similarly won’t be able to claim GST included in expenses she incurs in renting out the rooms.

At year’s end, Sally includes all the rental income in her tax return and claims a deduction for the fees charged by Airbnb. She also claims for a proportion of her mortgage, electricity and other renting expenses. If Sally sells the home, she’ll have capital gains to account for as the home has been used partially for rental income purposes.

Record keeping

The ATO has its eyes on those using Airbnb to make a few extra dollars. To stay above board, keep proper records of all income earned and allowable deductions for which you’re claiming. This includes details of how you’ve apportioned expenses which are partially for private use.

Tax Tips for Airbnb hosts

Get advice from your accountant before becoming an Airbnb host. Make sure you are fully across all the potential tax impacts of renting your property before you list it. Get a market valuation of the property at the date you start renting it out. This can be essential for CGT purposes, particularly where the house you are renting out is also the one you live in.

Disclose all you Airbnb income in your tax return and make sure you claim all the deductions you are entitled to. Consider getting a quantity surveyors report to maximise your depreciation deductions. Keep records of all your income and expenses. The ATO may ask to see them, particularly if they query an expense.

How can we help?

General Advice Warning

Our services

Meet The Team

Why Camden

Our Clients

Who we work with

Knowledge Base

Tools

Insight Articles

Case Studies

Frequently Asked Questions

Western Australia property outlook August 2025

Western Australian Government Incentives for Home Buyers

Why Property Investment in Western Australia Is More Lucrative Than in Victoria and NSW

Perth Property Prices Set to rise 11%

Top 5 Perth Property Locations

Build to Rent Tax Incentives

How much money do you need to purchase a home or unit in Perth

Where is the Perth property market heading?

WA’s State Budget unveils plans to boost housing

Tax Deductions & Accounting Tips for Airbnb owners