The suburbs where property prices boomed in 2025

“Investment properties are also attractive in areas where there is plenty of room for increased rental yields.”

But while prices in the areas appear to be rising, Cheryl Eley, of Kalbarri estate agents at the Agency, said the data could be a bit misleading.

“Although we are definitely seeing growth, the market is very small – there are only around 3,000 homes in Kalbarri,” he said.

“If we sell a few homes valued at $1 million or more, our average price will go up.”

Eley said that he recently sold two houses for more than this price and one house for more than 2 million dollars. Interest in the area has been revived and there is a trend towards houses where the owners live after a new mining area was opened near the town and job opportunities were opened.

“There are more families and retirees living in the town now; you can’t deny there are still plenty of holiday homes, but there’s definitely been a change,” he said.

The report found that the housing market (both regionally and metro area) continues to grow at rapid rates, defying intense affordability and cost-of-living pressures.

This may be due to buyers’ fear of missing out, Owen said.

In November, there were 11,000 properties for sale statewide, compared to the historical average of 21,000, and in the Perth metropolitan area there were 8,500 compared to 15,000.

Total stock levels in Western Australia were 47 per cent below the historical five-year average in November.

“There is a strong sense of urgency reflected in the time spent on the market, with properties selling in 12 days compared to the national average of 30 days,” Owen said.

But price growth was much weaker in pricier inner-city areas such as Cottesloe, Leederville and Shenton Park, where median home values are well above $1 million.

In terms of units, Cockburn Central recorded the smallest change in value, followed by Rockingham and Doubleview.

But Owen said no suburbs in the metro area experienced depreciation.

Only Gingin recorded a fall in house values (down 0.2%) and South Hedland recorded a fall in unit values (down 14.1%) despite recording the highest increase in rental costs.

The most expensive suburb in WA was Peppermint Grove, where the average price of houses was more than $4 million; In Norseman, the state’s most affordable suburb, homes cost $103,349.

In Baldivis, the state’s most popular suburb, 1,023 homes were sold in the 12 months to September, with an average value of $819,288.

Last year, Perth’s home values increased by 13.1 per cent, the second highest increase after Darwin, and regional WA home values increased by 15.3 per cent over the same period.

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