Introduction

Buying your first home or investing in property can feel like a massive step - and let’s be honest, it can be a bit nerve-wracking too. At Mountway Finance, we get it. That's why we've created this guide - to break down every part of the process so you can focus on your future, not the fine print. Whether you’re a first home buyer or a seasoned investor, this guide is packed with real talk, expert tips, and the latest info to help you make the smartest move in Perth’s property market.

What's Happening in the Perth Property Market (2025)

Let’s start with the numbers. As of June 2025, the median house price in Perth is sitting at $786,000, while the median unit price is around $540,000. That’s a steady lift – house prices are up about 0.8% from last month and roughly 16–20% higher than this time last year. Even with this growth, Perth is still more affordable than Sydney or Melbourne, keeping it a top pick for buyers chasing value.

Why the surge? It’s still a classic supply-and-demand story. Perth’s population is growing fast, there’s a shortage of homes, and new infrastructure projects are making more suburbs attractive. The resources sector is also thriving, pulling more jobs and people into WA.

But it’s not just about the numbers. Perth offers a lifestyle that’s hard to beat – think beautiful beaches, a relaxed vibe, and a café and restaurant scene that keeps getting better. It’s a city where you can have it all: a solid career, an affordable home, and that chilled-out coastal life.

Mortgage Rates: What You Need to Know

Mortgage rates are always changing, and they can make a big difference to your repayments. Right now, the average 30-year fixed rate is around 6.87%. Variable rates are closely tied to the Reserve Bank of Australia’s cash rate, which is currently 3.85%. The good news? Recent rate cuts have made things a bit easier for buyers, but with property prices on the rise, it’s still important to know your numbers.

Not sure whether to go fixed or variable? Fixed rates give you certainty for a set period (usually 1-5 years), while variable rates can go up or down with the market. If you're worried about rates rising, a fixed rate might give you peace of mind. On the other hand, if you think rates will fall, a variable rate could save you money in the long run.

A good broker (like us!) can help you work out what’s best for your situation. We can compare rates from different lenders and help you find a loan that suits your needs and budget.

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Perth Property Market Forecast: What’s Next?

So, what’s on the horizon for Perth’s property market? Most experts are tipping prices to keep climbing, with forecasts of 4% to 7% growth over the next year. That’s thanks to strong demand, limited supply, and a rental market that’s tighter than ever.

If you’re an investor, rental yields in Perth are some of the best in the country, and vacancy rates are at record lows. This means you can expect a good return on your investment. For first home buyers, this means more competition — but also more opportunities if you know where to look.

We've broken down exactly how to buy your first home

Experts are also pointing to several key factors that will shape the market in the coming months:

1. Population Growth: Perth's population is growing faster than any other capital city in Australia, which is putting pressure on the housing supply.

2. Infrastructure Development: New transport links and other infrastructure projects are making more suburbs attractive to buyers.

3. Economic Growth: WA's economy is strong, thanks to the resources sector, which is creating jobs and driving demand for housing.

Affordability: Can You Really Buy in Perth?

We get it—buying a home is a big financial commitment. The good news is, Perth is still one of Australia’s most affordable capital cities. Here’s what you need to know:

Cost of Living
Everyday expenses like groceries, transport, and utilities are generally lower in Perth than in the eastern capitals. That means your pay goes further, making it easier to manage a mortgage and household bills. According to recent studies, Perth's cost of living is around 10-15% lower than Sydney or Melbourne.

Wages vs. Housing Costs
Wages in Perth are on par with other big cities, but property prices are lower. This gives you a better price-to-income ratio—a big win for first home buyers and young families. The average full-time wage in Perth is around$90,000 per year, which means you can afford a mortgage on a decent property.

Hidden Costs
Don’t forget about stamp duty (unless you’re eligible for a concession), council rates, water rates, insurance, and ongoing maintenance. These can add thousands to your annual costs, so it’s smart to budget for them upfront. Council rates can range from $1,200 to $2,000 per year, while water rates are typically around $1,000 per year. Home insurance can cost anywhere from $800 to $1,500 per year, depending on the level of cover.

Strategies to Improve Affordability
Take advantage of government grants and stamp duty concessions, consider suburbs with lower median prices, or look at units and townhouses as a first step. Keystart and other low-deposit home loan options can help you get in sooner. You can also look at rent-to-buy schemes, which allow you to rent a property for a set period with the option to buy it at the end of the term.

If you’re not quite ready to buy, keep in mind that Perth’s rental market is tight, with low vacancy rates and rising rents. This is pushing more people to consider buying, especially with government support available. Vacancy rates are currently below 1%, which means it's hard to find a rental property. Rents have also been rising sharply, making it more attractive to buy your own home.

Best Perth Suburbs for First Home Buyers and Investors

Choosing the right suburb can make all the difference—whether you’re after lifestyle, value, or future growth. Here’s a breakdown of the top picks for 2025:

Stamp Duty-Free Suburbs (Median House Price ≤$450k)

Medina, Calista, Midland, Armadale, Brookdale, Middle Swan, Mandurah
These are the only Perth suburbs where first home buyers can currently buy a house stamp duty-free, thanks to the WA government’s 2024 changes. This can save you up to$15,390 in upfront costs. These suburbs are located in the outer metropolitan area, offering a more affordable lifestyle with good access to amenities and transport.

Affordable Suburbs Within 10km of the CBD

Nollamara, Cloverdale, Redcliffe, Ashfield, Belmont (houses) OR Osborne Park, St James, Glendalough, Redcliffe, Tuart Hill (units)
These offer a rare mix of city convenience and affordability, with median prices for houses ranging from $380k to $440k, and units from $245k to $290k. These suburbs are popular with young professionals and families who want to be close to the city.

Best Value & Growth Hotspots

Baldivis, Alkimos, Ellenbrook, Byford, Canning Vale, Wellard, Morley, Madeley, Yanchep, Midland
These suburbs are further out but offer better value, new infrastructure, and strong growth potential. They’re popular with young families and first home buyers who don’t mind a longer commute for a bigger, newer home. These suburbs are also benefiting from new shopping centres, schools, and transport links.

Key Trends

Perth’s population is booming, so demand is high - especially in suburbs with good transport, schools, and lifestyle options. Detached homes are still the dream for most buyers, but well-located units are a smart entry point. Infrastructure upgrades (like new train lines) are driving future price growth. Government grants and stamp duty concessions are making a real difference, but only in select suburbs.

When choosing a suburb, it's important to consider your lifestyle, budget, and long-term goals. Do you want to be close to the city, or are you happy to live further out? Do you need good schools and parks for your kids? Are you looking for a quiet, family-friendly area, or a vibrant, trendy neighbourhood?

Government Grants and Incentives for First Home Buyers

There’s a stack of support out there to help you get into your first home. Here’s what’s on offer in WA for 2025:

First Home Owner Grant (FHOG)

$10,000 for buying or building a brand new home (not available for established homes).
Applies to houses, units, apartments, townhouses, and some relocatable homes.
Price cap: Up to $750,000 (south of the 26th parallel) or $1 million (north of the 26th parallel).
You must live in the home for at least 6 months within the first 12 months of settlement or completion.
This grant can help you cover some of the upfront costs of buying a new home, such as stamp duty and legal fees.

Stamp Duty Concessions

Full exemption on stamp duty for homes up to$450,000.
Discounted stamp duty for homes priced between $450,000 and $600,000.
For vacant land, full exemption up to $300,000, and concessional rates up to $400,000.
Stamp duty is a tax that you pay when you buy a property, and it can add thousands of dollars to your upfront costs.
These concessions can make a big difference to your budget.

Keystart Low Deposit Home Loans

WA’s unique government-backed lender, Keystart, offers home loans with as little as 2% deposit (plus fees).
No lender’s mortgage insurance (LMI) required, which can save thousands.
Available to first home buyers and some repeat buyers who meet income and property value limits.
Keystart loans are designed to help people who might not be able to get a loan from a traditional lender.

Shared Home Ownership (Keystart)

Buy a share (usually 70–80%) of a property, with the Housing Authority owning the rest.
Lower deposit and repayments, with the option to buy out the government’s share later.
This scheme can help you get into your own home sooner, without having to save a large deposit.

First Home Super Saver Scheme (Federal)

Save for your deposit using your superannuation fund, with tax benefits.
Can withdraw up to $50,000 (individual) or $100,000 (couple) of voluntary contributions for your first home.
This scheme can help you save for a deposit faster, by taking advantage of the tax benefits of superannuation.

Home Guarantee Scheme (Federal)

Allows eligible first home buyers to buy with as little as 5% deposit, with the government guaranteeing up to 15% of the loan (no LMI).
Regional First Home Buyer Guarantee is also available for those buying in regional WA, including many Perth outer suburbs.
This scheme can help you get into your own home with a smaller deposit, without having to pay LMI.

Key Takeaway

The biggest savings come from the FHOG (if buying new), stamp duty concessions, and Keystart’s low deposit loans.
Most grants and schemes have eligibility rules around income, property value, and residency.
Combining state and federal incentives can make a big difference to your upfront costs and borrowing power.
It's important to do your research and find out which grants and schemes you're eligible for.

Ready to Make Your Perth Property Move?

Navigating the Perth housing market and understanding mortgage rates can feel like a big journey, but you don't have to go it alone. We've covered everything from current prices and future forecasts to government grants and the step-by-step home loan process, all to empower you with the knowledge you need.

At Mountway Finance, we're more than just brokers; we're your local Perth property partners. We live and breathe this market, and our goal is to help you confidently take that next step, whether you're buying your first home, investing, or simply looking to understand your options.

We believe in clear, honest advice that puts your future first. So, if you're feeling ready to turn your Perth property dreams into a reality, or even if you just want to explore what's possible, we're here to guide you.

Perth Property: Your Complete Guide to Buying in 2025