As 2025 draws to a close, the President of the Real Estate Institute of Western Australia (REIWA), Suzanne Brown, has delivered a sobering assessment of the year that was for the state's property sector. It was a period that placed significant strain on all participants, from desperate buyers to anxious sellers and struggling tenants.
A Market of Frustration and Compromise
For those looking to purchase a home, the year was defined by palpable frustration. Bidding wars became the standard experience, with homes frequently selling for well above their listed price mere days after hitting the market. This intense competition dealt a heavy blow to many first homebuyers, who found themselves repeatedly outbid despite diligent saving, watching their ownership dreams fade.
The severe shortage of available properties forced widespread compromise. Buyers often had to sacrifice their preferred location, accept a property in poorer condition, or sometimes both, simply to secure a foothold in the market.
The Seller's Dilemma and Tenant Hardship
Sellers, while benefiting from strong prices, faced their own unique pressures. The anxiety of securing a suitable new home often overshadowed any excitement about a successful sale. Many felt trapped in a cycle, unable to sell without knowing where they would go next, yet unable to secure their next property without having sold first.
The situation for tenants in 2025 was particularly dire. Record-low vacancy rates and relentless rent increases forced many Western Australians into difficult decisions. Families downsized, young people delayed moving out of home, and countless individuals experienced genuine housing stress. Competition for rentals was fierce, with dozens of applicants vying for a single listing.
An Industry Under Pressure
Real estate professionals were not immune to the market's strains. Agents managed unprecedented enquiry volumes, fielded countless disappointed calls, and worked tirelessly to match scant supply with overwhelming demand. Brown highlighted the emotional toll on the industry, noting the heavy burden of delivering bad news to hopeful clients week after week.
Looking ahead to 2026, the REIWA President's wish is for a return to equilibrium. She hopes for a market where buyers can purchase without desperation, sellers can move with confidence, and tenants can find affordable, suitable homes. Concluding her review, Brown extended wishes for a peaceful Christmas and a New Year that brings the housing outcomes so many are desperately seeking.
