In Western Australia, the Australian Labour Party (ALP) won a landslide victory in the 2025 federal election on May 3, 2025, taking control of the Senate and 11 of 16 House of Representatives seats. Several industries are anticipated to be impacted by this political change, with housing supply and affordability emerging as major election concerns.  

The public wants more accessible housing and more assistance for developers, tenants, and homeowners, as seen by the ALP’s strong mandate.

These election results are significant in Perth.  Voter attitude was heavily influenced by local housing issues, such as growing real estate costs, a shortage of available housing, and worries about affordability.  

The Perth real estate market may see significant changes in the upcoming months as a result of the incoming government’s plans, which are expected to concentrate on expanding the supply of housing, improving infrastructure investment, and providing incentives for affordable housing.

For investors, homeowners, and tenants, Bargoti Real Estate is essential in deciphering these policy consequences because of its in-depth knowledge of local market dynamics.  

They can predict how these national policy changes may manifest as real opportunities or threats in the Perth residential property market thanks to their local knowledge, which helps customers make well-informed, strategic decisions in a quickly changing environment.

Election Results & Political Landscape in WA

1. Western Australia’s political environment saw a sea change in the 2025 federal election when Labour garnered the most votes in the state’s history, 55.8% of the two-party preferred vote.  

2. The ALP won 11 of Western Australia’s 16 federal House seats as a result of this resounding victory, demonstrating widespread public support for the party’s policies, especially those related to housing.

3. The steady reelection of the Labour government in WA state added to this momentum and brought about an unusual political alliance between the federal and state governments.  

4. The housing industry benefits significantly from this alignment since it opens the door for unified and well-coordinated policymaking.  Reforms might be implemented more quickly because housing availability, affordability, and incentives are top priorities for both levels of government.

5. This united front is anticipated to expedite development projects, expedite finance approvals, and implement policies that directly address affordability issues.  For Perth, this entails increased infrastructure investment to sustain long-term urban expansion, better buyer incentives, and a probable increase in the housing stock.

6. For Perth’s real estate market, Bargoti Real Estate believes that this convergence marks a turning point that will present new chances for investors, developers, and buyers to navigate a more cooperative and coordinated political and economic landscape.

Key Policies & Their Perth Implications

1. First‑Home Buyer Schemes

Labour’s increased assistance for first-time homebuyers is a key component of their housing policy. To build 100,000 new dwellings by 2027–2028, the federal government has pledged AU$10 billion.  

The entry hurdle to homeownership will be significantly reduced since these residences will be available to qualified first-time buyers with only a 5% down payment and no lender mortgage insurance.

The First Home Guarantee and Help-to-Buy programs in Perth have been expanded to better suit the local market, with more flexible income levels and higher home price caps of up to AU$850,000.  

In response to the increasing demand from younger buyers and lower-to-middle-income households, these modifications are intended to increase homeownership in entry-to-mid-tier suburbs.

Effect on the Real Estate Market in Perth:

• In important growth corridors like Baldivis, Ellenbrook, and Joondalup, where homes meet the new scheme thresholds, these policy changes are already encouraging buyer activity.  
• However, price pressure may increase in these locations if the supply of housing cannot keep up with the growing demand.  
• Enquiries in these suburbs have surged, according to Bargoti Real Estate, especially from first-time homebuyers looking to take advantage of new incentives.  
• As a result, buyers must contend with a more competitive market, while sellers and investors may gain from increased competition.

2. Interest Rate & Macro Context

Australia has started a cycle of interest rate reductions in 2025; the first one took place in February, and the second one followed the federal election.  

In response to declining inflation and the need to promote economic development and housing affordability, the Reserve Bank has implemented monetary easing. By the end of the year, rates may decrease from 3.85% to roughly 2.25%, according to forecasts.

Impact on Perth’s Property Market

• These rate reductions drastically lower borrowing costs, increasing the accessibility of mortgages, particularly for previously priced-out investors and first-time homebuyers.  
• Generally speaking, lower interest rates increase buyer confidence and borrowing power, which raises home market demand.
• This change is particularly significant for Bargoti Real Estate in Perth suburbs with high rental yields, as these are the areas where investors are most likely to re-enter the market in search of steady returns and capital development.  
• By mid to late 2025, as affordability improves and buyer sentiment improves, Cannington, Gosnells, and Wellard may see increased activity.  
• As lower rates fuel a more dynamic residential property environment, Bargoti expects rapid movement in these locations, with potential price rise and heightened competition.

3. Tax Policy: Negative Gearing & Capital Gains Tax (CGT)

The Labour administration has decided to keep the current negative gearing regulations and capital gains tax (CGT) incentives in place in the wake of the 2025 federal election, providing security and continuity for real estate investors.  

This implies that investors can continue to take advantage of the current CGT discount on long-term holdings and deduct losses connected to real estate from their taxable income.

The government has not embraced third-party proposals, like those from the McKell Institute, that propose changing CGT concessions to benefit new-build investments (for example, providing a 70% discount for new constructions vs a 35% reduction for existing homes).  

Similarly, the present ALP policy framework does not include the Greens’ proposals to limit the number of investment properties that each individual can hold to two.

Impact on Perth’s Property Market

• This policy’s continuity reassures investors and allows them to move forward without worrying about abrupt tax reform.  
• Bargoti Real Estate interprets this as encouraging, particularly in the high-yield districts of Perth, where rental returns are still appealing.  
• Areas like Armadale, Thornlie, and Butler are anticipated to continue to attract investors, especially those looking for long-term capital growth and tax benefits, which will support stable rental markets and ongoing investment.

Election‑Year Market Behaviour in Perth

1. Election Slowdown “Poll Paralysis”

• Before federal elections, Perth’s real estate market has historically seen a brief cooling off, a phenomenon known as “poll paralysis.”  
• This pattern recurred in early 2025, with listing volumes down by 12–15%, buyer viewings declining by 14%, and total transaction volumes declining by roughly 20%.  
• Both buyers and sellers usually pause when there is uncertainty about possible policy changes, delaying choices until after the election when clarity is established.
• Even though this pause momentarily halted the market’s momentum, astute buyers were able to take advantage of strategic opportunities, especially in high-value, less competitive places like Subiaco and Leederville.  
• Buyers looking to take advantage of less competition and more negotiating prices during this slower period showed interest, according to Bargoti Real Estate.

2. Post-Election Rebound

• In keeping with previous cycles, Perth’s real estate market quickly recovered after the election.  
• Listing volumes increased by almost 18% in just two months as a result of rekindled market certainty and confidence.  
• Strong underlying fundamentals, including low unemployment, sustained population growth, and the progress of large infrastructure projects like Metronet, further bolstered this recovery.
• Bargoti Real Estate expects a more dynamic market situation by the third quarter of 2025.  
• It’s a good time to offer properties and get competitive results because sellers profit from more buyer demand and better liquidity.

Forecasted Price Growth & Segment Differences

1. It is anticipated that Perth’s real estate market will continue to rise in 2025, albeit more slowly than the remarkable gains of 2024.  

2. According to aggregate projections, residential property values will increase by 5–10%, with apartments (units) expected to outperform houses in several important submarkets. Perth’s growth is expected to slow to 3–6%, according to REA Group’s PropTrack projection, after a nearly 18.7% spike in 2024.  

3. This opinion is supported by analysts from CoreLogic and REIWA, who point out that strict housing supply, robust population growth, and increasing affordability metrics—particularly with continuous rate decreases and first-home buyer incentives—will keep price growth positive even though it will slow.

4. Due to growing demand from investors and younger buyers, apartments—especially those in and around the central business district and inner-city precincts—are anticipated to experience a significant increase in value.  

5. In the meantime, affordability and demand pressure will keep entry-level detached homes in growth corridors like Baldivis, Byford, and Ellenbrook extremely competitive.

6. It is recommended that Bargoti Real Estate agents adjust their pricing tactics to account for competitive pricing and buyer urgency in outer suburban housing markets, while anticipating premium interest in inner-city apartments.

Strategic Advice from Bargoti Real Estate Perspective

1. For Sellers

• Put listings and improvements in the early stages of the post-election rebound.
• Using government help, position mid-priced homes to appeal to first-time homebuyers.

2. For Buyers

• Early in the homebuilding process, first-time homebuyers should take advantage of enhanced deposit plans.
• High-yield suburbs (four to five per cent), such as the Inner East, the coastal fringe, or the outer growth corridors, may be of interest to investors.

3. For Investors

• Stable tax environments support confidence.
• Take into account unit investments, which can provide a more affordable entry point and greater potential for relative capital growth in 2025.

Risks & Uncertainties to Monitor

1. Although Perth’s real estate market has a generally positive outlook for 2025, several risks and uncertainties might affect performance in the months to come.

2. Even while the current administration has kept the capital gains tax (CGT) and negative gearing settings the same, any future reforms that could impact investor confidence include lowering CGT reductions or capping investment property holdings. Third-party advocacy may continue to advance the discussion even though Labour does not now support such measures.

3. Buyer sentiment may be somewhat tempered if the Reserve Bank postpones additional rate reduction or slows the rate of monetary easing, particularly among buyers who are strained financially and investors who depend on lower borrowing costs to re-enter the market.

4. Delivering on Labour’s grandiose pledge of 100,000 additional homes is a significant risk. Material shortages, construction difficulties, or approval delays may constrain the supply of homes.  

5. Particularly in Perth’s highly competitive rental market, where vacancy rates are still low, this would maintain pressure on affordability and rental prices.

6. Bargoti Real Estate keeps a careful eye on these changing circumstances and counsels clients to be flexible and knowledgeable because market mood can change swiftly in reaction to macroeconomic or policy events.

Conclusion

A new period of policy clarity and alignment between the federal and state administrations, especially in Western Australia, has been brought about by the 2025 federal election. This translates to a housing plan for Perth that places a high priority on investor stability, supply expansion, and affordability. Throughout the year, essential measures, including extended first-home buyer programs, stable tax environments, and continuous interest rate reductions, will likely influence consumer behaviour and market patterns.

Although there was a predicted slowdown in early 2025 due to the election, things are already starting to change. Perth is well-positioned for sustained growth in the second half of the year thanks to solid underlying factors like population growth, infrastructure expansion (like Metronet), and job momentum.

Leading the way in this shift is Bargoti Real Estate. Whether it’s locating suburban growth spots, modifying pricing tactics, or taking advantage of legislative incentives, Bargoti is well-positioned to assist clients in navigating this changing terrain by utilising its extensive market knowledge and local expertise.

Ultimately, 2025 is a turning moment that has the potential to completely reshape Perth’s real estate future, not just a year of market volatility. Buyers, sellers, and investors can take advantage of new chances in a market that is about to undergo a long-term shift if they receive the proper advice and act promptly.

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