Perth Property Election Impact: Market Changes for 2025
Perth Property Election Impact: Historical Evidence
The Perth property election impact is becoming a major concern for homeowners and investors as Australia approaches its 2025 federal vote. Historical patterns show clear evidence of how election periods influence real estate markets across Western Australia’s capital. This guide examines what Subiaco and greater Perth property stakeholders can expect based on past election cycles and upcoming policy proposals.
How Previous Elections Affected Perth’s Real Estate Values
The Perth Property Market Election Paralysis Effect
Election periods consistently trigger what industry experts call “poll paralysis” in Perth’s property market. During the 2019 and 2022 federal elections, Perth experienced significant declines in property listings—approximately 15% and 12% respectively—in the months leading to polling day.
“Property owners typically adopt a wait-and-see approach during election campaigns,” explains Marina Henderson, President of the Real Estate Institute of Western Australia (REIWA). “This reluctance to list properties creates temporary supply constraints that can influence market dynamics.”
Perth Election Impact on Buyer Behavior
Buyer behavior demonstrates similar caution during election periods. Transaction volumes in Perth declined by nearly 20% during the three months preceding the 2022 federal election. This hesitation stems from uncertainty about potential policy changes affecting property ownership, investment tax benefits, and financing regulations.
CoreLogic data revealed that property viewings and auction attendance rates in Perth dropped by approximately 14% during the 2022 election campaign compared to the preceding quarter, illustrating how political uncertainty directly impacts market activity.
Perth Property’s Sensitivity to Policy Proposals
Perth’s property market has historically shown acute sensitivity to housing-related policies:
- When negative gearing reforms were proposed during the 2019 election, investor activity in Perth declined by 7% despite the city offering some of Australia’s highest rental yields
- During rental legislation debates in 2022, landlord sentiment indexes showed increased pessimism
- The 2013 election, which brought significant changes to foreign investment rules, saw a 22% reduction in international buyer inquiries for Perth properties
The Post-Election Perth Property Rebound
Regardless of electoral outcomes, Perth’s property market typically rebounds following elections as uncertainty dissipates. After the 2022 election, listing volumes increased by 18% within just two months of results being announced.
Perth’s strong fundamentals—including 3.2% population growth (Australia’s highest), low 3.4% unemployment, and significant infrastructure investment—have historically supported swift post-election recoveries, often outperforming eastern states markets.
2025 Election Policies That Will Shape Perth’s Property Values
Foreign Investment Restrictions in Established Perth Homes
The Albanese Government’s two-year ban on foreign investment in existing residential properties, scheduled to begin in April 2025, will likely feature prominently in election debates. This policy aims to increase housing supply for domestic buyers but could potentially reduce overall market demand.
“While Perth has a lower proportion of foreign investors compared to Sydney or Melbourne, the ban could still affect approximately 5-7% of transactions in premium suburbs like Applecross and South Perth,” notes Dr. Samuel Wong, property economist at Curtin University.
For Subiaco property owners, the policy’s exemption for new developments could redirect foreign capital toward construction, potentially stimulating new housing supply in established areas with redevelopment potential.
Housing Affordability Solutions for Perth Buyers
With housing affordability ranking among voters’ top concerns, both major parties are expected to announce significant supply-side initiatives. These may include development incentives, streamlined approval processes, and expanded first-home buyer assistance schemes.
Perth’s relatively affordable housing (median price of $585,000 compared to Sydney’s $1.1 million) positions it favorably within national affordability debates, but local buyers still face challenges with deposit requirements and lending criteria.
Proposals to release more government land for development could particularly impact Perth’s growth corridors, creating ripple effects across established inner suburbs like Subiaco as buyer preferences shift.
Investment Property Tax Changes Under Consideration
Tax policies affecting property investors will feature prominently in election campaigns. Debates around negative gearing limitations and capital gains tax concessions could significantly impact investor sentiment in Perth, where approximately 27% of residential properties are investor-owned.
“Perth’s relatively high rental yields of 4.8% mean investors here are less dependent on negative gearing than those in lower-yielding eastern states markets,” explains Catherine Williams, tax partner at Deloitte Perth. “However, any changes to capital gains discounts could affect long-term investment strategies across all markets.”
Analysis of previous tax reform proposals suggests that Perth’s more yield-focused investor market might prove more resilient than Sydney or Melbourne if negative gearing limitations are introduced—a potential advantage for Subiaco investment property owners.
Perth Rental Market Controls in Focus
With Perth experiencing rental vacancy rates below 1% and annual rent increases exceeding 10% in 2024, rent control measures could emerge as election issues. Proposals ranging from rent increase caps to eviction protections may appeal to the approximately 31% of Perth residents who rent their homes.
“Rent controls would provide short-term relief for tenants but potentially reduce rental supply long-term as investors seek alternative markets,” warns REIWA’s Henderson. “Perth’s rental crisis stems from supply shortages that require construction solutions rather than regulatory interventions.”
What Perth Property Owners Should Expect in 2025
Pre-Election Market Slowdown Across Perth
The 2025 election will likely trigger a period of uncertainty in Perth’s property market, with transaction volumes potentially declining by 10-15% during the campaign period. While prices typically stabilize rather than fall during these periods, growth may moderate temporarily.
Buyer demographics may shift, with first-time purchasers potentially delaying decisions while sophisticated investors watch for strategic opportunities created by reduced competition—particularly in high-value areas like Subiaco.
Perth’s Long-Term Property Market Strength
Despite short-term election effects, Perth’s property market fundamentals remain robust. The city’s continued population growth, infrastructure investments including the Metronet expansion, and economic diversification beyond mining all support long-term property value growth across metropolitan areas.
Economic forecasts from the Chamber of Commerce and Industry Western Australia project that Perth property prices could increase by 8-10% in 2025 despite election-related disruptions, outperforming most Australian capital cities.
Strategic Planning for Perth Property Owners During Election Year
For Perth property stakeholders, the 2025 election period offers both challenges and opportunities. Strategic investors may find advantages in counter-cyclical purchasing during market hesitation, particularly in high-demand suburbs like Subiaco where temporary uncertainty might create value buying windows.
For sellers, timing considerations become paramount, with post-election periods typically offering more favorable conditions and expanded buyer pools. Property owners considering renovations or improvements may benefit from scheduling these during the pre-election market lull to maximize post-election value presentation.
While temporary disruptions are inevitable, Perth’s strong economic fundamentals and relative affordability position its property market to weather election-related uncertainty better than many Australian cities. As with previous electoral cycles, patience and long-term perspective remain valuable assets for property investors navigating the political crosscurrents of 2025.