The ‘new normal' leaving Aussie first homebuyers behind

News.com.au

12-07-2025

In a modest suburb an hour southeast of Western Australia's capital city, Perth, a tiny three-bedroom home on a 187 square metre block is expected to sell for nearly $700,000.
Just three years ago, the home in Piara Waters would have sold for around $450,000.
This equal parts dramatic and depressing increase exemplifies what real estate agent Aman Singh describes as the 'new normal' in Perth's housing market.
'You have seen the demand. This property is the only one available within this price range. So people are jumping on it,' Mr Singh told Brooko Moves.
'What's applying in Piara Waters at the moment is demand and supply.'
It's a staggering statement when you consider the national average block size for a three-bedroom, two-bathroom home is more than double at 450 square metres.
Mr Singh's stark advice is further proof of a market that isn't just out of control, but out of reach for most first homebuyers.
'Put your best offer forward, there may not be a second opportunity,' he insisted.
He added that many properties were receiving multiple offers and often exceeded the asking price by $30,000 to $40,000.
Of course this surge in property prices is not isolated to Piara Waters, a fairly new concrete city estate development where houses are mere centimetres apart and green spaces are scant.
Across Perth, the median house price rose to $855,395 as of June 2025, which was a 7.8 per cent increase from June 2024. Even more terrifyingly, analysts predicted growth of up to 10 per cent more by the end of the year.
It's a challenging time to be a first homebuyer, to say the least.
Mr Singh said about 70 to 75 per cent of interested buyers were first-timers, and many were beginning to display their frustration.
'First homebuyers are more emotional buyers and quite often disgruntled, missing out on properties one after another,' he said.
'By the time they reach the sixth property and make an offer, they expect it to be accepted.'
Still, Mr Singh urged first homebuyers to get into the market ASAP.
'That's the only way to get out of the rent trap because you are ultimately paying for somebody else's mortgage.'
He remained insistent that right now was the best time to buy, encouraging buyers to ignore the possibility of a slump in about two years.
'For everyone, especially first-time buyers, get into the market as soon as you can,' he said.
'I don't believe the market's going to come down anytime soon, at least not for the next two years.'
The situation in Perth reflects a broader national trend.
In the March quarter of 2025, the average price of a residential dwelling in Australia surpassed $1 million for the first time in another punch to the gut for first homebuyers across the country.
Prospective buyers have no choice but to attempt to craftily navigate a property landscape marked by rapid price increases, intense competition and limited opportunities.
The Great Australian Dream for a growing number of young Aussies is starting to look more like a very expensive joke.