Western Suburbs Face Falling House Prices: Seven Areas to Watch

Western Suburbs Lead Perth Property Surge, But Not All Markets Soar

Perth’s western suburbs have emerged as the undeniable frontrunners in property price growth since 2020, with one suburb, in particular, experiencing a staggering 97% increase in values. This surge has propelled the median price to an extraordinary $2.29 million. Over the past year alone, this leading suburb saw values climb a remarkable 25%, a testament to its burgeoning desirability. The progress of the upscale Montario Quarter estate is cited as a significant contributor to this remarkable performance.Following closely behind, City Beach has also witnessed substantial recognition, with prices climbing 91% over the last five years to reach a median of $3.06 million. Industry experts attribute a portion of this growth to what they term a “catch-up” effect, suggesting that the area was previously undervalued by approximately 20% before the COVID-19 pandemic.

While the broader trend in these exclusive western markets has been overwhelmingly positive, with double-digit gains over the past five years, it’s critically important to note that not all areas have kept pace with the impressive boom seen across Greater Perth, which has seen a 64% jump as COVID.

Digging deeper into the data, some pockets within the coveted western triangle have experienced more modest growth. crawley, as an example, has seen values inch up by a mere 22% over the past five years, reaching a median of $1.4 million. Similarly, Nedlands has shown relatively slower growth, up 37% since 2020 to a median of $2.36 million.

Evergreen Insight: Property markets,even within highly desirable enclaves,are rarely monolithic. Factors such as local infrastructure developments, specific estate releases, and underlying market sentiment can create distinct performance patterns across neighboring suburbs.Understanding these micro-market dynamics is crucial for both buyers and sellers aiming to navigate the property landscape effectively. As the market continues to evolve, sustained growth often hinges on a combination of intrinsic appeal, strategic development, and broader economic conditions that influence buyer confidence and affordability.

Seven Western Suburbs Witness Price Declines:

Despite the overall upward trend, seven western suburbs have bucked the surge, experiencing price drops over the past five years:

Daglish: -14.8%
Claremont: -13%
Cottesloe: -10%
Peppermint Grove: -6.6%
Dalkeith: -6%
North Fremantle: -3.2%
* Jolimont: -2.5%

Evergreen Insight: Identifying suburbs that have experienced price corrections can offer unique opportunities for astute investors. These downward movements may signal a temporary market adjustment, a period of recalibration after prior rapid growth, or could be influenced by localized factors. For buyers, understanding the reasons behind these declines can provide a clearer picture of potential value and future growth prospects, making them areas worth further investigation.

What financing options are available for first-home buyers in Blacktown, given the 8.5% median house price decline?

Understanding the Current Market Shift in Western suburbs

The australian property market, once a seemingly unstoppable force, is experiencing a correction. While some regions remain buoyant, several western suburbs are now facing falling house prices. This isn’t necessarily a cause for panic, but a crucial time for buyers and sellers to understand the nuances of the local market. Factors contributing to this shift include rising interest rates, increased housing supply in certain areas, and a cooling of post-pandemic demand. Understanding these dynamics is key to navigating the current real estate landscape. We’ll focus on seven key areas experiencing price declines and what potential buyers and sellers should consider.This analysis covers suburbs in major metropolitan areas, focusing on trends observed in the first half of 2025.

Area 1: Blacktown, NSW – A Important Correction

Blacktown, traditionally a popular choice for first-home buyers and families due to its affordability, is seeing a more pronounced downturn.

Median House Price Decline: Approximately 8.5% year-to-date (July 12, 2025).

Key Drivers: Increased apartment construction adding to supply, coupled with higher mortgage repayments impacting buyer affordability.

Buyer Prospect: Potential for securing a property at a more reasonable price, particularly for those with pre-approved finance.

Seller Strategy: Realistic price expectations are crucial. Consider offering incentives like included appliances or landscaping to attract buyers.

Area 2: melton, VIC – Impact of Infrastructure Delays

Melton, a rapidly growing suburb in outer Melbourne, is experiencing price drops linked to delays in planned infrastructure projects.

Median House Price Decline: Around 6.2% year-to-date.

Key Drivers: Delays in the Outer Suburban Arterial Road project and concerns about public transport capacity are dampening buyer enthusiasm.

Buyer opportunity: Negotiation power is increasing. Look for properties with good access to existing transport links.

Seller Strategy: Highlight proximity to schools, shops, and existing amenities. Clarity about infrastructure timelines is vital.

Area 3: Ipswich, QLD – Oversupply Concerns

Ipswich, once touted as a growth hotspot, is now facing headwinds due to an oversupply of new housing.

Median House Price Decline: Approximately 5.8% year-to-date.

Key Drivers: A surge in new land releases and house-and-land packages has created a competitive market, driving down prices.

Buyer Opportunity: Abundant choice and potential for securing a new build with significant discounts.

seller Strategy: Differentiate your property through renovations or unique features. Consider offering a rent-back arrangement to bridge the gap between sale and settlement.

area 4: Campbelltown, SA – Interest Rate sensitivity

Campbelltown, a suburb in Adelaide, is particularly sensitive to interest rate hikes due to a higher proportion of mortgage holders.

Median House Price decline: Roughly 4.9% year-to-date.

Key drivers: Rising interest rates are squeezing household budgets, reducing borrowing capacity and impacting demand.

Buyer Opportunity: Explore fixed-rate mortgage options to mitigate the impact of further rate increases.

Seller Strategy: Consider staging your home to maximize its appeal and present it in the best possible light.

Area 5: Mandurah, WA – Holiday Home Market Cooling

Mandurah, a popular holiday destination south of Perth, is seeing a slowdown in its traditionally strong property market.

Median House Price Decline: Approximately 3.7% year-to-date.

Key Drivers: Reduced interstate and international travel impacting demand for holiday homes. Increased cost of living also affecting discretionary spending.

Buyer Opportunity: Potential to acquire a coastal property at a more affordable price.

Seller Strategy: Target local buyers and emphasize the lifestyle benefits of the area.

Area 6: Toowoomba, QLD – Regional Market Adjustment

Toowoomba, a major regional centre, is experiencing a correction after a period of strong growth during the pandemic.

Median House Price Decline: Around 4.1% year-to-date.

Key Drivers: Return to city living and a normalization of regional property demand.

Buyer Opportunity: explore opportunities in the acreage and rural lifestyle market.

Seller Strategy: Highlight the benefits of regional living, such as affordability and a slower pace of life.

Area 7: Penrith, NSW – High Density Impact

Penrith, benefiting from infrastructure upgrades