As we move toward the end of 2025, it’s clear the Australian property market has shifted gears — and here in the South West, those changes have been felt in very specific ways. Lifestyle demand, limited housing supply and renewed buyer confidence have all played a role in shaping local market conditions throughout the year.
At JMW Real Estate Dunsborough, we believe understanding how national trends translate into local outcomes is key to making confident property decisions. Here’s a look at what defined the South West property market in 2025 — and what we expect heading into 2026.
A More Confident Market, Grounded in Lifestyle Appeal
After a cautious start to the year, buyer confidence steadily improved throughout 2025. While affordability remained a consideration, many buyers adjusted expectations and re-entered the market with a longer-term view.
In the South West, lifestyle continued to be a major driver of demand. Coastal living, proximity to nature, strong community feel and flexible working arrangements kept regions like Dunsborough, Busselton and surrounding areas firmly on buyers’ radars. Unlike some capital city markets, demand here has remained largely owner-occupier focused, supporting consistent price levels rather than volatile swings.
Stock Levels Remain Tight
One of the defining features of the South West market in 2025 was the ongoing shortage of quality listings. Many homeowners chose to hold rather than sell, contributing to low stock levels across much of the year.
This imbalance between supply and demand helped underpin property values and created competitive conditions for well-presented homes. Properties that were priced correctly and marketed effectively continued to attract strong interest, often selling within relatively short timeframes.
Buyer Behaviour: More Considered, Still Competitive
Buyers in 2025 were generally more informed and deliberate. While urgency was not at the extremes seen in previous boom cycles, competition remained strong for homes that ticked the right boxes — particularly family homes, coastal properties and low-maintenance residences close to town amenities.
Open homes throughout the year reflected a mix of local buyers, Perth-based lifestyle movers and long-term investors seeking quality assets in tightly held locations. This diversity of buyer profiles added depth to the market and helped maintain steady activity levels.
Investors Return — But With a Long-Term View
Investor interest increased during 2025, particularly in Western Australia, as rental demand remained strong and vacancy rates stayed low. In the South West, this translated into renewed competition for established homes and well-located units, especially those appealing to long-term tenants.
Unlike previous cycles, many investors showed a more measured approach — prioritising location, rental appeal and long-term growth rather than short-term gains.
What to Expect in 2026
Looking ahead, the South West property market is expected to remain resilient through 2026. While rapid price acceleration is unlikely, the fundamentals supporting the region remain strong:
- Ongoing lifestyle demand
- Limited new housing supply
- Strong owner-occupier presence
- Continued rental pressure supporting investor interest
Market conditions are likely to favour sellers with well-presented, realistically priced homes, while buyers will benefit from taking a strategic, informed approach backed by local expertise.
What This Means for Local Sellers and Buyers
For sellers, 2026 presents an opportunity to capitalise on steady demand and limited competition — particularly if your property aligns with what buyers are actively seeking. Presentation, pricing and professional marketing will remain critical to achieving strong results.
For buyers, understanding micro-market trends, acting decisively when the right property becomes available and working with local agents who know the area inside and out will be key to success.
If you’re considering buying or selling in Dunsborough or the wider South West, the team at JMW Real Estate Dunsborough is here to provide tailored, local advice to help you move forward with confidence.
To stay up to date with the latest listings and market insights:
JMW Real Estate
info@jmwrealestate.com.au
Phone: 08 9756 8800
@jmwrealestate.com.au
