First Home Buyers in WA – Grants, Challenges, and 2025 Opportunities

Breaking into the property market has never been easy, but for first home buyers in Western Australia, 2025 presents both hurdles and opportunities. Perth continues to hold its position as one of Australia’s most affordable capital cities, yet affordability pressures, rising costs, and strong demand mean buyers need to be savvy to get ahead.

Government Support Still Strong

The WA First Home Owner Grant (FHOG) remains a cornerstone of support, providing $10,000 towards new builds. On top of this, generous stamp duty concessions for properties under certain thresholds can save buyers tens of thousands. For example, a first home buyer purchasing an established property under $500,000 pays no stamp duty at all—a significant boost in a tight financial environment.

Additionally, federal schemes such as the First Home Guarantee, which allows eligible buyers to purchase with as little as 5% deposit without paying Lenders Mortgage Insurance (LMI), are making ownership more accessible.

The 2025 Challenges

While incentives are attractive, the path isn’t without obstacles. Rising construction costs and ongoing labour shortages mean new builds are often delayed by 12–24 months. Many first home buyers who signed building contracts in 2022 or 2023 are still waiting for completion, leaving some wary of going down the construction route.

The cost of living and higher interest rates also continue to stretch budgets. Even though Perth’s median house price sits well below Sydney and Melbourne, rapid growth has seen prices rise more than 10% in the past year, putting pressure on entry-level buyers.

Opportunities Emerging in the Market

Despite the hurdles, opportunities abound—particularly for those willing to look beyond Perth’s inner suburbs. Affordable growth corridors like Byford, Ellenbrook, and Alkimos are attracting first-time buyers thanks to new infrastructure projects, such as the Metronet rail expansions, schools, and shopping precincts.

For buyers wanting to stay closer to the city, smaller units and townhouses in areas like Belmont, Cannington, and Balcatta remain accessible, offering the dual benefits of affordability and proximity.

The Key to Getting Ahead

For first home buyers in 2025, the strategy is clear:

• Be flexible about location and property type.

• Maximise grants and concessions to stretch budgets further.

• Seek professional advice to navigate lending changes and uncover emerging suburbs with strong growth potential.

While challenges exist, WA’s combination of government support, infrastructure development, and relative affordability makes 2025 a promising year for those ready to take the leap into home ownership.