The 2025 Correction: Affordability Bites and Listings Evaporate

Fast forward to July 2025, and the narrative has shifted dramatically. While the desirability of Fremantle, White Gum Valley, and Attadale remains undisputed, their elevated price points have begun to price out a significant segment of the buying public. This affordability crunch is compounded by a severe shortage of available properties.

The market tightness is multi-faceted. On one hand, owner-occupiers, particularly those looking to downsize, are hesitant to list their properties because they face the daunting prospect of finding a suitable replacement home in such a competitive and undersupplied market. This creates a vicious cycle where a lack of available stock prevents potential sellers from becoming active buyers, further restricting supply.

The table for 2025 YTD July paints a clear picture of this slowdown:

    Source : Pricefinder/Domain.com.au

Average sales per month have plummeted across all three, indicating severely declining listings. More strikingly, data-based growth has either significantly moderated (Fremantle at 6%), stalled completely (White Gum Valley at 0%), or even reversed (Attadale at -7%). This is a stark contrast to their 2024 performance and signals a market searching for its next direction.

The Rise of the "Overflow" Suburbs: Value and Lifestyle Collide

This market dynamic has directly fuelled the rise of the "overflow" suburbs – those neighbouring areas that offer a very similar lifestyle and amenity but, until recently, at a more accessible price point. Buyers, particularly first-home buyers frustrated by repeated misses in their "goal areas" and second-home buyers seeking to upgrade to larger properties without a prohibitive cost difference, have keenly identified this value proposition.

Consider Palmyra, nestled adjacent to Fremantle and White Gum Valley, and attracting a very similar demographic. In 2024, its median price of $1.04M was nearly 30% cheaper than its blue-chip neighbours, despite offering excellent access to South Fremantle beaches and the Swan River. While slightly further from the immediate waterfront, the value proposition easily offsets any minor inconvenience. Furthermore, the newly opened “Good Grocer” in East Fremantle, along with Woolworths already present in Palmyra Junction, ensures that daily conveniences are comparable, if not superior, to some parts of the Fremantle and WGV.

The 2025 YTD July figures for Palmyra vividly demonstrate this shift:

    Source : Pricefinder/Domain.com.au

Palmyra has maintained strong sales volumes and, critically, achieved a robust 11% growth year-to-date, significantly outstripping both Fremantle (6%) and White Gum Valley (0%). This confirms that buyers, priced out of their initial targets, are actively investing in Palmyra, driving its values upwards.

Pallmyra specialist Paul Parkinson from Mint Real Estate is also seeing this play-out in real time. When asked about what he’s seeing this year in the data and his Mint Open Homes, Paul notes:

“Palmyra has really come into its own over the 2024/25 period, with the suburb experiencing a noticeable surge in both demand and price growth. As neighbouring suburbs hit affordability ceilings for many buyers, Palmyra has emerged as a standout alternative, offering lifestyle, location and character without the same hefty price tag." he said.

This shift has pushed the median house price up by around 13% to just over $1.08 million, while units and villas have jumped even higher, up more than 21%, with the median now sitting around $657,500*. In fact, we’re seeing price records being broken across the suburb over the past few months, with buyers paying premiums for quality homes.

It’s worth noting that past sales may no longer reflect current market value, as the pace of growth continues to outstrip historical trends."

Paul also notes the the diverse buyer pool of home buyers:

"We’re seeing everyone from young professionals wanting a vibrant, well-connected area, to young families who love the parks and schools, and downsizers who appreciate the mix of character homes and low-maintenance options." he said.

Renovated and character-style homes are the most in-demand, often attracting 50+ groups to the first open and ending with multiple offers on the table. There’s also strong interest in the villa market, especially from first-home buyers and investors looking to secure a foothold in a high-growth suburb.”

(source: realestate.com.au suburb insights, July 2025)

• Overflow
• Bicton
  Melville

• Avg Sales Per Month (2025
• 6.0 (Consistent vs YA)
  6.8 (Consistent vs YA)
  

• Median (2025)
• $1.67M
  $1.47M

Growth YoY (2025)
15%
21%