In today’s dynamic Western Australian property market, the choice between a house and land package vs established homes in Perth represents a significant decision for potential homeowners. With the housing market continuing to evolve in 2025, understanding the key differences between new builds or existing houses in WA has never been more important.
Whilst both options present unique advantages and considerations that deserve careful attention, we’ve put together this comprehensive guide to outline the key factors to consider when determining your home buying options in Perth.
The Perth Housing Market in 2025
Understanding the current market conditions is essential to your planning when weighing up property investment choices in WA. The local property market continues to offer diverse home buying options in Perth, from established suburban homes to exciting new developments in growing communities.
The Real Estate Institute of Western Australia (REIWA) have tipped 2025 to be a year of notable growth for housing values, with property demand expected to remain high given current migration levels adding further pressure to WA’s housing shortage. Whilst Perth’s median house price increase by 24.2% in 2024, and the Perth rental market remained highly competitive with low vacancy rates, we expect further grow in the coming year.
In a recent article, REIWA forecasted the year ahead with the following headlines summing up what homebuyers can expect to experience within our highly dynamic, in-demand Perth property market:
- Despite last year’s growth rates, Perth property prices are set to continue upwards, with REIWA forecasting up to 10% growth throughout 2025.
- Affordability will become a greater focus for Perth buyers, with numerous cash rate and interest rate cuts expected to eventuate during the year.
With housing affordability currently a hot topic, more buyers are opting for house and land packages for a variety of reasons, particularly first-time buyers and growing families. While established homes offer immediate occupancy and character, new builds are attracting buyers with modern designs and energy efficiency features.
Understanding the true cost difference between house and land packages vs established homes in Perth requires looking beyond the initial purchase price to consider long-term financial implications.
New Build or Existing House in WA – A Cost Comparison
When comparing the costs associated between a new build or existing house in WA, several key financial factors demand careful consideration. At a high level, the initial costs for established homes can seem more favourable up front, however, when considering your long-term financial roadmap, new builds typically benefit from various government incentives that support buyers.
As there are many factors to factor into your decision, we’ve outlined some further benefits and considerations below to help determine your best fit.
Initial Costs and Considerations:
- House and land packages often require lower upfront deposits
- First home buyer grants typically favour new constructions
- Stamp duty savings available on off-the-plan purchases
- Fixed-price contracts protect against unexpected costs
- Potential for staged payments during construction
- Custom financing options specifically designed for new builds
Long-term Financial Implications:
- Established homes may need immediate renovations or repairs
- New builds come with comprehensive warranty protection
- Lower maintenance costs in the first 5-10 years
- Enhanced energy efficiency leading to reduced utility costs
- Potential tax benefits for new investment properties
- Modern features that can command higher rental returns
Customisation Options in House & Land Packages
One of the most compelling advantages when choosing between a new build or an existing house in WA is the unprecedented level of customisation available with new constructions.
Personalisation allows buyers to create spaces and aesthetics that perfectly match their lifestyle needs and preferences. Having the freedom of being able to choose a preferred floorplan and property orientation, whilst aligning fixtures and fittings to personal taste, can become key reasons to build a new home. At the end of the day, we all want our perfect home, so having a high level of input into the house design and feel becomes an important distinction between building with a house and land package vs an established home in Perth.
In 2025, it’s becoming more important than ever to accommodate and adapt designs to the contemporary requirements of modern-day families to ensure living spaces are flexible and can adapt to changing needs. Whether your property needs to accommodate a work-from-home station, multi-generational living arrangements or requires smart home integration for efficiency, new house and land package builds provide unparalleled flexibility.
Homebuyers looking to custom build their dream home from the ground up will often go with a fresh build due to the freedom of choosing various property elements such as:
- Fixtures and fittings
- Kitchen and bathroom designs
- Integrated indoor-outdoor living spaces
- Energy-efficient appliance packages
- Smart home technology infrastructure
- Accessibility and/or lifestyle preferences
Whilst the above list is not exhaustive, it provides some perspective on how involved you can be when designing a home from scratch.
Energy Efficiency and Modern Building Standards
Modern house and land packages in Perth are designed and constructed to meet stringent energy efficiency standards, offering significant advantages over older, established properties. Thanks to modern construction technologies and design principles, new homes are often built with sustainability and energy efficiency in mind, leading to parallel benefits like reduced living costs – a welcome benefit given the ongoing housing affordability challenges in Perth.
Advanced Energy Features:
- Superior insulation materials and techniques
- Double-glazed window options
- Energy-efficient appliances and fixtures
- Solar panel integration possibilities
- Smart home technology capabilities
- Water-efficient fixtures and rainwater harvesting systems
The above features not only reduce environmental impact but also deliver substantial savings on utility bills compared to established properties.
Further to this, new builds also leverage the latest building codes, which are geared towards prioritising safety, durability, and sustainability, providing peace of mind for homeowners.
Maintenance Costs: New vs. Established Homes
When you’re weighing up an investment into either a new build or existing house in WA, maintenance is a huge factor that often gets overlooked in the excitement of house hunting. While that character home might steal your heart with its ornate ceilings and established garden, it’s worth knowing what you’re getting into when it comes to ongoing repairs and maintenance.
We’ve put together a comparison chart below to show you exactly what to expect with both options, from warranty coverage to ongoing costs that can add up over time.
| Aspect | New Builds | Established Homes |
|---|---|---|
| Initial Maintenance | Minimal to none | Often requires immediate attention |
| Warranty Coverage | Full Builder’s Warranty (6 years) | Limited/None |
| Energy Efficiency | High – meets current standards | Variable – often needs upgrading |
| Repair Frequency | Low in first 5-10 years | More frequent and potentially costly |
| Insurance Costs | Often Lower | Generally Higher |
| Building Standards | Meets current codes | May need updating to current standards |
| Ongoing Costs | Predictable | Can be unpredictable |
Resale Value Considerations
When it comes to evaluating your property investment choices in WA, a key consideration should always be around the future resale value. Both house and land packages vs established homes in Perth offer different advantages from an investment perspective, and understanding these can help inform your choice.
Investment Benefits of New Builds:
- Appeal to buyers seeking modern features and low maintenance
- Higher energy efficiency ratings attract environmentally conscious buyers
- Often located in growing areas with planned infrastructure
- Contemporary designs that meet current market preferences
- Builder’s warranty can be transferred to new owners
- Depreciation benefits for investors
Established Homes Investment Advantages:
- Proven capital growth history in established areas
- Established neighbourhood amenities and services
- Character features that may appeal to specific buyers
- Potential for value-adding renovations
- Larger land sizes in prime locations
- Immediate rental income potential
Whether choosing a new build or existing houses in WA, your decision should align with both your immediate needs and long-term investment strategy.
Need Further Support? We’d Love To Help!
When it comes to shortlisting your home buying options in Perth, it’s important to seek help from an experienced, trusted, local builder. With 120 years of experience delivering house and land packages, the team at Plunkett Homes have the expertise to design, build and deliver a personalised house that can become your forever home, or your very first purchase.
For expert guidance on property investment choices in WA, or to explore our range of house and land packages, we invite you to contact our experienced team today.
