I'm going for Mandurah, south of Perth. Planning to buy in 1.5 to 2.5 years, depending how quickly I get full-time work after graduating.
Lived there before - working class area but not too many bogans, Halls Head beach is 30 mins' bike ride or less (foreshore much closer), and excellent quality. Reasonable range of grocers in the main shops, some cafes etc on the foreshore too, and library was excellent when I lived there. Train line gives access to Perth and if I needed to commute, it would take only 10-15 minutes longer than my current one in Melbourne (zzz, trams) - with the plus that being at the end of the line, I can almost guarantee a seat!
Warnbro or Rockingham area (still south, a bit closer to Perth) might be good too. Rockingham in particular has some rough parts, but has been slowly improving over the last decade or so afaik. Avoid Kwinana and Baldivis areas.
Northern fringe of Perth is all either too expensive or too isolated. Don't know about the eastern suburbs other than that crime tends to be worse there.
Rural WA? Well... I hear Broome is attractive, but too tropical for me, and I don't know too much about affordability or social issues there. Further in the South West you have beautiful temperate rainforest, but the population is extremely sparse, with the accompanying lack of social amenities. I'm too soft for such a rugged lifestyle, but having travelled down there, by and large the people are good-hearted. As for the rest, I reckon you'd know already if it was your thing or not.
I have also considered Tasmania, which is pleasant, but too far from Perth-based family, two plane hops. Colder than the rest, and (much) wetter if you go west into the mountains, if you like that kind of thing. Even Hobart is lightly populated relative to other capitals, so property there is comparatively cheap for 'capital city' living. I ruled it out because I am not yet stashed up so the relatively high unemployment and small population make it undesirable for me while I'm in the earning phase. If I had the cash already? Quite possibly.
Also rural Victoria, has nice areas up near the mountains, Bright, Harrietville, etc, but housing is still expensive unless you buy a lot and build your own - no idea how that would go. Or the south-west coast along the Great Ocean Road and its cousin south-east of Melbourne along the coast. Lots of small tourist towns out there. Not sure on house prices, but suspect it's expensive (is that a theme?).
Yes it is. Given how stupendously expensive Australian housing is in most locations, I believe early retirement here is somewhat less feasible than in the USA. I actually considered moving to the US once I had built up a stash here, but am too uncomfortable with losing universal healthcare, having to endure even more toxic politics than we recently witnessed, etc.
You might also consider asking the same question on the whirlpool.net.au forums, see what the users there think. I also hope some posters with experience of SA, NSW, QLD or NT chime in to satisfy my curiosity. =)