Each month our Property Acquisition, Advisory and Research team wrap up the latest property data. Department Manager Robin Ram also shares his insights on what the team are seeing on the ground.
Perth’s market has shifted over the past few months. After a strong run, values are easing, buyers have more choice, and sellers are adjusting their expectations. For buyers with a long-term view, that is a healthier position than we have seen in some time.
Some perspective first
It helps to look at the bigger picture. At the end of 2022, Cotality put Perth’s median dwelling value at $560,902. By September 2026 it was $975,022. That is an increase of around $414,000, or 74%, in under four years.
Against that, the recent correction is modest. Cotality’s daily index shows Perth values down 5.7% over the past quarter (as at 2 November). Values are still 3.7% higher than a year ago. That is the strongest annual result of the five major capitals, where values are down 5.1% on average.
What the numbers are showing
Supply has changed the most. A year ago, Cotality reported Perth listings had fallen to record lows. REIWA’s latest weekly data shows 9,217 properties now listed for sale. That is up 15% in four weeks and more than three times the 2,870 listed in the same week last year. Sales lifted to 713 for the week, from 508 four weeks ago. That is still 20% below the same week last year, so stock is building faster than it is selling.
Even so, listings remain below the level of around 13,500 that we would consider a balanced market. Perth has moved from an extreme shortage to a more normally supplied market. It is not oversupplied.
The rental market is easing slightly. There were 2,179 rentals available, up 10% in four weeks and now just above the same week last year. Vacancy was 1.7% in September, still well below the 2.5% to 3.5% balanced range. Demand for well-presented rentals remains solid. Established homes closer to the CBD are becoming more scarce in the rental market and are seeing much lower vacancy rates than the 1.7% figure for Greater Perth.
What we are seeing on the ground
Our buyers’ agents are seeing more flexibility on price and terms. Buyers can negotiate rather than accept every condition just to compete.
We are also seeing investors commit to purchases that fit their long-term financial plan. Rather than waiting on the sidelines, many see the softer market as a chance to buy a better property that fits their 20 to 30-year plan. That might be a better location, a larger block or a home with stronger long-term appeal.
Conditions are not the same everywhere. Well-presented homes closer to the CBD, particularly between $2 million and $3 million, are still attracting good interest from upgraders. Buyers in that segment shouldn’t expect every seller to make big concessions.
What this means for buyers and investors
Property is a long-term investment, and the past four years show why. Today’s market gives buyers more room to negotiate and make considered decisions. That doesn’t mean every property is a bargain, or that further short-term falls can be ruled out. Check comparable sales, do thorough due diligence, and make sure the purchase fits your own plan. Be selective and be ready to act when the right property comes along.
