Urgent Update for Perth Property Market
By: Niro Thambipillay
August 14, 2026
Perth property values have slowed sharply after a run of more than 20% annual growth. In July, values rose just 0.1%, while the quarter recorded a 0.3% fall. On the surface, that can look like the end of the boom. But underneath the headline, the market is not showing the ingredients of a crash. It is showing the signs of a market taking a breath. In this article, I break down what has changed, the five forces still supporting Perth, and what the shift means for owners and buyers.
TL;DR
The frantic phase of the Perth property boom is over, but the data does not point to a crash. Homes are taking longer to sell, buyers have more choice, and affordability is limiting how quickly prices can rise. At the same time, active listings remain roughly half the level associated with a balanced Perth market, new construction is expensive and constrained, population growth remains strong, and unemployment is low. Perth is moving from broad-based frenzy into a more selective, fundamentals-driven market.
Key Takeaways
- Growth has flattened: Perth values rose 0.1% in July and fell 0.3% across the quarter cited in the analysis.
- Selling times are normalising: Houses moved from an average of nine days in February to 14 days, while units shifted from eight days to 13.
- Listings are still tight: Active listings reached 5,137, compared with more than 10,000 in a historically balanced Perth market.
- New housing remains expensive: National residential construction costs are more than 30% above 2019 levels.
- Demand is still being renewed: Western Australian population growth is above trend, unemployment is low, and resources employment has expanded for eight straight years.
- Affordability is the real constraint: Perth is no longer the bargain it was five years ago, so performance is becoming increasingly suburb-specific.
What Is Really Happening Beneath the Flat Headline?
Perth is no longer the market where almost every property sells immediately and broad-based gains hide poor asset selection. The citywide number has flattened, but five underlying forces explain why that slowdown is not the same thing as a serious decline.
The important distinction is between a market that is becoming calmer and one that is becoming distressed. Perth has clearly become calmer. The evidence for widespread distress, oversupply, or forced selling is not there.
1. Longer Selling Times Do Not Equal Collapsing Demand
Back in February, the average Perth house sold in nine days. Units sold in eight. That was not a normal market. Buyers could inspect on Sunday and feel compelled to submit an offer by Monday, often before arranging proper due diligence or returning for a second look.
The latest figures put houses at 14 days and units at 13 days. That is a clear slowdown, but two weeks is still a fast selling period by normal standards. It gives buyers breathing room, reduces panic bidding, and allows finance, building inspections, and contract conditions to be considered properly.
2. The Listing Number the Headlines Leave Out
More owners chose to sell through April and May, with more than 1,000 new listings arriving in some weeks. By the end of May, active listings reached 5,137. That was the first time the total had crossed 5,000 since November 2024, which understandably attracted attention.
Yet 5,000 listings are not a flood. A broadly balanced Perth market has historically held more than 10,000 properties for sale. Even after the recent increase, available stock remains around half that benchmark. The cupboard is less bare than it was, but it is still nowhere near full.
3. New Supply Is Not Riding to the Rescue
Established listings are only one side of supply. The other is new construction, and this is where the pressure becomes structural. Residential building costs across Australia are more than 30% higher than in 2019. Materials, labour, finance, and compliance have all become more expensive.
When it costs more to build, the additional cost is passed through to buyers or a project no longer stacks up and is delayed or abandoned. In the first case, a higher new-build price supports the value of comparable established homes. In the second, fewer dwellings are created and demand spills back into the established market.
4. Demand Is Being Renewed Faster Than Supply
Western Australia continues to attract new residents at a rate above its long-term trend. Every additional household needs somewhere to live, whether that is a rental or an owner-occupied home. At the same time, the state economy remains resilient, unemployment is low, and the resources sector has recorded eight consecutive years of employment growth.
The conditions a genuine property crash would need are very different: unemployment rising sharply, population growth reversing, forced sellers flooding the market, and total supply moving decisively ahead of demand. None of those ingredients is visible at the necessary scale today.
5. Affordability Changes the Game
For years, Perth was Australia’s obvious value play: comparatively low prices, attractive rental yields, and strong interest from east-coast investors whose budgets went further. After substantial growth, that proposition has changed.
Dwelling values rose 20.5% over the previous 12 months, and the median dwelling value cited in the analysis reached $1,029,797. Perth may remain cheaper than Sydney, but it is no longer the bargain it was five years ago. Interest-rate increases have also reduced borrowing capacity and raised repayments.
The easy-money phase is therefore over. Buying almost anywhere and expecting another 20% within a year is not a credible strategy. That makes choosing the right suburbs to invest in more important than ever. Affordable outer-ring locations, including parts of the City of Rockingham, can continue to record strong results while other pockets genuinely stall. Rental conditions remain supportive, with Perth house rents rising more than 9% over the year cited in the video.
So, Is the Perth Property Boom Over?
If by boom we mean property selling in nine days, rushed offers, and 20% annual gains almost everywhere, then yes, that phase is over. It was never sustainable, and it was an uncomfortable environment in which to make a careful investment decision.
If over means prices are about to fall off a cliff, the current data does not support that conclusion. Perth still has low listings, constrained construction, strong population growth, and low unemployment. Those forces can coexist with flat months, small quarterly declines, and greater negotiation. They are inconsistent with the oversupply and distress normally needed for a deep crash.
What This Means for Owners and Buyers
The calmer market changes how people should respond:
- If you already own in Perth: A slower quarter is not, by itself, a reason to sell. Review the property’s local supply, rental performance, debt position, and original investment case before reacting to a citywide headline.
- If you are looking to buy: The softer window offers more choice, less competition, and better due-diligence conditions than the nine-day frenzy. The opportunity is selective, so suburb-level research is essential.
Perth is not breaking down. It is moving from a broad frenzy into a selective, fundamentals-driven market.
Summary
- Perth values rose 0.1% in July and fell 0.3% across the quarter, a significant slowdown from annual growth above 20%
- Average selling times moved from nine to 14 days for houses and from eight to 13 days for units, which is still fast by normal standards
- Active listings reached 5,137, but remain roughly half the level associated with a balanced Perth market
- Construction costs remain more than 30% above 2019 levels, limiting new supply and supporting replacement values
- Population growth, low unemployment, and eight years of resources employment growth continue to support housing demand
- Affordability is now the main constraint, making performance increasingly suburb-specific
- The broad frenzy has ended, but the conditions required for a deep Perth property crash are not currently visible
Frequently Asked Questions
For careful buyers, the current window offers more choice, less competition, and better due-diligence conditions than the earlier nine-day selling frenzy. That does not make every property a good purchase. Research and asset selection matter more as the Perth market matures.
Performance is becoming suburb-specific. Relatively affordable outer-ring areas, including parts of the City of Rockingham, were highlighted as continuing to post strong results. Local supply, employment access, amenity, dwelling type, and price point still need to be assessed property by property.
Higher costs either make new housing more expensive or prevent projects from proceeding. More expensive new stock raises replacement values for comparable established homes, while fewer completed dwellings keep buyer and renter demand focused on the existing market.
No. Active listings reached 5,137 at the end of May, but a balanced Perth market has historically carried more than 10,000 listings. Buyers have more choice than they did during the frenzy, while total supply remains around half the level associated with a balanced market.
The citywide Perth market has flattened. Values rose 0.1% in July and fell 0.3% across the quarter cited in the analysis. That is a material slowdown from annual growth above 20%, but it is not evidence of a broad crash. Listings, employment, population growth, and new housing supply remain inconsistent with the conditions normally required for a deep fall.
About the Author
Niro Thambipillay
Niro is the founder of Investment Rise, one of Australia’s most trusted property buyers agencies. He has helped hundreds of first-time investors build property portfolios and was voted one of the most trusted Real Estate entrepreneurs in the Asia Pacific region (APAC 2022). Niro is also the author of “How to Build a Property Portfolio That Pays You an Income Every Month.”
