Perth Property Gridlock and What It Means for Local Homeowners

If you are researching a real estate agent in the City of Belmont WA, understanding what is really happening in the Perth property market has never been more important. While recent price growth has attracted attention, the more significant story lies beneath the surface, an extreme shortage of available homes combined with sustained buyer demand.

This environment can best be described as Perth Property Gridlock: a situation where homeowners who might otherwise sell are delaying their decision because they cannot find suitable replacement properties. Rather than rising prices encouraging more listings, supply remains constrained, intensifying competition and reshaping property sales across the City of Belmont.

Listings at Exceptionally Low Levels

In late 2025, Perth’s total active listings fell to below 2,000 properties, according to REIWA data. For a city of Perth’s size, this represents an unprecedented level of supply constraint and sits well below long-term averages.

Importantly, this does not appear to be a short-term or seasonal phenomenon. Listing volumes have remained persistently low, pointing to a structural imbalance between supply and demand, a key factor for homeowners considering whether to sell their house in the City of Belmont.

Understanding Perth Property Gridlock

Perth Property Gridlock reflects the interaction of several forces operating at the same time:

• Many homeowners are reluctant to sell due to limited options for onward purchase
• Buyer demand remains steady, supported by population growth and employment opportunities
• New housing supply continues to lag demand due to construction and labour constraints

When demand remains firm and supply cannot respond, upward pressure on prices becomes difficult to avoid, particularly in tightly held local government areas such as the City of Belmont.

Perth’s Maturing Economic Profile

The current market is being supported by long-term economic and demographic drivers rather than short-term sentiment.

These include:

• Ongoing interstate and international migration to Western Australia
• Significant defence investment, including the AUKUS submarine program, expected to support housing demand for more than 2,000 personnel and associated workers
• Major infrastructure projects such as the $5 billion Perth Airport expansion
• Mining and resources companies increasingly requiring FIFO employees to be based in WA

Collectively, these factors contribute to sustained housing demand across a wide range of price points and dwelling types, reinforcing confidence in City of Belmont property sales fundamentals.

Context: Bigger Than 2006, Comparable to Few Periods in History

In many respects, current conditions appear more constrained than during the 2006 Perth boom, largely because supply today is materially tighter. In previous cycles, rising prices tended to encourage more sellers to list. That response has been far more limited in the current environment.

The last period that bears some comparison is the late 1980s, particularly 1988, when Perth recorded house price growth of approximately 53% during a strong demand cycle. While today’s drivers differ, the combination of limited supply and sustained demand is reminiscent of that period.

Price Momentum and Possible Scenarios

Perth’s median house price has reached record levels, and price momentum remains positive heading into 2026.

While forecasts naturally vary, current conditions suggest continued upward pressure on prices. Should listing volumes remain constrained and demand hold steady, there is a plausible scenario in which house prices rise by more than 20%, and unit prices increase by more than 25%, over the next 12–18 months.

Such outcomes would depend on supply remaining tight and broader economic conditions remaining supportive.

Units and Apartments Gaining Attention as an Affordable Alternative

As affordability pressures increase, many buyers are increasingly considering units and apartments as an alternative to detached housing. This shift is particularly evident in well-located inner-metro areas and has contributed to stronger relative price growth in the unit market.

This trend is highly relevant across the City of Belmont, where a significant proportion of apartments and villas remain accessible relative to broader Perth benchmarks.

Demand for units is being supported by:

• Affordability considerations
• Proximity to employment, transport, and the CBD
• Interest from professionals, downsizers, defence, and FIFO workers

For many buyers, units within the City of Belmont now represent the most realistic entry point into the Perth market.

The City of Belmont: A Localised View

The City of Belmont, encompassing Belmont, Rivervale, Cloverdale, Kewdale, Ascot and Redcliffe, provides a clear local illustration of Perth Property Gridlock.

These suburbs share several defining attributes: proximity to the CBD, direct access to Perth Airport, established infrastructure and strong lifestyle appeal. However, stock levels across the entire City of Belmont remain extremely limited.

• Belmont and Cloverdale continue to attract strong demand for established homes and villas, particularly from owner-occupiers seeking convenience and long-term liveability.
• Rivervale and Ascot are seeing heightened competition for apartments and townhouses, driven by professionals, downsizers, and aviation and defence linked buyers.
• Kewdale and Redcliffe are benefiting from improving amenity and strategic location advantages, while also experiencing constrained turnover as long-term owners hold their positions.

Across the City of Belmont, a common theme is emerging: homeowners who might ordinarily sell are choosing to remain in place due to the difficulty of buying back into the same local area.

As the highest-selling agent in the City of Belmont and Rivervale for many consecutive years, I am consistently observing:

• Strong buyer depth across multiple price points
• Very limited availability of quality stock
• Competitive conditions even in traditionally quieter segments of the market

Choosing an Ethical, No-Pressure Real Estate Agent in the City of Belmont WA

Many homeowners searching for an ethical real estate agent in the City of Belmont are not looking for hype, they want clarity, transparency and calm, informed advice.

At Ray White Urban Springs, servicing the City of Belmont WA, our approach is deliberately measured. We focus on providing homeowners with accurate market information and realistic expectations, allowing them to decide whether now is the right time to sell without the pressure.

In a market shaped by scarcity, working with a no-pressure real estate agent in the City of Belmont who understands both market dynamics and local nuance can make a meaningful difference.

Looking Ahead

Unless there is a material and sustained increase in housing supply, Perth’s property market is likely to remain under pressure through 2026. This suggests continued firm conditions for sellers and a challenging environment for buyers, where preparation, timing and informed decision-making are increasingly important.

For homeowners considering whether to sell their house in the City of Belmont, understanding these dynamics and speaking with a trusted local expert has never been more valuable.

By Andrew Huggins
Principal, Ray White Urban Springs
Highest-selling agent in the City of Belmont and Rivervale for many consecutive years