The Perth property market is entering a critical transition phase — not a crash, but a shift.
After several years of rapid price growth, strong demand, and extremely tight supply, the market is beginning to show early signs of cooling. But this is not a negative story. In fact, for informed buyers and sellers, it may be one of the most important windows of opportunity we have seen in years.
A Market Moving from Speed to Stability
At the peak of the recent cycle, Perth properties were selling in as little as 8–9 days on market, with strong competition and limited choice for buyers.
That dynamic is beginning to change. The first and most important indicator of a shifting market is days on market. As this starts to extend from single digits toward 12, 14, or beyond.
Signals a subtle but important shift:
This does not mean prices collapse. It means the market is normalising.
Supply Still Tight – But Pressure Building
One of Perth’s key supports remains low stock levels, currently sitting around 3,000 properties available.
However, several emerging pressures could begin to increase supply:
Importantly, Perth is still structurally undersupplied particularly due to construction constraints, which limits the likelihood of a sharp downturn.
The Psychology Shift: From Greed to Fear
One of the most significant changes happening right now is not economic, it is behavioural.
Over the past few years, sellers were driven by greed: “How much higher can my property go?”
Now, that mindset is shifting toward caution: “Have we reached the top?”
This transition is critical.
When markets shift:
This is what creates opportunity for both sides.
Who Will Drive Listings in the Next Phase?
Contrary to popular belief, most homeowners are not under immediate distress. Instead, the next wave of listings is likely to come from strategic decisions, not forced sales.
Key groups to watch:
Many investors who purchased in the last 3–5 years may begin to sell:
Investors are typically the first to “de-risk” by offloading assets
Particularly in the first-home and middle markets:
Owners who have been:
These sellers may now act sooner to secure current values.
What Happens Next?
If the shift continues, we are likely to see:
In simple terms: The market moves from urgency to strategy
Importantly, this is not a collapse scenario. The lecture makes this clear: “We are not in an economy where people are going to lose their family homes… but we may move into a cooler market.”
Why 2026 Is a Defining Year
One of the strongest insights from the session is this: “This is probably the most important year… in a shifting market.”
Why?
Because shifting markets reward:
Not just momentum. In rising markets, almost any strategy works. In changing markets, only informed strategy works.
The Opportunity
While uncertainty creates hesitation for many, it creates advantage for those who understand the cycle.
Right now:
And most importantly: The gap between “average decisions” and “informed decisions” is widening.
Final Thought
Perth is not heading into a crisis, it is entering a more balanced, more intelligent market phase.
For buyers and sellers alike, the question is no longer: “Is the market good or bad?”
The real question is: “How do I position myself correctly within it?”
Because in every market shift, there are two groups:
The difference between them is where the opportunity lies.
About the Author
Andrew Huggins is Principal of Ray White Urban Springs, the top real estate agent in the City of Belmont for over 20 years. He writes about Perth property trends, WA real estate insights, Australian housing supply and demand, and long-term investment strategy.
A concern we have heard a couple of times recently is: “Because you’re Ray White… will our investment property just be another number?” It’s a fair question. The reality is, while we operate under the Ray White brand, we are a family-owned business, established in 2009 by Andrew & Amy Huggins, … Read more
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