Perth’s property market has changed noticeably. After several years in which low stock levels and strong buyer competition pushed prices rapidly higher, the market is becoming more balanced. More properties are available for sale, buyers have greater choice, borrowing capacity has been reduced by higher interest rates, and global uncertainty is affecting confidence. However, this does not mean every part of the Perth property market will perform in the same way.
The most likely outcome over the next six to 12 months is a two-speed market: affordable homes may remain relatively resilient, while properties above approximately $900,000 could face greater price resistance and longer selling periods.
This is not a prediction of a Perth property crash. It is a cautious assessment of how rising supply, weaker confidence, high interest rates and a prolonged Middle East conflict may affect different price brackets.
At the beginning of July 2026, there were 6,184 properties listed for sale across Perth. That was 10.9 per cent higher than four weeks earlier and 68.3 per cent higher than a year earlier. Rental stock moved in the opposite direction, with the number of available rental properties 6.7 per cent lower than a year earlier.
The increase in sale listings does not necessarily indicate widespread financial distress. New listings have simply returned closer to normal levels after an extended period of extreme undersupply.
However, rising listings become important when they are accompanied by softer demand.
REIWA has reported reduced activity from investors and first-home buyers, fewer offers being received by sellers and a rise in the proportion of properties selling below their advertised price. Three in 10 Perth houses were discounted in June, compared with approximately one in 10 during the March quarter. The median time to sell also increased to 18 days. The market remains active, but the conditions are clearly less forgiving.
The continuing conflict involving the United States and Iran matters primarily because of its effect on energy prices, inflation, interest rates and confidence.
Higher fuel and transport costs flow through to businesses and households. They can increase the cost of goods, construction and everyday living, leaving households with less capacity to service larger mortgages.
The Reserve Bank has already increased the cash rate three times during 2026. It has noted that higher energy prices are contributing to inflation, consumer spending is slowing and housing prices are beginning to fall in some Australian capital cities. The RBA has also warned that a prolonged conflict could result in a combination of higher inflation and weaker economic activity.
Importantly, the RBA’s May forecasts assumed that most disruption to global oil supply would be substantially resolved before the end of 2026. A longer conflict would therefore represent a less favourable outcome than the Bank’s central scenario.
The effect on Perth property would probably be gradual rather than immediate. Buyers generally respond first by becoming more cautious, delaying decisions and making lower offers. Price movements usually follow later.
The lower and middle sections of the Perth property market have a larger and more diverse buyer pool.
Homes below approximately $900,000 can attract first-home buyers, investors, downsizers, families and owner-occupiers seeking an affordable entry point into an established suburb. This broader demand should provide some protection against a major fall.
For properties below $900,000, a cautious working range would be:
| Period | Possible movement |
| Next 6 months | Approximately −2% to +2% |
| Next 12 months | Approximately −3% to +3% |
These ranges should not be interpreted as a precise forecast. Individual suburbs and property types may perform well outside them.
Good-quality houses, villas and low-strata properties may remain stable or continue recording modest growth. Properties requiring major repairs, carrying high strata costs or located in less desirable positions could still decline. Affordable homes also benefit more directly from rising rents. When the cost of renting approaches the cost of ownership, some financially capable tenants become more motivated to buy.
The market becomes more sensitive once prices move beyond approximately $900,000. Buyers in this range often require larger loans, depend on the successful sale of another property or are making a discretionary upgrade rather than purchasing out of necessity. These buyers are more likely to delay their decision when confidence falls.
A cautious working range for homes between approximately $900,000 and $1.2 million would be:
| Period | Possible movement |
| Next 6 months | Approximately −2% to −5% |
| Next 12 months | Approximately −3% to −7% |
For ordinary homes above approximately $1.2 million, the downside risk may be greater:
| Period | Possible movement |
| Next 6 months | Approximately −3% to −7% |
| Next 12 months | Approximately −5% to −10% |
These figures describe possible broad-market movements, not the likely result for every property.
Scarce, well-located or exceptionally presented homes may remain strongly contested. A premium property with genuine land value, architectural quality or a rare position can behave very differently from a generic home at the same price.
The greatest risk is likely to sit with higher-priced properties that are overcapitalised, compromised, poorly presented or priced according to conditions that existed six months earlier.
The rental market may move in the opposite direction to sale prices.
At the end of June, Perth had 2,211 properties available for rent, 8.2 per cent fewer than a year earlier. Median house rents were $750 per week, 10.3 per cent higher over the year, while median unit rents were $700 per week, up 5.3 per cent.
This creates an unusual possibility: sale prices could soften while rents continue increasing.
When an investor sells to another investor, the rental property remains in the rental pool. When an investor sells to an owner-occupier or first-home buyer, the dwelling is generally removed from rental supply. If investor purchases slow while existing investors continue selling, Perth could have more homes available for sale but fewer homes available for rent.
Over the next 12 months, a cautious rental outlook would be approximately 5% to 10% growth, with stronger increases possible in affordable houses, villas and well-located units where rental supply remains limited.
Rising rents could eventually attract investors back into the market, but that response may take time. Investors must weigh higher rental income against interest rates, taxation settings, acquisition costs and the possibility of softer capital values.
Western Australia’s housing construction pipeline is improving. WA recorded 24,223 dwelling commencements in the year to March 2026, an increase of 15.2 per cent. Dwelling completions also rose during the March quarter, and more than 26,700 homes were under construction.
This is positive for housing availability, but new supply does not arrive immediately.
Construction delays, skilled-labour constraints and high building costs remain significant. The WA Housing Industry Forecasting Group expects population growth and limited availability to continue supporting demand, while also warning that economic momentum may moderate because of inflation, elevated interest rates and softer business confidence.
Therefore, increased construction should gradually reduce pressure rather than suddenly overwhelm the established housing market.
The City of Belmont includes a wide range of property types and price points across Belmont, Rivervale, Cloverdale, Kewdale, Redcliffe and Ascot.
Affordable houses, villas and townhouses should remain relatively well supported because they appeal to several buyer groups. Their proximity to the Perth CBD, airport, employment centres and transport infrastructure also remains important. However, buyers are becoming more selective.
Properties with significant maintenance requirements, high strata levies, poor presentation or unrealistic pricing are likely to take longer to sell. This is particularly relevant to investor apartments and properties where holding costs have increased materially.
Higher-quality family homes may continue to attract demand, but sellers above $900,000 should expect buyers to compare competing properties carefully and negotiate more firmly.
The correct campaign and pricing strategy will matter more than it did during the peak of the market.
A major Perth property crash is not the most probable outcome. Western Australia continues to have strong population growth, a constrained rental market, high construction costs and limited established housing supply relative to its growing population. The Perth median house price over the 12 months to June 2026 was approximately $935,000. However, the market does not need to crash for sellers to experience a noticeably more difficult environment.
A property that might previously have attracted six offers could now receive one or two. A home that sold after its first inspection may now require several weeks of marketing. A vendor who could previously test an ambitious price may now need to meet the market.
The most likely outcome is therefore not a uniform fall across Perth. It is a period of greater variation between suburbs, price brackets and individual properties.
My cautious central view is:
| Market segment | Six-month outlook | Twelve-month outlook |
| Below $900,000 | −2% to +2% | −3% to +3% |
| $900,000–$1.2 million | −2% to −5% | −3% to −7% |
| Above $1.2 million | −3% to −7% | −5% to −10% |
| Perth rents | +2% to +5% | +5% to +10% |
These are broad scenario ranges rather than guaranteed outcomes.
The direction will depend heavily on how long the Middle East conflict continues, what happens to oil prices, whether the RBA raises rates again, the pace at which Perth listings increase and whether employment remains resilient.
Perth property is entering a more cautious phase. Affordable properties are likely to outperform because they benefit from a deeper buyer pool, stronger rental yields and ongoing demand from first-home buyers and owner-occupiers. Higher-priced properties face greater risk because their buyers are more exposed to interest rates, reduced borrowing capacity and confidence.
The market may therefore produce two apparently conflicting outcomes at the same time: softer sale prices in some segments and faster rent growth because the supply of investment property continues to contract.
For homeowners considering selling, the lesson is not to panic. It is to recognise that the strategy that worked during the boom may no longer produce the best result. Accurate pricing, strong presentation, competitive marketing and a sales method that creates genuine buyer competition will become increasingly important.
Andrew Huggins is Principal of Ray White Urban Springs in Perth, Western Australia, and has been a leading real estate agent in the City of Belmont for more than 20 years. Andrew writes about Perth property market trends, Western Australian real estate insights, Australian housing supply and demand, population growth, housing economics and long-term property investment strategy. For advice on selling property in Belmont, Rivervale, Cloverdale, Kewdale, Redcliffe, Ascot, Carlisle, Lathlain or surrounding Perth suburbs, contact Andrew Huggins and the Ray White Urban Springs team.
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