The latest footage from Sydney’s auction market tells a very different story to the one Australians became used to during the pandemic property boom. Auctioneers are working harder. Buyers are hesitating. Investors are disappearing. Sellers are adjusting expectations. Properties are being passed in. Even experienced agents are openly acknowledging softer conditions.
For many Australians watching from Perth, the obvious question is this: Will the same thing happen here?
The answer is more nuanced than many headlines suggest.
While Perth will not be immune to higher interest rates or changing investor sentiment, the WA market is operating from a fundamentally different position to Sydney and Melbourne. In fact, some of the very forces now slowing the eastern states may continue to support Perth over the medium term.
Sydney’s Problem: Affordability Saturation
The Sydney market shown in the transcript reflects what happens when affordability reaches its practical limits.
For years, Sydney property prices were supported by:
But eventually, borrowing capacity becomes exhausted.
That is exactly what the auction footage reveals.
First-home buyers are stretching to their absolute limit. Auctioneers are struggling to generate momentum. Investors are absent. Sellers are negotiating after failed auctions. Importantly, this is not just about economics. It is about psychology.
Property markets are confidence-driven.
In rising markets:
In weakening markets:
Once buyers believe there may be a better deal next month, the entire dynamic changes.
Perth Is Starting from a Very Different Position
Perth’s market structure remains fundamentally different from Sydney and Melbourne in several key ways.
Even after strong growth over recent years, Perth remains significantly cheaper than Sydney.
That matters because Perth buyers:
The affordability buffer is critical. Sydney buyers often entered the recent cycle carrying enormous debt levels relative to income. Perth has not yet reached the same level of financial saturation.
As a result, Perth is typically more resilient during the early stages of higher-rate environments.
Much of Perth’s recent growth has been driven by a genuine imbalance between supply and demand. Listings remain relatively tight. Vacancy rates remain low. Population growth has increased. Construction costs and labour shortages have slowed the delivery of new housing stock. This is important because supply shortages can continue supporting prices even when borrowing conditions become more difficult.
Sydney and Melbourne are largely dealing with affordability fatigue. Perth is still dealing with undersupply. That does not mean prices rise forever, but it does mean Perth’s cycle may continue behaving differently for longer than many expect.
One of the most important aspects of the transcript is the discussion around investor tax changes and the reduction in investor participation. Historically, many eastern states investors accepted poor rental yields because they were relying on long-term capital gains.
If investors become more cautious about speculative growth, many may increasingly focus on:
That potentially benefits Perth. Compared with Sydney and Melbourne, Perth still offers:
In a higher-rate environment, yield becomes more important. That changes investment behaviour.
Perth Will Still Slow — But Probably Differently
None of this means Perth is immune.
All property markets are affected by:
Perth is already showing some signs of transition:
The “everything goes up” phase rarely lasts forever. Instead, Perth is likely moving into a more mature stage of the cycle where:
That is a normal market evolution.
Which Perth Properties May Perform Best?
As affordability pressures gradually build, several segments of the Perth market may continue to perform relatively well.
Affordable Family Homes
Well-located homes in affordable and middle-ring suburbs are likely to remain highly competitive due to ongoing supply shortages and family demand.
Units and Townhouses
Perth apartments and townhouses remain comparatively affordable by national standards.
As detached housing becomes more expensive, many buyers are likely to shift toward:
This segment may outperform expectations over coming years.
High-Quality Scarcity Assets
Properties with genuine scarcity value like character homes, premium lifestyle locations, quality school catchments and tightly held suburbs tend to remain more resilient when markets become selective.
Where Perth May Become More Vulnerable
The upper end of the market is usually the first area to soften when sentiment weakens.
Prestige property depends heavily on:
Luxury coastal homes, lifestyle acreage and premium architectural properties may experience:
That is historically common in Perth market cycles.
The Bigger Picture
The eastern states auction footage is an important reminder that Australian property markets are deeply influenced by:
Housing shortages matter over the long term. However, in the short and medium term, borrowing power and confidence often drive pricing more than anything else. For Perth, the most likely outcome is not a dramatic collapse.
More likely is a transition from:
An extremely hot market, to a still-strong but more selective market.
That is a very different scenario. The boom phase may moderate. But Perth’s relative affordability, supply constraints and stronger rental fundamentals continue to provide support that Sydney and Melbourne increasingly lack.
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.
Auctions may be unnecessary when buyers are already competing in a hot market. As Perth conditions weaken and buyers gain more choice, however, a professionally conducted live auction can create the urgency, transparency and competition required to achieve the strongest possible result.
Rising listings, higher interest rates and global uncertainty are changing the Perth property market. Affordable homes may remain relatively resilient, while higher-priced properties face greater pressure—and rents could continue rising as investor stock declines.