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The number of properties on the market in the Western Australian capital surpassed 6,000 at the end of June, while data from the Real Estate Institute of Western Australia (REIWA) found that three in 10 properties were now selling below their listing price, a far cry from the heated market earlier in the year.
Nonetheless, brokers on the ground have told Broker Daily that overall supply remains tight, and the city’s market “has not slowed down in any meaningful way”.
Supply returns, demand wanes
According to REIWA’s latest data, the number of properties advertised for sale in Perth surpassed 6,000 at the end of June, which was 14.8 per cent higher than the end of May and 58.3 per cent higher than a year ago.
At the end of 2025, listings for sale in the city fell to a record low of 1,881. The median sale time for houses and units was just nine days in December, seven days faster than a year earlier.
Now, houses in Perth are sitting on the market for a median of 18 days, as are units.
“To quote one of our members, ‘the days of one-and-done are gone’,” REIWA president Suzanne Brown said.
Brown said the changes in the market were due to an increase in new listings over the past few months and a softening of demand.
“The number of new listings in June is on par with the five-year average for this month, which is positive after the shortage of listings seen earlier this year,” Brown said.
“With properties coming to market in reasonable numbers since the end of March, the supply side of the supply and demand equation has improved.
“We have also seen a noticeable change to demand in the wake of the Federal Budget and the back and forth over the taxation legislation. Despite there being more properties on the market, sales activity decreased in June, more so than you would expect at this time of year.
“Our members have reported a decline in inquiry from potential investors. I have also seen a reduction in activity from first home buyers, the very people this legislation is aiming to help.
“Now that the taxation policies have passed Federal Parliament and we have more certainty, it will be interesting to see if market activity picks up in the coming months.”
Prices finally moderate
Perth was one of the capital cities where prices continued to rise in June – but at a lower rate than in previous months.
According to data analytics company Cotality, Perth’s median house price rose 0.7 per cent over the month of June, to $1,046,551.
This is 23 per cent higher than a year ago, the strongest growth of any capital city.
However, Brown said that the changes in market conditions had seen the rate of price growth slow, and she expected that trend to continue.
“The changes in the market mean sellers are going to have to adjust their expectations and price their property for today’s market, not what they might have received a few months ago,” she said.
Indeed, REIWA’s research found that three in 10 houses sold for less than their listing price in June so far.
Of those sellers who were discounting, the average difference between the listing price and sale price was 7.5 per cent.
“This isn’t a significant change from the average discount of 6.3 per cent recorded in the March quarter,” Brown said.
“However, where we have seen the biggest change in the market is in the overall average of the difference between the listing and sale price.
“Seventy per cent of houses have sold for at or over their listing price in June, but the average difference between listing and sales price has dropped from +6.5 per cent in the March quarter, to +1.0 per cent.
“This change does not suggest prices are falling, but more that we are seeing the market stabilise and the rate of price growth slow.”
Brokers report strong vitals on the ground
Adam Burstein, managing director of Core Finance Co, told Broker Daily that while demand and price growth had cooled, the fundamentals of the market meant he had not seen a pronounced slowdown in business.
“From my perspective, what we’re seeing on the ground is that the Perth market is still very strong,” he said.
“People are definitely becoming a little more cautious with their decisions. I think that’s less about a lack of confidence and more about being budget conscious and not wanting to overcommit.
“At the end of the day, people still need homes and somewhere to live. WA continues to experience strong population growth, low rental vacancy rates and an ongoing shortage of housing, so demand remains healthy.”
Burstein said that he had noticed that properties were taking longer to sell.
“Buyers are taking a little more time before pulling the trigger, particularly in the established housing market. Twelve months ago, a well-priced property could sell in a day or two. Now it might take a week or two,” he said.
“That’s still a very strong market by most standards, but buyers are doing more research and due diligence before committing.”
[Related: MFAA calls for certainty as tax reforms pass Senate and House]
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