More Choice. More Selectivity.
After several years of exceptionally low stock, rapid price growth and intense competition, Perth’s property market has entered a new phase.
Listings have increased significantly. Properties are taking longer to sell. Buyers are becoming more cautious, and prices have adjusted from their earlier highs.
Yet the market is far from uniform. Well-located, well-presented family homes are still attracting interest, while properties with compromises, unrealistic asking prices or a narrower pool of potential buyers are finding conditions more challenging.
The defining change this quarter is not simply that buyers have more choice. It’s that they have more time to distinguish between properties worth pursuing and those better left alone.
Key Points
- Property values have adjusted. Cotality recorded a 4.7% fall in Perth dwelling values over Q3, although values remain 10.1% higher than a year ago.
- Listings have increased substantially. REIWA recorded approximately 7,800 properties for sale at the end of September, with advertised stock more than doubling over the past year.
- Sales activity has moderated. REIWA’s September figures show total sales were 12.6% lower over the quarter and 22.7% lower than a year earlier.
- Properties are taking longer to sell. REIWA’s market insights show median selling times increasing from approximately eight days a year ago to around 24 days in the latest reading.
- Buyers have regained negotiating power. REIWA reports that approximately half of all houses are now selling slightly below their asking price, compared with around one in ten earlier this year.
- Different market segments are behaving differently. Investor and first-homebuyer activity has weakened, while demand for well-located family homes remains comparatively resilient.
- Rental conditions remain relatively tight. REIWA’s median house rent reached $750 per week, up 8.7% over the year, although rental affordability is increasingly stretched.
A Market Moving Towards Greater Balance
For much of the past few years, Perth buyers faced an unusually difficult environment.
Properties were scarce, competition was intense, and there was often very little time to assess an opportunity before making a decision.
The market has changed considerably.
According to REIWA’s September market summary, the number of properties available for sale increased by 35.4% over the quarter and 142.4% over the year, reaching approximately 7,800 by the end of September.
That represents a substantial improvement in choice.
However, Perth is not necessarily experiencing a broad-based buyer’s market. As REIWA President Suzanne Brown recently observed, conditions are more balanced overall, with considerable variation between suburbs, price points and property types.
This distinction matters.
Some properties continue to attract multiple interested buyers, while others remain on the market for weeks without securing an acceptable offer.
The broader market is becoming more balanced, but the experience of buying or selling increasingly depends on the individual property.
Perth’s advertised listings have increased significantly, while median selling times have risen from approximately eight days a year ago to around 24 days. Source: REIWA Market Insights. Latest available data as at October 2026.
Prices Have Pulled Back, but Context Matters
Cotality’s Home Value Index recorded a 1.2% decline in Perth dwelling values during September, bringing the quarterly fall to 4.7%.
Perth values are now 6.4% below their April 2026 peak, although they remain 10.1% higher than a year ago.
The adjustment is significant, particularly following the extraordinary growth experienced over the preceding years.
Interestingly, REIWA’s September figures continue to show positive growth in median sale prices. Its median house price reached $956,000, up 4.4% over the quarter and 18.0% over the year. The median unit price reached $690,000, up 5.5% over the quarter and 22.6% annually.
These figures measure different things.
REIWA’s median prices reflect properties sold over a rolling 12-month period and can be influenced by the types and locations of properties changing hands. Cotality’s Home Value Index is designed to measure underlying changes in property values.
Consequently, the annual median figures still reflect much of Perth’s earlier growth, while Cotality’s index provides a clearer indication of the more recent change in market direction.
Higher borrowing costs, stretched affordability and reduced buyer confidence are now influencing what purchasers can afford and what they are prepared to pay.
For buyers and sellers alike, this makes recent comparable sales, current competition and the quality of competing listings increasingly important. Prices achieved during the earlier market frenzy may no longer reflect what buyers are willing to pay today.
More Stock Doesn’t Necessarily Mean More Good Stock
An increase in listings is welcome news for buyers, but it doesn’t automatically translate into an equivalent increase in worthwhile opportunities.
Some of the additional stock consists of properties that have remained unsold because of unrealistic pricing, poor presentation or characteristics that limit their appeal.
Other properties may be perfectly suitable for particular buyers but lack the scarcity or long-term desirability that we look for when assessing a purchase.
In a rapidly rising market, broad market momentum can disguise the differences between properties.
When buyers have more alternatives, those differences become easier to recognise.
Location within a suburb, land component, orientation, floor plan, school catchment, surrounding development and owner-occupier appeal all influence how desirable a property is likely to remain over time.
These characteristics are particularly important for buyers intending to hold a property through multiple market cycles.
A lower asking price or a larger discount doesn’t necessarily make a property a better purchase.
The first question should always be whether it’s a property worth owning.
Different Buyers, Different Market Conditions
One of the more interesting developments this quarter is the growing divergence between buyer segments.
REIWA reports that investor purchasing activity has declined significantly following the Federal Budget’s taxation changes. First-homebuyer activity has also weakened.
Properties and suburbs that previously attracted strong competition from these groups are consequently experiencing softer demand. Tenant-occupied properties have also become more difficult to sell.
Meanwhile, the family-home, upgrader and lifestyle relocation markets remain comparatively active. Buyers seeking quality homes in established suburbs, strong school catchments and desirable lifestyle locations continue to compete for properties that are difficult to replicate.
This reinforces an important principle: a property’s performance isn’t determined by the broader market alone.
It also depends on who is likely to buy it, why they want it and how many comparable alternatives are available.
For investors in particular, rental yield and cash flow deserve careful consideration in the current environment. However, they should be assessed alongside the property’s underlying quality, scarcity and long-term demand rather than becoming the sole basis for a purchase.
Buyers Have Regained Time and Negotiating Power
The increase in selling times provides further evidence of changing market conditions.
According to the latest REIWA Market Insights, Perth’s median selling time has increased from approximately eight days a year ago to around 24 days in early October 2026.
Although Perth remains relatively active by historical standards, the change is significant.
Buyers now have more opportunity to compare properties, conduct due diligence and negotiate without the same level of urgency experienced during the market’s strongest period.
Negotiating conditions have also changed.
According to REIWA President Suzanne Brown, approximately one in two houses is now selling slightly below its asking price, compared with around one in ten earlier this year.
Offers subject to the sale of another property are also becoming more common and are being accepted more readily.
This is particularly relevant for home buyers looking to upgrade or downsize.
Rather than focusing exclusively on the price achieved for their existing home or the price paid for their next one, these buyers should consider their overall changeover cost.
Buying and selling in the same market can offset some of the effects of changing property values, although the outcome will depend on the relative performance of the two properties.
Finance arrangements remain important. While sellers may now be more receptive to subject-to-sale offers, a buyer with greater financial certainty can still hold a negotiating advantage.
For buyers considering bridging finance or alternative settlement arrangements, it’s worth discussing the available options and associated risks with their mortgage broker or lender before making an offer.
The Rental Market Remains Comparatively Tight
The rental market presents a different picture from the sales market.
REIWA recorded a median house rent of $750 per week at the end of September, representing annual growth of 8.7%. The median unit rent reached $700 per week, up 7.7% over the year.
Although rental growth has moderated from its earlier pace, rents remain substantially higher than they were several years ago.
There were 2,037 properties advertised for rent at the end of September, 8.8% fewer than a year earlier.
This contrasts with the substantial increase in properties available for sale.
Nevertheless, rental affordability is becoming an increasingly important constraint. Higher rents don’t necessarily mean landlords can continue increasing them at the same pace, particularly when tenants are already allocating a significant proportion of their income to housing.
For investors, the combination of higher purchase prices, borrowing costs, insurance, maintenance and other holding expenses also means that rental income needs to be considered in the context of the property’s overall financial position.
A strong rental market can support an investment, but it doesn’t compensate for buying the wrong property.
What I’m Watching in Q4
As we enter the final quarter of 2026, several developments will be worth monitoring.
Stock levels and sales activity. Will listings continue to accumulate through spring, or will more realistic pricing and improving buyer choice help lift transaction volumes?
The direction of property values. Will the recent correction begin to moderate, or will affordability constraints and borrowing costs continue to weigh on prices?
Differences between market segments. Will the gap between desirable family homes and properties with more limited buyer appeal become increasingly apparent?
Investor participation. How will changes to taxation policy, borrowing costs and rental yields influence investment activity?
Rental conditions. Will rental availability remain constrained, or will affordability pressures increasingly limit rental growth?
These are developments to monitor rather than reasons to attempt to predict precisely when the market will reach its next turning point.
For buyers, the more useful question is whether a particular property represents a sound purchase at today’s price, given their circumstances and long-term objectives.
More Choice. More Selectivity.
Q3 has brought one of the clearest changes in Perth’s property market for some time.
Prices have pulled back. Listings have increased. Properties are taking longer to sell, and buyers have regained some negotiating power.
But greater choice brings a different challenge.
When properties are scarce, buyers often focus on whether they can secure an opportunity.
When properties become more plentiful, the challenge shifts towards deciding which opportunities are genuinely worth pursuing.
It’s tempting to view a negotiable price as evidence of a good purchase. Yet an average property bought at a discount can still be a poorer long-term decision than an outstanding property purchased at a fair price.
That’s why our approach remains focused on quality, scarcity, underlying land value and long-term owner-occupier appeal.
Market conditions will continue to change.
The principles behind buying well shouldn’t.
And remember that markets tend to reward patience far more often than prediction.
Buy well. Build wealth. With confidence.
If you’re considering investing, upgrading, downsizing or relocating, and would like to understand how the changing market may affect your next purchase, please feel free to get in touch with Buyers Advocate Perth.
https://www.buyersadvocateperth.com.au/contact-us/
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— Review the previous Perth Property Market Update here → Perth Property Market Update Q2 2026
Disclaimer
The information in this market update is provided for general information only and does not constitute financial, legal or investment advice.
While every effort has been made to ensure the information is accurate at the time of publication, property markets are subject to change and past performance is not a reliable indicator of future results.
Readers should seek independent professional advice tailored to their personal circumstances before making any property or investment decisions. Buyers Advocate Perth, its directors, employees and associated entities accept no liability for any loss or decision arising from reliance on this publication.
