News & Media

By Matthew Hughes

If you’ve been wondering whether Perth’s property boom has run its course, the answer is simple: absolutely not.

In fact, Perth’s market is tighter than ever. At the end of August, just 2,981 properties were listed for sale – the lowest number since records began. In more than 55 suburbs across Perth, buyers are competing for just one available property. To put that in context, there are more licensed agents in WA than there are properties available for sale right now!

This shortage of supply is driving intense competition. According to REIWA, homes are selling in just 10 days on average (down from 15 days in March), with the median dwelling value having increased another 1.1% in August and now sitting at a still relatively affordable $841,928 – nearly $100,000 below the national capital city average.

Despite a slowdown (from very high activity levels), investor lending is still well above the 10-year average at just over 36% and Perth continues to maintain a comfortable lead over other major capital cities with a rental yield of 4.2%.

First home buyer activity is well below the 10-year average as most first timers are awaiting the start of the new FHB Scheme on October 1. This instant injection of a wave of new buyers into the market is going to shrink stock levels even further below the current historic lows to unimaginable levels.

Also, and as CPA Research predicted last year, the demand is pushing up through the market into higher price points and is no longer being driven predominantly by the affordable end of town. The lower quartile was a stark out-performer over the middle and upper pricing segments this time last year, whereas now (see graph below) the growth in the middle sector is now matching the bottom 25% and the luxury market has also kicked into gear. Owner-occupiers and upgraders are showing signs of greater confidence and are benefiting from increased borrowing capacity as the current rate cutting cycle progresses.

Transaction levels in Perth are slightly down, although this is partly seasonal and, as I’ve been advising clients, this isn’t due to a lack of demand. It’s a lack of stock. And it’s creating an environment where those who wait will almost certainly pay more.

For investors, Perth remains one of the most attractive markets in the country – strong rental yields, limited supply, and ongoing demand are combining to drive sustainable growth. For homebuyers, waiting on the sidelines could mean missing the window to secure the right property before prices rise further.

At Capital Property Advisory, we’re helping our clients get ahead by accessing pre-market and off-market opportunities that most buyers never see. Over half of the properties we purchase are secured this way, giving our clients a significant edge in a highly competitive market.

If you’ve been thinking about your next move – whether that’s a home for your family or your next investment – now is the time to act.

Call us on 1300 CAPITAL or book your Strategy & Briefing Session by clicking HERE today.