Welcome to this month’s Perth property market update. If you’ve been following the headlines lately, you’d be forgiven for thinking Perth’s property market is on the verge of collapse. The truth, as always, is more nuanced — and it’s closely tied to what’s happened since the Federal Budget.
According to REIWA President Suzanne Brown, the Perth market was already softening before the Budget landed, but the changes announced since have reshaped how buyers, sellers and investors are approaching the market. Understanding the Budget’s impact is essential if you’re planning to buy, sell or invest in Perth property over the coming months.
Don’t Believe Every Headline
Before we get into the Budget’s effect on the market, it’s worth addressing the sensationalist headlines doing the rounds. One WA publication recently reported auction clearance rates had dropped to 23 per cent, only for the following week’s rate to jump to 40 per cent — based on just two of five reported auctions. The reality is that WA conducts very few auctions, so clearance rates aren’t a reliable indicator of Perth’s market performance.
REIWA represents more than 90 per cent of active real estate agencies across the state, giving it access to data and insights not always available to other commentators. When it comes to understanding what’s really happening post-Budget, it pays to get your information from those genuinely active in the market rather than a misleading headline.
What the Budget Changed for Investors
In the lead-up to the Budget, speculation about taxation changes drove a wave of investors to seek appraisals or list their properties. However, once the Budget was handed down, the anticipated mass exodus of investors didn’t eventuate — negative gearing remains grandfathered for existing properties, and the 50 per cent capital gains tax discount still applies to gains made before 1 July 2027.
Even so, the Budget changes — combined with three interest rate rises — have dampened investor sentiment. Many investors are now taking a wait-and-see approach, and Perth’s established homes market has seen a noticeable pullback in investor purchasing activity since the Budget. Australians will also no longer be able to borrow through self-managed super funds to purchase residential property, although SMSFs can still contribute equity toward a purchase.
What This Means If You’re Selling
Post-Budget market conditions mean sellers need to reset expectations. Listings have increased over the past two months, giving buyers more choice — and properties that aren’t well-positioned are attracting less interest. “Well-positioned” might mean proximity to a lifestyle hub, distance from a main road, or simply the more desirable side of a street.
Presentation matters more now too. Buyers are more selective in this post-Budget climate, and properties needing work are less appealing. Expect your home to take several weeks (or longer) to sell, and be prepared for fewer offers than during the recent boom. Investors selling a property with a fixed-term lease in place may find this especially challenging, as fewer investor buyers are active and owner-occupiers are often reluctant to take on an existing tenancy.
What This Means If You’re Buying
The post-Budget shift has also created opportunities for buyers. With more stock on the market and both investor and first-home-buyer activity down, overall competition has eased. Having more homes on the market than a few months ago means buyers can take more time with their purchasing decisions, rather than feeling pressured to act on the first home open.
Positively geared investment opportunities are harder to find in Perth, though some may still exist — including in regional areas. If you’re chasing short-term capital growth, it’s worth tempering expectations, as price growth across Perth is currently slowing. Buyers focused purely on speculative gains may need to shift their thinking toward the market’s stronger long-term fundamentals instead.
The Bigger Picture
Despite the post-Budget adjustment, Perth’s fundamentals remain strong. Population growth, a tight rental market and limited housing supply continue to underpin long-term confidence, even as short-term price growth slows. The overall vacancy rate is hovering around 2 per cent and rents continue to rise, although conditions vary from suburb to suburb — a key factor supporting Perth’s longer-term outlook for investors.
So, is the Perth property market crashing? No. It has slowed and buyers have become more cautious, but the market remains underpinned by strong fundamentals. Well-priced homes in desirable locations are still attracting solid buyer interest — it’s simply a more balanced market than the frenzied conditions seen earlier this year.
At Holdsworth Real Estate, this kind of Perth property market update is exactly what we like to share regularly — informed decisions come from understanding real conditions, not sensational headlines. If you’re considering your next move in this post-Budget market, get in touch with our team for tailored advice.
Source: REIWA, Suzanne Brown, President.
Thinking of buying or selling in today’s post-Budget market? Contact Holdsworth Real Estate today for a free, no-obligation appraisal and expert local advice.
