As we head into the traditionally busy Spring selling season, the Perth property market is facing a unique and challenging situation: buyer demand is incredibly strong, while the number of properties for sale has fallen to a record low.

This imbalance is creating a sense of urgency among buyers and bringing back the “Fear of Missing Out” (FOMO) that we’ve seen in previous heated markets. Here’s what you need to know about the forces shaping the market right now.

The Supply Squeeze: A Winter of Low Listings

Earlier this month, our August market report confirmed that active listings in Perth had dropped to a historic low of just 2,981.

This shortage is largely due to an unusually quiet Winter. We saw the lowest number of new properties coming to market for that season since 2019. With fewer homes to choose from, competition has intensified, properties are selling faster, and buyers are feeling the pressure. While we expect more homeowners to list their properties this Spring, it may not be enough to ease the intense competition.

Demand Set to Surge with New Government Incentives

While supply is tight, demand is not only strong but is expected to increase significantly from October 1st.

The Federal Government is fast-tracking its revised Home Guarantee Scheme, making it much easier for people to enter or re-enter the property market. These changes are a game-changer for many aspiring homeowners.

Key changes to the scheme include:

  • 5% Deposit: Eligible buyers can purchase a home with as little as a 5% deposit, avoiding the need for costly Lenders Mortgage Insurance (LMI).
  • No Income Caps: The previous income limits for applicants ($125,000 for singles, $200,000 for couples) have been removed entirely.
  • No Limit on Places: The scheme is now open to all eligible applicants without a cap on the number of places available.
  • Higher Price Caps: The property price cap in Perth has been increased from $600,000 to $850,000, opening up a much wider range of properties.

Looking ahead, the government is also set to launch its “Help to Buy” shared equity scheme next year, which will provide another pathway to home ownership and continue to fuel demand.

What This Means for You

For Sellers: The current market presents an extraordinary opportunity. With record-low stock levels and a wave of new buyers about to enter the market, listing your property this Spring could lead to a fantastic result in a competitive environment.

For Buyers: It’s crucial to be prepared. The new government schemes are a huge help, but they will also increase competition. Getting your finances pre-approved and being ready to act decisively will be key to your success. While rising prices have made it challenging, these incentives offer a valuable pathway into the market.

Navigating a market with such a strong supply and demand imbalance requires expert advice. If you’re considering your next move, get in touch with our team today for a strategic discussion about your property goals.