With listings soaring in some suburbs, has Perth’s competitive house market turned a corner?

A new analysis of Australia’s property market has revealed a significant shift in dynamics with increasing listings in popular Perth suburbs giving buyers a stronger position.

MCG Quantity Surveyors’ report, which covers 50 regions, showed rising stock levels in key markets, marking a notable change from the competitive landscape of recent years.

Credit: Cameron Myles

Managing director Mike Mortlock said buyers are in a better position than they’ve been in for years.

“As we see listings rise across regions like Wanneroo and Stirling we expect price growth to moderate,” he said.

“This presents a strategic moment for buyers to step in while interest rates and economic uncertainty hold some buyers back. With a more abundant market, buyers can afford to be selective and negotiate harder.

“It’s an opportune time for first-home buyers and investors who are looking for better value, particularly in outer suburban areas where price pressure is easing.”

Wanneroo and Stirling recorded the most dramatic increases in listings, up 52 per cent and 45 per cent. It was followed by Rockingham (40 per cent), Mandurah (34 per cent) and Swan (21 per cent).

CoreLogic head of research Eliza Owen said with a robust spring selling season underway, the depth of buyer demand to deliver higher and higher profits may be tested in the coming months.

“Perth has seen an extraordinary turnaround in the rate of profitability since the start of the pandemic period,” she said.

“More favourable internal migration trends, an upswing in the resources sector and strong subsequent housing demand has seen the rate of loss-making sales dive from 48.3 per cent in the June quarter of 2020 to just 4.6 per cent four years later.”

Since the start of the pandemic in March 2020 through to August 2024, Perth home values have seen the largest uplift of the capital city markets, at 72.5 per cent.

Stategic Property Group managing director Trent Fleskens said it was a positive sign to see listings on the rise but warned it was just five years ago that the Perth was oversupplied with 17,000 properties on the market.

“A balanced market has 13,000 properties on the market and last year we had 5000 properties,” he said.

“We seem to have hit a natural floor at 3250 over winter this year and as we enter spring selling season, we now sit at 3750.”

Fleskens said prospective homeowners should try and enter the market before interest rates dropped.

“When rates drop, it will be kerosene on the fire for WA,” he said.

“Every other buyer in the market will be artificially richer overnight due to increased serviceability with their banks, which increases their bid capacity.”

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