Homes taking nearly twice as long to sell

The time taken to sell a property in Perth has nearly doubled in the past three months.

According to the latest data from REIWA, houses sold in a median of 14 days in May, while units sold in a median of 13 days. This compares to nine days for houses and eight days for units in February.

REIWA President Suzanne Brown said the Perth property market had eased over the past two months.

“The March quarter was characterised by lower-than-average new listings and very strong demand, which saw properties being snapped up in just over a week,” she said.

“Over April and May we have seen over 1,000 new listings per week, which has contributed to the easing of the market.

“There has also been a shift in buyer sentiment. While the increase in new listings has given buyers more choice and more time to make a decision, they are also dealing with the effects of three consecutive interest rate rises. This impacts borrowing power and also affordability once you have a mortgage. In response to this, buyers are being more discerning.

“As a result of these changes, properties are taking slightly longer to sell.

“And I note this is all relative. Yes, it is a change from the rapid sales conditions experienced earlier in the year, but it is on par with timeframes at this time last year, and it’s still well below the 50-day average seen in the five years preceding COVID.

“Conditions vary from suburb to suburb, so if you are thinking of selling, I recommend you speak with your local REIWA agent about market activity in your area.”

According to reiwa.com data, the fastest selling suburbs for houses in May were Nollamara and Coolbellup (six days); Subiaco, Hillarys, Forrestfield, Dianella, and Iluka (seven days); and Yokine, Woodvale, and Lesmurdie (eight days).

The fastest selling suburbs for units were Tuart Hill (five days); Cockburn Central (six days); Wembley (seven days); Yokine (eight days); Maylands (nine days); Subiaco and Scarborough (10 days); and Rockingham, Perth, and Midland (12 days).

Perth sales market

Perth property prices rose again in May.

The median house sale price* rose 2.2 per cent over the month to $920,000. This was 16.5 per cent higher year-on-year.

The median unit sale price* increased 2.3 per cent over the month and 22.0 per cent over the year to $660,000.

Ms Brown said while the rate of growth remained strong, the changes in market conditions were likely to see it slow in the coming months.

“If listings continue to come to market at similar levels, and if there are more interest rate increases in the coming months that reduce affordability, price growth should ease,” she said.

“However, the market was in a similar place at this time last year, and a drop in new listings in the second half of the year, combined with ongoing strong demand, saw frenzied conditions return.”

Ms Brown cautioned against reading too much into the market changes.

“While media headlines are trumpeting the demise of some east coast markets, particularly in the wake of the Federal Budget, we need to remember the conditions driving the Perth market remain. There is still an imbalance between supply and demand, and our economy is strong,” she said.

“A slowdown in growth and a change from just over one week to sell a property to two weeks do not represent a downturn. Yes, the market has softened slightly. Based on current conditions this is likely to continue. I think a more balanced market would be welcomed by industry and the community.”

The suburbs that saw the most median house sale price growth in May were Harrisdale (up 4.9 per cent to $1,035,000), Landsdale (up 4.9 per cent to $1,165,000), Bassendean (up 4.5 per cent to $992,500), Southern River (up 2.8 per cent to $1,031,000), and Subiaco (up 2.7 per cent to $2,278,000).

Padbury, Wellard, Carramar, Hillarys and Wanneroo were also among the top performers, recording growth of 2.3 per cent or more over the month.

The suburbs that saw the most median unit sale price growth were Rockingham (up 2.6 per cent to $547,500), Innaloo (up 1.9 per cent to $700,000), Maylands (up 1.7 per cent to $610,000), Rivervale (up 1.6 per cent to $625,000), and Perth (up 1.6 per cent to $630,000).

Wembley and Subiaco were also among the top performers, recording growth of 1.2 per cent or more over the month.

Listings for sale

The number of properties for sale on reiwa.com was 5,137 at the end of May. This was 16.0 per cent higher than April 2026 and 20.7 per cent higher than a year ago.

Ms Brown said it was the first time active listings** had been over 5,000 at the end of a month since November 2024. 

Perth rental market

Perth median rent prices showed stability in May, in the wake of rental reform announcements by the State Government and taxation policy changes at the Federal level.

The median weekly rent for houses remained unchanged at $750 but was 9.5 per cent higher than a year ago.

The median weekly rent for units was also stable at $700. This was 7.7 per cent higher than May 2025.

The median dwelling rent rose 1.4 per cent over the month to $730 per week, which was 7.4 per cent higher than the same time last year.

Ms Brown said after strong growth in the past few months, price stability was welcomed but noted the WA market had yet to see the fallout from the Federal Budget announcements.

“Investors are evaluating their positions now they have some clarity about the changes to the capital gains tax discount and negative gearing,” she said.

“As negative gearing is grandfathered, those investors whose property is negatively geared are likely to hold onto their investment, which will not free up a home for someone to buy, However, it will ensure a rental property remains in the market.

“Investors close to retirement who are considering selling may decide to do so before the minimum 30 per cent tax rate is applied on 1 July 2027. This may increase sales supply slightly over the next year, but it will not have a significant impact on affordability.

“Of great concern for the rental market is modelling released last week by the REIA. This showed rent prices will rise by $9 per week over the next four years, as opposed to the government’s claim of a modest $2 per week lift, while new housing starts will fall by over 8,700 dwellings.

“If we want to improve outcomes for renters we need to increase rental supply. To do that we need an environment that encourages more investment, not deters it.”

Ms Brown said while the Federal Government was suggesting the taxation changes would even the playing field for first home buyers, in reality they were likely to increase competition with investors.

“Removing negative gearing for established homes is intended to reduce competition between first home buyers and investors. It will have the opposite effect,” she said.

“Investors that do not want to build a new home will seek investments that can be neutrally or positively geared. They are likely to look for established homes in lower-priced suburbs, or at cheaper property types such as apartments and units.

“However, these are usually the suburbs and types of properties that also appeal to first home buyers seeking to enter the market.

“In addition, deliberately driving investors towards new builds will also put them in direct competition with first home buyers, who often look to new builds as a way to get their foot on the property ladder.”

According to reiwa.com data, the suburbs that saw the most growth in their median weekly house rent price in May were Harrisdale (up 5.7 per cent to $830), Waikiki (up 4.6 per cent to $680), Thornlie (up 4.3 per cent to $730), Clarkson (up 3.2 per cent to $722), and Balga (up 2.9 per cent to $720).

The suburbs that saw the most growth in their median weekly unit rent price were South Perth (up 11.5 per cent to $777), Wembley (up 4.3 per cent to $600), Maylands (up 3.2 per cent to $650), Subiaco (up 2.6 per cent to $800), and West Perth (up 2.0 per cent to $765).

Listings for rent

There were 2,307 properties available for rent on reiwa.com at the end of May. This was 3.5 per cent higher than April 2026 but 3.1 per cent lower than the same time last year.

Median leasing times

Homes leased in a median of 15 days during May, unchanged from April but two days faster than 12 months ago.

reiwa.com data showed the suburbs recording the fastest median leasing times were Hamilton Hill (seven days); Leederville (10 days); Harrisdale, Bassendean and Armadale (11 days); and Yokine, Success, Maddington, Eglinton and Byford (12 days).

* REIWA publishes an annual median sale price based on pending and settled sales.

** Active listings – the number of properties advertised on reiwa.com at any given time. New listings – new properties listed for sale.