Perth’s real estate market has drawn attention from across Australia because houses are selling more quickly, prices have been high, bidding wars are frequent in many suburbs , and the number of properties available to buyers has been dropping to multi-year lows and, most recently, record lows.   

Weak new listings entering the market, high and consistent buyer demand, seasonal listing trends, and behavioural considerations (sellers preferring to wait until they have a purchase in place) all contributed to Perth’s active listings reaching a record low of 2,981 by the end of August 2025.  

These factors, along with demographic and macroeconomic developments, have created a seller-skewed market that benefits sellers while making it more difficult for buyers, especially first-time homebuyers.

• According to data from www.reiwa.com, the number of active listings fell to a historic low of 2,981 at the end of August.   
• This was 18.3 per cent less than a year ago and 10.4 per cent less than July.
• Due to the low number of new listings during the winter and the continued high demand, the number of current listings has been declining.
• Although the numbers have been lower than anticipated, the challenge of advertising a home for sale and maintaining its marketability generally discourages people from doing so over the winter.
• Although August has been noticeably wetter than usual, the drop in new listings has also been influenced by seller mood.
• It is hard to buy a new home right now, especially if you are selling, and sellers sometimes want to buy as well.
• Some sellers are beginning to market their properties with the stipulation that buyers must first purchase a suitable property.
• Due to a notable mismatch between demand and new listings, homes are selling very quickly, and the number of current listings is rapidly declining.
• There is some good news. We anticipate more new listings as the weather warms up, as many members report sellers preparing to list in the spring.

This article covers the reasons for the decline in active listings, the implications for Perth’s buyers, sellers, and investors, and how Bargoti Real Estate is preparing its customers to deal with this situation.

What do we mean by “active listings” and why do they matter?

1. The total number of properties currently available for sale (listed on the market and not yet under contract).

2. It’s a core supply-side metric: when active listings fall, buyers have fewer choices, competition intensifies, days-on-market typically decline, and this puts upward pressure on prices — all else equal.

3. Why it matters specifically in Perth:

• Perth’s housing market behaves on its own local cycle (resource and migration-driven booms and pauses), so shifts in listings have substantial local price consequences.
• Low listings amplify the effect of any sudden uptick in demand (for example, interstate buyers or mortgage rate easing).
• For sellers, low listings can create an attractive window to get premium prices if they list at the right time and present well.

4. Local data evidence: REIWA reported Perth active listings dropped to a record low of 2,981 at the end of August 2025 — 10.4% fewer than July and 18.3% lower than a year earlier. REIWA’s leadership explicitly pointed to low new listings over winter and ongoing strong demand as key causes.

Perth sales market

1. In August, the median price of a home sold in Perth rose 0.4% to $800,000. This was a 14.3% increase over the same period in 2024.

2. Additionally, the median unit sale price rose 0.5% to $552,500 over the month. This was a 17.8% increase over the previous year.

3. Palmyra (up 2.8% to $1,100,000), Stirling (up 1.9% to $1,350,000), Applecross (up 1.3% to $2,765,000), Jindalee (up 1.3% to $886,000), and Aveley (up 1.2% to $759,000) were the suburbs with the most significant increases in home prices in August.

4. Among the top achievers were Kalamunda, Waikiki, Bayswater, Wellard, and Mindarie, all of which saw growth of at least 0.8% during the month.

Time on market

1. August saw a median of 10 days for house sales in Perth, which was two days quicker than July but the same as a year earlier.

2. Units sold in a median of nine days, which is one day quicker than August 2024 and three days faster than July.

3. The Fear of Missing Out (FOMO) that was prevalent in the first half of 2024 has returned amid fierce competition for homes and a drop in new listings.

4. The time it takes to sell a property has therefore decreased significantly, returning to the numbers from the same period last year.

5. The fastest-selling suburbs for homes in August 2025 were Quinns Rocks, Parmelia, Melville, and Butler (six days); Treeby, Mirrabooka, Hammond Park, and Alkimos (five days); and Brabham (four days)

Perth rental market

1. In August, the median weekly rent for a home in Perth stayed at $680. Compared with the same period last year, this was 4.6% higher.

2. On the other hand, the median weekly rent for homes rose 2.2% to $700 during the course of the month. This represented a 7.7% increase over August 2024.

Although it was 4.6% higher than a year earlier, the median weekly rent for flats remained constant at $650.

3. In the past, we have observed some price increases in the latter half of the year. This usually indicates that rental terms are getting more stringent as Christmas approaches.

4. However, we’re not witnessing a widespread price increase or a return to the circumstances of prior years; in fact, many of our members say they often advise against, or at most accept, modest price increases for new leases or lease renewals.

5. Additional leases in marginally higher price ranges are reflected in this month’s increase. Earlier this year, we witnessed a similar phenomenon, and the median fell the month after.

6. Claremont (up 8.7% to $815), Doubleview (up 6.7% to $800), Maylands (up 6.2% to $600), Applecross (up 6.1% to $950), and Subiaco (up 6% to $795) were the suburbs with the most significant increases in median weekly dwelling rent prices in August 2025.

7. By the end of August, there were 2,261 rental homes listed on www.reiwa.com. This was 3.1% higher than the same period last year, but 0.1% lower than July.

August saw a median of 16 days for home leases, which is one day quicker than July and three days quicker than a year ago.

The short list of root causes (an executive view)

1. Many homeowners delay listing because they fear not finding a suitable replacement property, or they wait for seasonal selling windows. REIWA pointed to unusually low new listings entering the market over winter 2025.

2. Perth has attracted interstate buyer interest in recent years, tightening competition. National and local reporting show demand from East Coast investors and broader buyer interest supporting prices.

3. When properties sell quickly, inventory turns over at a lower rate unless new listings replace them. REIWA reported record-fast sale times (e.g., units selling in 9 days in Sept 2025), which compounds supply tightness.

4. Sellers often delay listing until they secure their next home or until they perceive the market peaking. In a market where buyers are aggressive, many sellers choose to wait rather than risk being in a chain without options.

5. Interest rate trends, first-home buyer support schemes, and interstate migration flows can boost demand and discourage sellers. For example, policy changes that make entry cheaper can increase buyer numbers without an immediate supply response. Media coverage of policy changes and affordability headlines shows how such factors interact with supply.

6. Although Perth has seen new-build activity, new supply often targets price points or locations where buyer demand is lowest, leaving a shortfall in tradable, ready-to-occupy stock.

7. Winter and early spring listing patterns, combined with sellers’ desire to avoid home-showing fatigue or to time for school years, can produce seasonal dips in listings that — when combined with a high-demand period — cause temporary record lows.

8. Each of these forces interacts: for example, low new listings + sustained demand + quick sale times = a rapid fall in active stock, which then feeds buyer urgency and price growth, which in turn changes seller behaviour (either listing to capture the gain or delaying to avoid buying at the same heightened price).

The Perth specifics: why this cycle looks different (local context)

1. Perth has been an attractor for east-coast capital in recent years — buyers seeking relative affordability, lifestyle, or investment opportunity. Reports noted growing East Coast investor interest, helping fuel a Perth price boom. This amplifies demand beyond local population growth, especially in well-located suburbs.

2. Western Australia’s resources-driven economy has income and employment effects that flow into housing demand. While Perth isn’t solely tied to resources, the state’s labour market performance affects local buyer confidence and the ability to service loans, thereby increasing effective demand.

3. REIWA’s release (end August 2025) flagged active listings at 2,981, down 10.4% from July and 18.3% year-on-year — a concrete local measure of record low stock. Local agencies’ newsletters and local data trackers (market update posts) echoed this theme in September–October 2025.

4. CoreLogic and REIWA data show Perth’s auction activity is modest but efficient, while days-on-market for some segments (units) fell to single digits. Faster clearance and short marketing campaigns mean homes move quickly off the market, intensifying apparent scarcity.

Market mechanics: supply, demand and feedback loops

To understand the record-low number of active listings, consider the following four interrelated mechanics:

• Active listings are calculated by subtracting sales/withdrawals (outflow) from new listings (inflow). Inventory decreases if inflow decreases and outflow remains high.
• Customers respond sooner or place more aggressive bids when they expect prices to rise, thereby reducing marketing time and boosting sales. This further underscores the customer’s urgency.
• There are fewer new listings because homeowners who have to sell and buy at the same time would either buy their next house first or avoid listing out of concern that they would be priced out.
• When lenders limit credit, fewer buyers are found, which results in more listings; on the other hand, when credit is loosened or support programs are implemented, more customers are added without a prompt reaction from new suppliers.

Positive feedback loops are created by these mechanisms: low listings lead to competition, which raises prices; sellers postpone listing or only list to upscale; and low listings stay low.

Who’s winning and who’s losing in this environment?

1. Winners

• Current sellers who time the market and present well: higher sale prices and multiple-offer situations.
• Landlords in high-demand rental areas can see stronger rent growth and lower vacancy rates.
• Investors with cash who can act quickly and secure off-market opportunities or properties in high-demand suburbs.

2. Losers / challenged

• First-home buyers face affordability challenges and fierce competition.
• Buyers reliant on finance approval or long approval chains can lose out to cash or more agile bidders.
• People who need to sell and then buy locally (within the same tight suburb) can struggle to coordinate transactions.
• Buyers with narrow price bands or location constraints have fewer options.

Evidence in transactions: examples from headlines and narratives

1. Extreme outcomes, such as significantly deteriorated or dilapidated buildings drawing large over-asking bids as buyers  vie for any available supply, have been reported locally.  

2. National news highlighted instances of Perth real estate selling for significantly more than the asking price, demonstrating how scarcity is driving atypical results.

3. Sales quantities occasionally vary from week to week. Still, a recurring pattern of sales exceeding available listings, with marketing times shortening, is evident in REIWA’s weekly snapshots and market updates from October 2025.

Why sellers are reluctant to list: A deeper look at motivations

1. Fear of “selling up” without an upgrade in place — sellers unwilling to be forced into a purchase at higher prices.  

2. Psychological fatigue from home staging and inspections — with intense competition, sellers need their home to look perfect for multiple inspections and bidders. That can deter those who would rather avoid the disruption.

3. Tax and capital gains planning — some owners may time sales around tax events, retirement planning or other personal timing.

4. Low trust in the ability to find a home they like — if sellers believe they’ll be outbid on their next purchase, they’ll delay listing until they’re confident.

5. Rent vs. sell calculus — some homeowners may prefer renting rather than selling in a tight market where replacement is difficult.

The role of off-market sales, pre-market and private networks

1. Agents and networks trade off-market opportunities with known buyers (investors, local buyer databases, interstate networks) in tight markets, meaning many listings never reach public portals.

2. This does not indicate a decrease in transactional activity, but it does result in fewer active listings, as indicated by public numbers. In low-listing areas, Bargoti Real Estate, like many other local firms, uses off-market networks to connect sellers with ready buyers.

3. When off-market trading is substantial, measured public active listings understate the actual available supply; at the same time, off-market sales make it more difficult for regular buyers to acquire prospects.

Consequences for price growth, rents and affordability

1. Median prices typically increase when supply is limited and demand is strong. In recent years, Perth’s capital city market has been among the best-performing. Both local and national news revealed Perth’s impressive performance among capitals and significant gains in home prices.

2. Although rental markets respond more slowly to build completions and tenant turnover, vacancy tightness can raise rents.

3. Due to fierce competition and rising entry costs, first-time homebuyers and middle-class households may have to make concessions (such as smaller blocks or farther suburbs) or postpone purchases.

Practical strategies for buyers in Perth

If you’re buying in Perth during low-listings conditions, these tactics help:

• Don’t go to an auction or bid without pre-approval for finance. Agents and sellers prioritise qualified buyers.
• They often know of off-market or about-to-be-listed properties and can access private vendor networks.
• Early viewings, quick offers and clear conditions help (but don’t overpay out of fear).
• Look slightly outside preferred suburbs, or consider different property types (e.g., units vs houses) to expand your choices.
• Flexible settlement dates, unconditional contracts (with informed legal counsel), or bridging finance can make offers more attractive.
• Overpaying for a poor asset isn’t a long-term win.In heated markets, diligence on condition, zoning, and future supply is crucial.

Bargoti Real Estate specialises in matching buyer profiles with local opportunity flows and can help buyers anticipate new listings and structure competitive offers in Perth’s market.

Practical strategies for sellers in Perth

If you’re selling, low listings are an opportunity — but to capture maximum value, follow these steps:

• With competition tight, photos and presentations attract more bidders and higher prices.
• The period of marketing, auction vs private treaty, and agent network selection matters more than ever.
• In a tight market, you want price discovery to function: set realistic expectations while encouraging competition.
• Agent databases, investor contacts and interstate buyer lists can create a pre-qualified buyer pool.
• If you need to buy another home, work with Bargoti to sequence sales and purchases or explore temporary rental solutions to avoid being chain-constrained.
• Sometimes, private marketing to selected buyers yields premium outcomes with less disruption.

Investors & landlords: what to consider

• Investors must balance possible capital gains against declining rental returns (if rents lag) in a market where scarcity increases capital growth.
• Well-located assets with strong rental demand and low vacancy risk are preferred when supply is limited.

Consider the likely demand and exit strategies if you decide to sell later.

In a market with few listings, Bargoti Real Estate’s property management and investor advising services can help with rent setting, tenant retention, and portfolio repositioning.

What this means for new housing supply and policy

1. To address long-term scarcity, supply must be increased where demand exists. This can be achieved through targeted development programs, incentives that match household needs with housing types, and approvals.

2. Policy responses, such as infrastructure-led growth, state-level housing initiatives, and incentives for affordable supply, will impact medium-term listings and affordability.

3. Despite being a market issue, supply limits have complicated origins and political trade-offs, as noted by national and local critics. Coordinated planning, not band-aid solutions, is needed to address them.

Scenario planning: three likely short-to-medium-term paths

1. Sustained low listings + steady demand (base case): Price growth continues at a moderate-to-strong pace. Sellers capture reasonable premiums; affordability remains stressed; rental growth persists.

2. Demand shock eases (e.g., credit tightening or a rate spike): Sales cool, some listings re-enter the market as sellers capitulate, and prices stabilize or correct modestly.

3. Supply response over 12–36 months: Accelerated approvals and completions (including infill development) alleviate shortages; listings and affordability improve gradually; price growth slows.

4. Which path unfolds depends on national monetary policy, migration flows, investor appetite, and local supply-side interventions. CoreLogic and REIWA data alongside local market updates are consistent with a near-term continuation of tight supply and active markets in Perth.

Tactical checklist (one-pagers for each audience)

1. Buyers (urgent checklist)

• Get pre-approval; gather proof of funds.
• Set a realistic top price and stick to it.
• Use a buyer’s agent or Bargoti contact to access off-market leads.
• Inspect early and bring decisive offers.

2. Sellers (value-max checklist)

• Professional photography & staging.
• Choose an agent with a strong local database (Bargoti recommended).
• Decide between auction and private treaty based on the suburb’s dynamics.
• Plan settlement and replacement property strategy.

3. Investors

• Stress-test yields at slightly higher interest rates.
• Consider long-term rental prospects, not short-term capital flips.
• Diversify across suburbs and types to mitigate local supply shocks.

Common myths — and what the data says

1. Myth: “Listings are low because nobody wants to move.”

Reality: Listing flows are low for multiple reasons — chain risk, seasonal timing, and seller strategy. Data (REIWA) shows new listings dropped during winter 2025.

2. Myth: “High prices mean the market will crash soon.”

Reality: Price growth driven by absolute scarcity, tight labour markets, and interstate demand can be persistent. A crash typically requires a broad demand shock (credit tightening, unemployment rise), not just high prices.

3. Myth: “If you wait, supply will flood back.”

Reality: Supply responses take time (approvals, build completion). Waiting may mean paying more later if demand persists.

Longer-term market implications for Perth

1. Urban infill and density will become more politically and economically relevant as planners attempt to deliver supply into demand hotspots.

2. Affordability pressures could lead to policy changes (support for first-home buyers, targeted social housing programs).

3. Investor behaviour may shift: some may chase yield in secondary suburbs while others target capital growth corridors.

Final recommendations

1. If you’re a buyer: prepare, pre-approve, and widen your search. Use local agents with strong networks (Bargoti Real Estate can help).

2. If you’re a seller: capitalise on the scarcity by prepping your home and picking an agent who can run a competitive campaign.

3. If you’re an investor, focus on fundamentals: especially rental demand and long-term yield—and avoid overpaying simply because of scarcity.

4.If you’re a policymaker or planner, accelerate the delivery of supply solutions targeted to the neighbourhoods where buyers are actively seeking homes.

Conclusion

In conclusion, Perth’s record-low active property listings reflect a perfect storm of strong buyer demand, limited new housing supply, and seller hesitation, creating a fiercely competitive market. For buyers, the shortage means acting fast, being well-prepared, and leveraging trusted local expertise. For sellers, it presents a rare opportunity to achieve exceptional returns when guided strategically.

As Bargoti Real Estate continues to navigate this dynamic landscape, our focus remains on empowering clients with data-driven insights, tailored advice, and seamless execution — ensuring that whether you’re buying, selling, or investing, you stay one step ahead in Perth’s evolving property market.

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