Perth's Property Market Faces a Critical Listings Logjam
In a recent analysis, the availability of properties for purchase has been highlighted as a pivotal factor shaping Perth's real estate landscape as we move into 2026. Over the past six months, new listings have remained significantly below long-term averages, creating what industry experts describe as a listings logjam in Perth's property market. This shortage is driven by a complex interplay of factors that are deterring potential sellers and constraining supply.
Seller Hesitancy and Housing Insecurity
Many homeowners in Perth express a desire to sell their properties, but they are held back by practical concerns. With sales occurring rapidly and the overall availability of homes remaining relatively low, sellers are increasingly worried about securing alternative accommodation. The fear of being rushed into purchasing a new property, coupled with the challenges of finding short-term rentals—especially for those needing to stay in specific areas for work or schooling—has made many hesitant to list their homes.
Financial Barriers Discouraging Moves
Financial considerations play a substantial role in this market stagnation. While current homeowners might achieve excellent prices for their properties, upgrading to a new home often means extending their mortgage by several hundred thousand dollars. Adding to this burden is the significant cost of stamp duty, which amounts to $42,615.50 for a $1 million home. This upfront expense is a major deterrent for many, making the financial leap of selling and buying anew less appealing.
Strategies for Potential Sellers
For those contemplating a sale, REIWA recommends consulting with a professional agent to explore options that can ease the process. Potential strategies include setting a longer settlement period, negotiating a rent-back arrangement to allow more time to find a new home, or listing the property conditionally upon securing another residence first. These approaches can help mitigate the uncertainties that currently plague sellers in Perth's tight market.
Inefficiencies in the Established Homes Market
The established homes market is also contributing to the listings shortage. Many potential downsizers are living in family-sized homes that no longer suit their needs, yet these properties are highly sought after by buyers. A 2025 reiwa.com Housing Issues Survey revealed that 63 per cent of respondents identified stamp duty as a barrier to downsizing. The prospect of paying thousands in transaction costs often leads these homeowners to stay put, further reducing available listings.
Proposed Solutions to Encourage Mobility
In response to these challenges, REIWA has submitted a pre-budget proposal for the 2026-27 State Budget, advocating for a $10,000 stamp duty concession for eligible downsizers. This measure aims to stimulate much-needed movement within the market. Additionally, feedback from downsizers indicates a preference for staying in their local areas, but a lack of suitable medium-density options—such as villas and townhouses—is a significant hurdle. REIWA calls for increased State Government support for medium-density infill developments, including extending the Infrastructure Development Fund to cover such projects.
As Perth's property market navigates this listings logjam, addressing these financial and practical barriers will be crucial to unlocking supply and fostering a more dynamic real estate environment.
