Summary
Perth’s property market continues to break records and defy expectations. But what does that mean if you’re looking to buy, refinance, or invest right now?
In Episode 349 of the Perth Property Show, Strategic Mortgages’ Trent Fleskens caught up with Brendon Ptolomey, Managing Director of Heron Todd White, to unpack the current state of the WA market. From low stock levels to growing buyer pressure and a stabilising construction sector, there are clear implications for anyone thinking about finance.
Here’s a breakdown of what you need to know if you’re planning your next move in the property or mortgage space.
Podcast Episode
Episode Transcript
Stock on Market Is Still at Record Lows
Brendon opened with a clear point. The Perth market is extremely undersupplied. Listing volumes have dropped back to historic lows, with most sales driven by major life events like death, divorce, or downsizing. For many agents, properties are being sold off-market before hitting public listings, and buyers are often missing out unless they’re already on internal call lists.
Despite high demand, transaction volumes are starting to fall slightly, simply because buyers have fewer options. Most properties that do come up are attracting strong interest, especially from local buyers.
For buyers, this means two things: competition is high, and you need to be ready to act fast. For mortgage holders and potential upgraders, this tight market is also limiting mobility. Many people who want to sell and buy are finding they have nowhere to go.
Buyer Sentiment and FOMO Are Rising Again
Trent and Brendon both noted that fear of missing out has returned. With Perth’s median price now in the $750,000 to $850,000 range, many would-be buyers feel like they are falling behind.
Despite rising prices, confidence is improving thanks to more stability in interest rates. Buyers have adjusted their expectations and many are optimistic about the next 12 months, particularly with the Reserve Bank signalling that rate cuts are on the horizon.
Mortgage confidence is back. Many borrowers are now looking at their current loan and asking whether refinancing or accessing equity is the right move for the year ahead.
Investors Are Active, but Yield Is Not Everything
Investor activity is shifting. While suburbs like Morley, Warwick and Baldivis are still attractive for their rental yields, Brendon stressed the importance of focusing on capital growth.
Chasing yield alone is often a short-term strategy. A property that offers high rental return but low long-term demand may end up underperforming. Instead, investors should look for properties that offer strong emotional appeal to future buyers or tenants, especially in areas with limited land supply or unique character.
Trent and Brendon agreed that thoughtful investors will strike a balance. They will consider both yield and the potential for value growth, not just short-term cash flow.
Construction Costs Are Flattening, but Risks Remain
After several years of rising construction costs and builder uncertainty, Brendon confirmed that things are finally starting to level out. Larger builders are now more available, and many are offering realistic build timelines of 10 to 12 months.
However, the real challenge is now land. Power and water infrastructure delays are stalling titled land releases across WA. According to Trent, developers are ready, builders are ready, and demand is strong, but the hold-up sits with the utilities.
Both Trent and Brendon warned buyers to budget carefully. Construction prices may be stabilising, but finishing costs like landscaping, air conditioning, and internal fit-outs remain high. These expenses are often overlooked during pre-approval or loan applications.
Their advice: get multiple quotes, confirm what is included in your contract, and choose a builder with financial strength and proven delivery capability.
Apartments Are Quietly Outperforming at the Premium End
While detached homes dominate most conversations, Brendon shared data showing strong capital gains in high-end apartment projects. Buyers who secured off-the-plan units in premium developments like The Grove or Riviere have seen value increases ranging from 7 percent to over 80 percent.
These gains are being driven by limited supply, quality locations, and rising construction costs that make replacement pricing unfeasible. Downsizers are also prepared to pay premium prices for well-located, spacious, low-maintenance apartments, especially when the sale of their home provides the funds.
There are still risks in the apartment market, particularly in oversupplied or investor-heavy complexes, but quality product in tightly held areas continues to outperform.
What the Economic Outlook Means for Mortgages
Looking ahead, both Trent and Brendon shared a cautiously optimistic view of the Perth economy. WA remains supported by mining investment, infrastructure spending, low unemployment, and consistent population growth.
The biggest change ahead will likely come from the Reserve Bank. With the market pricing in cuts to the cash rate, confidence is expected to increase further. As borrowing becomes more affordable, competition for property may rise again, putting more pressure on buyers and more value into homes.
Trent made the point that Perth could be heading toward another year of double-digit price growth, following on from the 20 percent surge seen in 2023. If interest rates begin to fall, and supply remains constrained, there is little stopping 2024 from being another boom year in hindsight.
Final Takeaways
- Stock on market remains extremely low, and off-market sales are becoming more common.
- Buyer demand is strong and supported by improving mortgage confidence.
- Investors are active but should focus on capital growth, not just yield.
- Building is stabilising, but land supply and infrastructure delays remain a challenge.
- Apartments are quietly performing well at the high end of the market.
- The broader economic outlook for WA remains strong, with further growth expected into 2025.
