Perth's property market has delivered some of the strongest price growth in the country over the past five years, prompting many to question whether the boom has run its course. According to buyer's agent Simon Deering (pictured) of You & Me Personalised Property, that question misreads the cycle Perth has actually been through.
Deering argues that the city's recent gains need to be weighed against a prolonged downturn that he dates from around 2014 to 2020 — a period during which, according to Cotality, values fell 15.3% from peak to trough over 61 months.
"People see the growth since COVID and assume Perth must be exhausted," he said. "But from around 2014-2020, after the last mining boom, Perth went through a prolonged downturn. In many areas, prices have only recently recovered from that period."
Perth's affordability position relative to other capitals remains striking. The city's median dwelling value sits at $1,039,949 as of April — well below Sydney's $1,292,157 and even Brisbane's $1,116,180, despite Perth recording 26% annual growth, the strongest of any capital city. Gross rental yields of 3.6% also remain ahead of both Sydney (3.1%) and Brisbane (3.3%).
Underpinning those figures is a persistent supply shortfall. Western Australia completed 22,123 dwellings in the year to September 2025, against population growth of 65,800 people over the same period.
"The market can't really change until supply changes," Deering said. "And supply won't suddenly increase as the building industry is still struggling to keep up. We're simply not building enough homes to match demand."
Active listings offer a real-time picture of that pressure: there were just 5,088 properties for sale in Perth in the week ending 24 May, according to REIWA — with the institute's president cautioning it was too soon to call a peak.
The supply picture is reinforced by WA's broader economic conditions.
The state recorded a $3.5 billion operating surplus in 2025–26 — its eighth consecutive surplus — alongside a record $44.3 billion infrastructure commitment over the next four years. State Final Demand has grown 27% over five years, and unemployment remains low.
Deering said that economic backdrop is increasingly attracting offshore capital, with buyers from Singapore, Hong Kong, and Malaysia taking a more data-driven approach to Australian property and putting Perth on their radar alongside the traditional eastern city focus.
"The market won't change until supply catches up with demand," he said. "And that's not something that happens overnight."
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