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According to data from the Real Estate Institute of Western Australia (REIWA), listings for sale in the Western Australian capital fell to a record low of 1,881 at the end of December.
This figure was 35.5 per cent lower than in November and 57.2 per cent lower than in December 2024.
At the same time, demand has continued to strengthen. Annual house price growth in Perth reached 15.9 per cent in 2025, the second-highest among the capital cities, behind Darwin at 18.9 per cent, according to property analytics company Cotality.
In December, prices rose 1.9 per cent month on month and 7.6 per cent quarter on quarter, the strongest result of any capital city.
By the end of 2025, Perth’s median house price had risen to $940,635.
The median sale time for houses and units was just nine days in December, seven days faster than a year earlier.
REIWA president Suzanne Brown said that while a seasonal slowdown in listings is typical during the holiday period, the current conditions were unprecedented.
“At this time of year, the number of new listings slows – people are busy with the festive season, or go away, and put their plans to sell on hold – and active listings decline as a result,” she said.
“However, new listings have been significantly below long-term averages in the last six months. New listings in winter were 11.5 per cent below the 10-year average, with new listings in spring 15 per cent below the 10-year average.
“By comparison, demand remained extremely high. We saw FOMO return to the market, with our members reporting strong competition for homes, offers well over the asking price in many cases, and homes selling in record time frames.”
A cycle of supply constraint
Despite conditions favouring sellers, Brown said the market was caught in a self-reinforcing cycle, with a lack of onward housing discouraging people from listing their homes and further constraining supply.
“Our members report there is a logjam in the market,” said Brown.
“People want to sell, but with the speed of sales and relatively low availability of homes, they are concerned about finding somewhere to live.
“They don’t want to be rushed into buying a new home, and it still remains challenging to find a short-term rental, especially if you need to remain in a certain area for work or schooling reasons.”
Broker Daily has also reported on how the 5 per cent Deposit Scheme has been adding demand at the lower end of Australia’s housing market.
While price growth was strong across Perth’s housing market, it was particularly pronounced at lower price points. For homes eligible under the government’s newly extended 5 per cent Deposit Scheme, prices rose by 8.4 per cent in the December quarter, compared with 7.3 per cent for houses above Perth’s $850,000 price cap.
REIWA also reported that strong growth in other dwelling types remained a continuing trend, as they can provide more affordable alternatives to houses. In Perth, the median sale price in the September quarter increased by 2.7 per cent for houses, compared with 5.9 per cent for other dwellings.
“Villas, home units, and apartments are generally a more affordable alternative to houses for people looking to enter the market, particularly close to the city,” Brown added.
“Competition for these types of homes has increased and put greater upward pressure on prices.”
Help to Buy scheme launches
These market conditions could impact the Help to Buy scheme, which has recently launched in Western Australia.
While around 1,100 low- to middle-income earners in Western Australia are expected to benefit, brokers have warned of a number of potential pitfalls.
Speaking to Broker Daily, Robert Flynn, director and finance consultant at Vorteil Financial Group, said the initiative could further exacerbate these supply constraints.
He said: “While schemes like this are well-intentioned and aimed at helping people into the market, they can have the unintended consequence of pushing prices higher and making affordability challenges worse overall. I’d like to see more focus on what can be done on the supply side to address the underlying problem.
“As a result, the scheme feels like it has rolled out too late to benefit many of the people who need it most.”
[Related: Cost of housing remains Australians’ biggest financial worry]