Are Investors Still Buying Properties or Pressing Pause?

Perth Property Market Update: Are Investors Still Buying or Pressing Pause?

Over the past few years, Perth has been one of Australia's strongest property markets, delivering impressive capital growth and strong rental returns. However, many buyers and investors are now asking the same question:

Has the Perth property market started to slow down, and are investors still buying?

The short answer is yes, investors are still active, but the market has changed significantly from the highly competitive conditions we saw during 2023 to 2025.

The Perth Market Is Transitioning

Perth remains a strong property market by national standards, supported by population growth, a robust economy, and ongoing housing supply shortages. However, the pace of growth has moderated.

Buyers are now seeing:

• More properties available for sale.
• Increased choice compared to previous years.
• Fewer multiple-offer situations.
• More time to conduct due diligence before purchasing.

This is generally good news for buyers who were finding it difficult to compete during the peak of the market.

Are Investors Still Buying?

Absolutely.

Investors continue to view Perth favourably because it offers several advantages that are becoming harder to find in other major Australian cities:

Strong Rental Returns

Perth continues to deliver attractive rental yields relative to Sydney and Melbourne. For many investors, strong rental income helps offset higher interest rates and holding costs.

Ongoing Rental Demand

Population growth, interstate migration, and limited housing supply continue to support rental demand throughout the Perth metropolitan area.

Long-Term Growth Potential

While rapid price growth may not continue at the same pace, many investors remain confident in Perth's long-term prospects due to Western Australia's economic strength and infrastructure investment.

A More Selective Market

The biggest change is that investors are becoming more selective.

Rather than purchasing almost any property and expecting strong growth, investors are focusing on assets with solid fundamentals, including:

• Established suburbs with strong owner-occupier appeal.
• Properties close to transport links.
• Areas benefiting from infrastructure investment.
• Well-located townhouses and units.
• Properties with strong rental demand.

The emphasis has shifted from chasing quick capital growth to building sustainable long-term wealth.

Is the Market Slowing Down?

The data suggests Perth is moving into a more balanced phase rather than experiencing a downturn.

During the boom, property values were supported by:

• Extremely low housing supply.
• Tight rental markets.
• Strong population growth.
• High buyer competition.

Today, supply has improved, affordability pressures are increasing, and buyers are naturally becoming more cautious.

This doesn't mean opportunities have disappeared. It simply means buyers need to be more strategic in their property selection.

What This Means for Buyers

For owner-occupiers, today's market may offer greater negotiating power and more choice than we have seen in recent years.

For investors, the focus should be on:

• Cash flow.
• Long-term location fundamentals.
• Rental demand.
• Asset quality.

The days of buying solely based on market momentum are likely behind us.

Our View

• The Perth market appears to be entering a period of normalisation rather than a period of significant decline.
• Investors have not disappeared. Instead, they are becoming more disciplined and selective.
• For buyers with a long-term strategy, Perth continues to offer attractive opportunities. The key is finding the right property, in the right location, with the right finance structure to support your goals.

Need Advice Before You Buy?

Whether you're purchasing your first home, upgrading, or building an investment portfolio, understanding your borrowing capacity and finance options is an important first step.

At Em Bee Finance, we help clients navigate changing market conditions and secure lending solutions tailored to their individual goals.

Contact us today for an obligation-free discussion about your property plans and borrowing options. 0401 063 137

Disclaimer: This article provides general information only and should not be considered financial or investment advice. Property markets can change, and individual circumstances should always be considered before making financial decisions.