Perth property market sees steepest quarterly price drop on record

According to Domain’s latest House Price Report, Perth experienced a 7.4% drop in median house prices during the September quarter, the steepest quarterly fall ever recorded for any capital city, bringing the median to $1.115 million. Unit prices also fell, down 6.5% to $659,561, marking the largest quarterly decline for apartments. Dr Nicola Powell, Domain’s chief of research and economics, linked the shift to a combination of recent interest-rate increases, new investment-property tax rules, and heightened cost-of-living pressures that have reduced borrowing capacity.

She noted that demand appears to be weakening while supply is increasing. Property specialist Mark Hay described the movement as a fundamental correction, pointing to a high number of listings and low rental vacancy rates as signs of a market adjusting after years of rapid growth.