Soaring inflation in housing sector sees number of Perth property listings drop by 18 per cent over year

Soaring inflation in the housing sector has resulted in the number of property listings in Perth dropping by 18 per cent over the year, with fewer than 2500 houses, units and blocks currently for sale. The Real Estate Buyers Agent Association of Australia claims the drastic drop — almost double the 10 per cent national reduction over the past year — has pushed Perth into one of its worst ever housing shortages. Data from the Real Estate Institute of WA shows there are currently just 2394 listings for sale in Perth, well below the 4791 listings at this time last year. Perth’s dwindling pool of available housing — which includes 1515 houses, 536 units and 343 blocks of land — services a metropolitan population of about 2.4 million and growing. The most recent population data suggest Perth is growing by about 1100 people per week. Economist Conrad Liveris said a balanced market, where demand meets supply, would require about 13,000 homes being listed for sale at any one point in time. Mr Liveris said the shortage of listings had boosted house prices, which now sit at a median of $1 million, according to the Domain Index. House prices in more than 50 Perth suburbs have doubled over the past five years, and the boom has no end in sight. A KPMG report released this week forecasts that Perth’s housing shortage will underpin rising prices for at least another two years, with houses predicted to increase 13 per cent this year. Units are tipped to jump 12 per cent. KPMG predicts the increase will continue in 2027, with a five per cent increase for houses, and four per cent for units. Mr Liveris said the only way to end the problem was to build substantially more homes. However, Perth’s building record is currently lagging, due in part to labour shortages. Only 21,391 new homes were completed in the 2025 financial year. Just 5150 homes were completed in WA in the September quarter, which was 11 per cent down compared to the same quarter last year. It was the fewest homes built in a quarter in WA since the Albanese Government set the National Housing Accord, which, in in mid-2024, set WA’s aspirational five-year building target of 130,000. The total number of completions last year was also significantly below the State’s 2016 peak when a massive 32,451 homes were finished. And listings aren’t the only issue. REBAA President Melinda Jennison said that not only were the number of listings incredibly low, but that good quality stock was even more scarce. “We’re not just dealing with seasonal fluctuations because there is a structural shortage of listings and buyers are feeling the pressure nationwide,” Ms Jennison said.