Compared to June last year, investor loans with Loan Market were down 13 per cent in WA, and first home buyer loans were down a massive 30.5 per cent.
New figures reveal good and bad news for Perth homebuyers, with prices dipping slightly in June but Perth still ranking as the 12th least affordable housing market in the world.
Perth moved from 14th to 12th in the 2026 edition of the Demographia Housing Affordability Index.
Limnios Property Group managing director James Limnios said it was “sobering” reading.
“Perth achieved a median multiple of 8.0, meaning the median house price is now equivalent to eight years of median household income,” he said.
“Overall, Perth now sits just behind London in terms of global housing unaffordability and is also ahead of many major North American cities.
Perth has learned where it stands globally in terms of property affordability. Credit: Rafael Ben-Ari/Rafael Ben-Ari – stock.adobe.com
“This is despite Western Australia recording some of the highest average earnings in Australia.”
Cotality’s home value index found a slump in property prices has spread from the Eastern capitals, with Perth values down 0.3 per cent in the July quarter — to a median of $1.029 million.
But Perth is still outperforming the national average that fell 0.7 per cent.
Perth real estate agent Tom Carlin said there were two different buyer types — those who need a house now and those who were only thinking about moving or investing.
He said the negative sentiment was a result of the latter group but there were still positives in the market.
“Perth is still one of the cheapest States to buy in and the most affordable compared to the Eastern States,” Mr Carlin said.
“We saw people getting carried away with the boom that was and thinking ‘we’re going to make all this money from it’.”
“I think we’re just seeing a stabilisation of the market.”
Mr Carlin blamed the Albanese Government’s changes to capital gains tax for the wobble.
“But rents are still sky high, I think people still see massive opportunity in Perth,” Mr Carlin said.
“We have so many prospects going forwards in terms of all the development in Perth and the amount of people coming here.”
He said Perth’s outer suburbs remained the best options to get a foot in the door with Ellenbrook and Mandurah offering affordable homes and convenient public transport into the city.
According to Cotality’s figures, Serpentine-Jarrahdale recorded the biggest 12-month increase in prices, up 28 per cent to $976,576, followed by Rockingham and Armadale.
Regional WA dwelling values fell 0.9 per cent in July.
