The Price Gap Between Perth Buyers and Sellers

New research shows a continuing gap between what buyers are hoping to spend and the prices sellers are seeking, particularly for houses in premium locations.

As property market conditions change, buyers are becoming increasingly focused on value, but seller expectations have not always adjusted at the same pace.

New Domain research comparing buyer price searches with advertised property prices shows a continuing mismatch between the two. While the gap has narrowed in some areas, buyers searching for houses are often setting budgets well below current listing prices.

Perth’s premium suburbs show a significant gap

The difference is particularly noticeable at the upper end of Perth’s market.

In the Cottesloe-Claremont region, the median price being searched by buyers was $1.3 million, compared with a median listing price of $2.9 million. This represents a $1.6 million difference and was one of the largest gaps recorded among the capital city regions included in the research.

The figures do not necessarily mean individual properties are overpriced by that amount. Rather, they highlight the difference between the type and price of property buyers are searching for and the homes currently being offered for sale.

Across the broader market, buyers appear to be taking a more considered approach. With greater choice available and uncertainty around future price movements and interest rates, there is less urgency to compromise simply to secure a property.

Buyers are reconsidering property type

For buyers who do not want to compromise on location, changing the type of property they purchase is becoming another option.

Townhouses in particular show much closer alignment between buyer budgets and seller expectations. In the Bayswater-Bassendean region, for example, the median townhouse search price and median listing price were both $850,000.

Apartments and townhouses can therefore provide another way for buyers to remain within their preferred area without stretching their budget to purchase a detached house.

Pricing becomes increasingly important

For sellers, changing buyer behaviour makes an accurate understanding of the local market particularly important. Buyers with more choice can compare properties carefully and may be less willing to exceed their preferred budget than they were during stronger market conditions.

At the same time, quality properties in sought-after locations can continue to attract strong interest, reinforcing the importance of considering the individual property, its presentation, location and competition rather than relying solely on broader market trends.

As buyers and sellers adjust to changing conditions, realistic pricing and a clear understanding of local demand will play an increasingly important role in bringing the two sides together.