Growing challenges in the building industry, created by the war in the Middle East, are a concern for the property market, according to REIWA.
"Rising oil prices are already putting upward pressure on building costs and are also causing delays in the supply of materials," REIWA Deputy President Rob Mandanici said.
"COVID showed us what can happen when there are serious challenges in the building industry - more people look to the established market for homes to buy or rent. This increases demand and puts upward pressure on prices. The effect is magnified when there are supply constraints in the established market.
"We are particularly concerned for the rental market and tenants. There was a mass exodus of investors during the pandemic. Our modelling estimates nearly 20,000 rental properties were removed from the market. This saw rent prices soar and vacancy rates plummet across the state.
"The market has improved but supply remains below the peak recorded in early 2021 and WA's population growth is still strong.
"People moving to our state often rent before they buy or build, and people rent while building. Delays in building timeframes and rising costs will keep more people in the rental market longer but without a corresponding increase in supply.
"Compounding our concerns are talks about changes to capital gains tax, negative gearing and tenancy legislation.
"We know investors are sensitive to change. We know they will leave the market if the legislative environment does not support investment. When we add rising interest rates and a market that is very liquid, we are very worried about the impact on rental supply, rent prices and tenants.
"Now is not the time to be making changes to taxation policy or tenancy legislation. While potentially having good intentions, governments are likely to harm the people they are aiming to help."
Mr Mandanici said challenges in the building industry were also likely to maintain the pressure on the sales market, where prices continued to rise and days on market were very short.
"Potentially a few people who do not need to buy or sell immediately may decide to defer buying or selling for a time," he said.
"However, there will always be someone who needs to sell or buy, and problems in the delivery of new homes will maintain the focus on established homes."
Perth rental market
The median dwelling rent rose 1.4 per cent in March to $720 per week. This was 5.9 per cent higher than March 2025.
The median weekly rent for houses increased 2.8 per cent to $740 and was 6.5 per cent higher than a year ago.
However, the median weekly rent for units declined 0.7 per cent to $695. This was 6.9 per cent higher than March 2025.
According to reiwa.com, the suburbs that saw the most growth in their median weekly house rent price in March were Southern River (up 5.1 per cent to $820), Rockingham (up 5.0 per cent to $630), Gosnells (up 4.0 per cent to $650), Scarborough (up 3.9 per cent to $1,000), and Seville Grove (up 3.8 per cent to $680).
The suburbs that saw the most growth in their median weekly unit rent price were South Perth (up 7.7 per cent to $700), Scarborough (up 6.0 per cent to $795), Subiaco (up 4.0 per cent to $780), Claremont (up 3.3 per cent to $775), and Innaloo (up 3.3 per cent to $775).
Listings for rent
There were 1,870 properties available for rent on reiwa.com at the end of March. This was 0.4 per cent lower than February and 11.1 per cent lower than the same time in 2025.
"Active listings have decreased each month this year and the vacancy rate tightened slightly in February," Mr Mandanici said.
"While not overly alarming at this point, these figures bear watching in the face of the increasing issues in the building industry and possible changes to taxation policy in the upcoming Federal budget."
Median leasing times
Homes leased in a median of 15 days during March, one day faster than February, but unchanged from a year ago.
reiwa.com data showed the suburbs recording the fastest median leasing times were Hilbert (eight days); Gosnells, Clarkson, Alkimos, and East Victoria Park (10 days); Dianella, Banksia Grove, and Maddington (11 days), and Wembley and Victoria Park (12 days).
Perth sales market
Perth property prices rose again in March.
The median house sale price* rose 1.1 per cent over the month to $880,000. This was 13.5 per cent higher year-on-year.
The median unit sale price* increased 1.6 per cent over the month and 20.0 per cent over the year to $630,000.
The suburbs that saw the most house price growth in March were Jindalee (up 3.8 per cent to $1,075,000), Bayswater (up 3.3 per cent to $1,160,000), Brabham (up 2.6 per cent to $800,000), Craigie (up 2.3 per cent to $926,000), and Sorrento (up 2.1 per cent to $1,950,000).
Madora Bay, Wellard, Kalamunda, Landsdale and Mandurah were also among the top performers, recording growth of 1.6 per cent or more over the month.
The suburbs that saw the most unit price growth were North Perth (up 7.0 per cent to $712,500), Rivervale (up 2.6 per cent to $595,000), Fremantle (up 2.1 per cent to $725,000), West Perth (up 2.1 per cent to $631,500), and Burswood (up 1.4 per cent to $705,000).
Maylands, Wembley, Midland, Perth and Tuart Hill were also among the top performers, recording growth of 0.8 per cent or more over the month.
Listings for sale
According to reiwa.com data, active listings** across Perth rose to 3,394 at the end of March. This was 23.6 per cent higher than February, but 31.3 per cent lower than March 2025.
"The increase in active listings reflects an increase in new listings over the month," Mr Mandanici said.
"This is typical for this time of year. We can expect to see new listings decline in April due to the school holidays and number of public holidays."
Time on market
The time to sell a home increased marginally in March.
Houses sold in a median of nine days, one day slower than February and five days faster than March 2025.
Units sold in a median of eight days, one day slower than February and six days faster than a year ago.
Mr Mandanici said the slight slowdown reflected the increase in new listings in March.
"This has given buyers some more choice and a little more breathing room to make a decision," he said.
"Some members are also reporting buyer hesitancy created by the conflict in the Middle East, fuel prices, inflation and interest rates."
According to reiwa.com data, the fastest selling suburbs for houses in March were Yokine (two days); Woodvale and Erskine (five days); and Wellard, Tapping, Port Kennedy, Palmyra, Nollamara, Hocking, and Cooloongup (six days).
The fastest selling suburbs for units were Cockburn Central (four days); East Perth (five days); North Perth, Nollamara, Cloverdale, and Mount Lawley (six days); and Wembley, Tuart Hill, Rivervale, and Mosman Park (seven days).
* REIWA publishes an annual median sale price based on pending and settled sales.
** Active listings - the number of properties advertised on reiwa.com at any given time. New listings - new properties listed for sale.
