GREATER BUSSELTON PROPERTY MARKET: READING THE ROOM Market Update · May 2026

There's no sugar-coating the current climate — but there's no panic either. The Greater Busselton residential market is navigating a more complex environment than it has in several years, shaped by three intersecting forces: a rate cycle that has pushed the RBA cash rate to 4.35%, a sweeping Federal Budget that rewrites the rules for investors, and a cautious buyer pool that is taking its time.

What's important to understand is that Busselton is not Sydney or Melbourne. The fundamentals here are different, and they matter.

WHERE THE MARKET STANDS RIGHT NOW

Busselton's median house price has climbed to around $871,000 — a remarkable 19% rise over the past year. Stock on market remains thin at under 1% and inventory sits at just over a month of supply, both indicators of a market that, despite headwinds, still has underlying demand holding it up. Homes are still selling in an average of 17 days — that is not a distressed market.

The lifestyle premium that has driven buyer interest in coastal South West WA since the pandemic hasn't evaporated. Remote and hybrid work remains a fixture for many buyers, and the draw of Busselton's coastline, community, and relative affordability compared to Perth continues to attract owner-occupiers. Demand here has always been owner-occupier led — and that insulates it from the more volatile swings seen in investor-heavy markets.

THE FEDERAL BUDGET: WHAT IT ACTUALLY MEANS LOCALLY

The 2026 Federal Budget delivered the most significant housing and tax reform in decades. From 1 July 2027, negative gearing will be limited to newly built residential properties, and the 50% capital gains tax discount will be replaced with CPI-indexed gains plus a minimum 30% tax rate. Critically, properties purchased before Budget night (12 May 2026) are grandfathered — so existing investors are protected.

For the Busselton market, the clearest impact is a potential softening of investor competition on established homes — which, in theory, opens a lane for first-home buyers. The Federal Government's $47 billion housing package, including 5% deposit schemes and a $2 billion local infrastructure fund, points in the right direction. But delivery depends on planning approvals, construction capacity, and the pace of local development — none of which move quickly in regional coastal markets.

The practical near-term read: some investors will hold rather than sell (reducing listings, not prices), others will pivot toward new builds where tax advantages remain intact, and first-home buyers should find slightly less competition — but not dramatically more affordability just yet.

RATE RISES AND CONSUMER CONFIDENCE

Three RBA rate increases in 2026 alone have pushed the cash rate to 4.35% — reversing all the cuts delivered through 2025. For households carrying mortgages, this is felt directly: reduced borrowing capacity, higher monthly repayments, and a general wariness around making big financial decisions.

Consumer sentiment has softened measurably. Buyers who are active are deliberate — they're doing more due diligence, taking longer between inspections and offers, and pushing back on pricing that isn't supported by comparable sales. In a market where sellers had the power for several years, the negotiating table has rebalanced. That said, with unemployment still relatively low and the South West's strong local employment base, the fundamentals haven't cracked — they've just cooled.

WHAT THE NEXT 3–6 MONTHS COULD LOOK LIKE

PRICE LEVELS — Expect price growth to moderate rather than reverse. Busselton's low stock levels and lifestyle appeal provide a floor. Sellers who price correctly will still transact; those chasing peak 2024-style premiums will sit.

DAYS ON MARKET — Likely to stretch from the current 17-day average toward 30–45 days as buyers take more time. This is a reversion toward a healthier, more balanced market rhythm — not a crisis signal.

FIRST-HOME BUYERS — The window is opening, incrementally. Budget measures, extended 5% deposit schemes, and reduced investor competition create a more accessible entry point than 12 months ago.

RATE OUTLOOK — Major bank economists are divided on whether June brings another rise or a pause. If inflation softens through Q3, a rate hold or even a cut later in 2026 is possible — and that would meaningfully lift buyer confidence and borrowing capacity.

THE BUSSELTON EDGE — Lifestyle markets are more resilient than data-only analysis suggests. The airport expansion, consistent population growth, and the region's appeal to tree-changers and sea-changers continues to generate organic demand that outlasts rate cycles.

In short: this is a market asking for patience, not panic. For buyers, the conditions ahead represent a more measured opportunity than the frenzy of recent years. For sellers, the emphasis shifts firmly to strategy — correct pricing, strong presentation, and working with agents who understand both the local market and the macro climate.

The Greater City of Busselton remains one of the most compelling residential markets on the west coast. The next six months will reward those who are informed, prepared, and ready to move when the right opportunity presents itself.

Data sourced from REIWA, YIP, CBA Economics, BDO Real Estate Analysis & RBA. General information only — not financial or investment advice.

The Rob Davis Team | eXp Realty

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GREATER BUSSELTON PROPERTY MARKET - May 2026, The Rob Davis Team