Perth Property Market Predictions 2026
As 2025 draws to a close, this period presents an ideal opportunity to reflect on the current investment landscape. Our article explores some of the key Perth Property market predictions for 2026, helping you take a proactive and well-informed approach to your next property move.
Overview of Perth Property Prices
Understanding the predictions for the Perth property market begins with a careful review of its market activity over the past year.
With regards to home values, REIWA President Suzanne Brown says, “We have seen sale price growth in each quarter, and over the year unit sale price growth has outpaced growth in houses.”
This is reflected in Perth’s median house price, which recorded annual growth of 8%, reaching $810,000. Unit prices saw even stronger growth at 13%, with the median rising to $565,000.
Ms Brown anticipates that this upward trend in sale prices will continue through the end of 2025 and carry well into 2026.
The primary driver behind this projected growth is the limited housing supply, which has not increased sufficiently to meet the ongoing strong demand.
Rental values have also risen, though at a more moderate pace. In 2025, median rents increased by 2% for houses and 2.1% for units, according to a Cotality report.
This indicates a stabilising market characterised by mild, steady growth and more balanced conditions. Until there is a significant growth in new housing supply, this trajectory is expected to remain unchanged.
Discover your Perth home’s rental income potential for 2026
Whether you’re a first-time investor, managing a growing portfolio, or deciding whether to rent out your home versus selling it, knowing your property’s current rental value is key to unlocking its full potential.
At HERE Property, our free rental appraisal service is designed specifically for Perth landlords and investors who want:
- Data-backed insights,
- Local market knowledge, and
- Results-focused recommendations without the guesswork.
Getting a free and no-obligation rental appraisal is easy.
Simply fill in your property’s address details below and we’ll take care of the rest. We’ll email your rental appraisal report to you once it’s ready.
Perth Median Property Price Predictions 2026
Understanding the projected trajectory of Perth property values in 2026 can help determine whether now is the right time to further invest in the market.
Here are some of the key predictions for the Perth housing market:
Slower Price Growth
According to Westpac, “Perth, which chalked up extraordinary price growth of 18.4% in 2024, will moderate to 8% this year and in 2026.”
This surge experienced in price followed by its mild easing was anticipated in last year’s predictions.
The primary factor behind the deceleration can be linked to stretched affordability, another trend highlighted in the 2025 market predictions.
To put this easing rate into perspective, the 10-year average for the Perth, Western Australia, dwelling price growth is 4.4%.
Since Perth house prices are expected to increase by 8%, that would put it at a slower pace than 2024, yet still remain almost double the 10-year average.
Sustainable Demand
One notable feature of the perceived stretched affordability is that it has not had the drastic impact on buyer sentiment one might expect.
On the contrary, demand remains strong and, for the most part, sustainable despite ongoing price increases.
Supporting this view, Westpac states that the affordability constraints may have been “overestimated”.
It adds that while affordability in the WA capital may be “very stretched”, buyers, particularly property investors, appear “unfazed” by rising prices. The bank, therefore, expects “more gains ahead.”
This raises an important questions: why are investors unlikely to be deterred by the rising prices? What is driving this consumer confidence?
Given the high income growth and lower interest rates, Perth residents enjoy a low mortgage-to-income ratio and relative affordability compared to other capital cities, which empowers them to invest in its properties.
It is important to highlight, however, that interest rates are not expected to decline unless the supply–demand balance shifts significantly, as this could pose inflationary risks.
As the Cotality report explains, “the potential for inflation to be higher than RBA forecasts could see the cash rate holding high for longer.”
Alongside this relative affordability, the expansion of the Home Guarantee Scheme and robust population growth (to be discussed shortly) continue to fuel strong demand. In particular, state government incentives are expected to attract and support even more buyers in an already heated market throughout 2026, leaving considerable room for further growth.
Limited Supply of Housing
Perth’s housing supply continues to tighten, with insufficient new stock entering the market to ease the upward pressure on prices. This undersupply is both chronic and nationwide, largely driven by labour shortages and planning delays.
According to Domain’s Australia Housing Market Forecast Report for 2026, the national housing shortfall is expected to persist into 2026.
Unsurprisingly, limited new supply is a key factor sustaining strong buyer demand. As Ms Brown explains, “Whilst there has been a recent small uptick in new home completions, until there is a substantial increase in the number of new homes built and completed, we expect buyer demand to remain strong and supply to remain constrained.”
This restricted supply is further amplified by strong population growth.
ABC News reports that Western Australia’s population has surpassed 3 million for the first time, marking the fastest growth rate in the country.
The Australian Bureau of Statistics identifies overseas migration as “the major contributor to change in all states and territories.”
While population growth is expected to soften slightly in 2026, including in Western Australia, the increase in median house prices is driven by multiple factors beyond population alone.
As a result, upward pressure on prices is likely to continue regardless.
Units Competing with Houses
Based on Ms Brown’s statement, units are “on track to achieve 15 per cent growth” by the end of the year, which is significantly higher than the projected 10% growth for houses.
This strong performance in the unit market was anticipated in the 2025 predictions, and it highlights a unique emerging trend: units may continue to compete with houses in 2026.
As Ms Brown notes, “unit sale price growth has outpaced growth in houses.”
The primary reason is affordability. With upward pressure on property prices, many buyers are turning to units as a more accessible option.
Many suburbs, particularly inner Perth suburbs, offer new listings at appealing price points for both first-home buyers and investors.
However, this trend may not be sustained over the long term. The appeal of units lies primarily in their relative affordability; as more investors and buyers enter the unit market, prices rise, gradually diminishing that advantage.
It is visible that this shift is already unfolding nationally.
According to the Cotality report, house rents have grown by 1.1%, compared with 0.7% for units.
The report further notes, “This emerging skew towards the lower-density segment may reflect a trend of capital city renters consolidating into larger homes as the average household size rises as a way of managing rising costs, as well as units no longer offering the same affordability advantage they once did.”
Perth Median Rental Price Predictions 2026
Rental market predictions for Perth can assist property investors and owners in making informed decisions to maximise returns on their rental properties.
Here are the key rental market projections for 2026:
Strong Rental Growth
According to Reiwa, the median house price for 2025 is $700, up from $650 in 2024. Median unit price has also increased, rising to $650 in 2025 compared to $610 in 2024. In other words, the median price for both houses and units has recorded solid annual rental growth across Perth’s property market.
As to whether the market has absorbed such growth, the median days are a good indication. They demonstrate how long listings take to rent and, consequently, how potential tenants respond to rental increases.
REIWA data shows that by November 2025, properties were leasing in an average of 16 days, the same timeframe as 12 months earlier.
This suggests the market is effectively accommodating the rental increases.
In terms of how Perth rental growth compares to other cities, Perth and Brisbane both recorded rental growth of 5.6% over the year.
This places Perth below Darwin (7.6%) and Hobart (6.2%) but ahead of Melbourne (1.4%) and Canberra (2.8%).
REIWA forecasts that by the end of the year, Perth’s median weekly rent will average $700 for houses and $675 for units. This represents a 5% increase since December of the previous year.
While this is slower than the 8.1% increase recorded the year before, it aligns with earlier predictions that rental price growth would moderate in 2025.
Despite this moderation, REIWA reassures investors that market conditions remain favourable: “The overall annual trend is still upwards, and again, until we see significant new housing stock, we see little rent relief for tenants. Whilst there is more rental stock available in the outer suburbs, the rental market close to Perth remains very tight.”
In summary, although rental conditions no longer constitute a crisis for tenants, the Perth market remains notably constrained.
Limited Supply
While there is some additional stock emerging in Perth’s outer suburbs, the city itself continues to face a significant shortage of rental supply.
The Cotality report affirms this, noting that “while investors have comprised an elevated portion of home lending over the past two years, this hasn’t translated into additional rental stock.”
A clear indicator of this shortage is the low vacancy rate.
Perth’s rental vacancy rate has steadily increased over the year, reaching 2.2% by October 2025. This has meant some rental price points above median rent are in more supply and are experiencing a slightly longer time to lease.
For context, a balanced market would require a rate between 2.5% and 3.5%.
In response to the need for more supply, REIWA states, “We support government moves to increase housing density throughout Perth and call on the Government to continue its duty concession and rebate scheme for off-the-plan apartments.”
However, even with state programs aiming to increase supply, conversion lags, workforce limitations, and rising construction costs are expected to prolong supply constraints.
As a result, demand is likely to continue outpacing supply, which will place additional upward pressure on rental prices.
Rising Demand
As noted above, restricted supply is directly contributing to stronger rental demand across both houses and units.
Given the already-tight vacancy rate, this heightened demand results in properties being leased very quickly, with very few rental homes remaining vacant for long at any given time.
The current vacancy rate of 2.2% reinforces the strength of tenant demand in Perth.
Looking ahead, supply limitations are expected to persist. While population growth may ease slightly, it will still remain high enough to continue driving rental demand.
The Value of Getting a Property Rental Appraisal in 2025
The key takeaway from these market predictions is that Perth’s housing market remains highly dynamic.
Conditions vary considerably over time and from one suburb to another, often shifting faster than many property owners anticipate.
As a result, landlords and investors often find it challenging to stay fully informed and adjust their strategies to keep pace with market changes and maximise their returns.
Even small movements in vacancy rates, rental yields, or local demand can meaningfully impact an investor’s long-term performance.
This is where expert rental appraisals become essential in 2026. Whether you are entering the market for the first time or managing an established property portfolio, the value of a professional appraisal cannot be overstated.
These assessments provide clarity in environments where assumptions or outdated market knowledge can lead to costly decisions.
By providing accurate rental calculations, property-specific insights, suburb-level analysis, and a comprehensive appraisal report, a detailed rental assessment is one of the most effective ways to make informed investment and purchasing decisions in 2026.
Discover Your Home’s Rental Income Potential with a Free Rental Appraisal
Whether you’re a first-time investor, managing a growing portfolio, or deciding whether to rent out your home versus selling it, knowing your property’s current rental value is key to unlocking its full potential.
At HERE Property, our free rental appraisal service is designed specifically for Perth landlords and investors who want:
- Data-backed insights,
- Local market knowledge, and
- Results-focused recommendations without the guesswork.
Get your free and no-obligation rental appraisal now.
Simply fill in your property’s address details below and we’ll take care of the rest. We’ll email your rental appraisal report to you once it’s ready.
