The Perth property market continues to stand out in 2026 as one of Australia’s strongest-performing housing markets. While other capital cities are beginning to soften under the weight of higher interest rates and affordability pressures, Perth is showing resilience driven by structural supply shortages and economic strength.
What makes this cycle particularly interesting is that Perth is no longer in the early “recovery” phase—it has moved into a maturing growth phase. This means prices are still rising, but the pace of growth is beginning to normalise rather than accelerate aggressively.
This transition is important for both investors and owner-occupiers. It signals that while opportunities remain strong, market selection and timing are becoming more critical than during the earlier boom phase.
March 2026 Perth Market Snapshot
Sales & Listings Trends
| Metric | March 2026 (Latest) | Trend |
| Median House Price | ~$890,000 | Rising |
| Median Unit Price | ~$600,000–$720,000 | Strong growth |
| Listings for Sale | ~2,700–2,867 | Increasing (but low YoY) |
| Annual Listings Change | -40% to -43% vs 2025 | Severe shortage |
| Weekly Sales | ~800 transactions | Stable |
The median house price approaching $890,000 reflects sustained buyer competition, particularly in well-located suburbs. This is not just a short-term spike, it is the result of multiple years of undersupply catching up with strong demand.
Although listings have started to rise slightly month-to-month, this needs to be viewed in context. A 40%+ decline compared to last year is significant. It means that even with more properties coming onto the market, there are still far fewer homes available than buyers require.
Sales volumes holding steady at around 800 transactions per week indicate that demand has not weakened. Instead, buyers are continuing to transact despite higher interest rates, suggesting confidence in Perth’s long-term value.
Rental Market Snapshot
| Metric | March 2026 | Trend |
| Median House Rent | ~$720/week | Stable-high |
| Median Unit Rent | ~$690/week | Increasing |
| Rental Listings | ~1,900 properties | Tight supply |
| Days on Market (Rental) | ~16 days | Very fast |
| Vacancy Trend | Low | Landlord-favourable |
Perth’s rental market remains one of the tightest in Australia. Median rents at these levels are not just high, they are being sustained, which indicates that tenants are continuing to absorb increases.
The extremely low number of rental listings highlights a critical issue: supply has not kept up with population growth. This is partly due to a slowdown in new construction and investors exiting the market in previous years.
Properties leasing in just over two weeks shows how competitive conditions are. In many cases, tenants are applying immediately, often offering above asking rent or paying months in advance.
For investors, this translates into strong rental yields and low vacancy risk, making Perth particularly attractive compared to other capital cities where yields are lower.
Key Drivers of Perth Property Growth in 2026
- Supply Shortage & Low Listings
The supply shortage is arguably the most important factor underpinning Perth’s property market. Over recent years, new housing construction has not kept pace with demand due to rising building costs, labour shortages, and planning constraints.
Even as listings begin to increase, they are doing so from a very low base. This means the market remains structurally undersupplied. In practical terms, buyers still face limited choice, which supports price growth even in a higher interest rate environment.
Until there is a meaningful increase in housing supply either through new builds or significantly higher listings, this imbalance is likely to persist.
- Population Growth & Economic Strength
Western Australia’s economy continues to benefit from strong performance in the mining and energy sectors. This has led to job creation and interstate migration, particularly from more expensive states like New South Wales and Victoria.
Population growth of around 2.2% may seem modest, but in housing terms it is significant. Every new household entering the market increases demand for both rentals and home purchases.
Unlike some other states, WA’s economic growth is closely tied to global commodity demand. This provides a level of resilience, as employment remains strong even when other parts of the country slow down.
- Rising Demand & Buyer Behaviour
Buyer behaviour in Perth has shifted notably over the past 12–18 months. Earlier in the cycle, buyers were cautious and price-sensitive. Today, the market is characterised by urgency and competition.
Many buyers are experiencing “fear of missing out” (FOMO), driven by consistent price increases and limited stock. This often leads to:
- Faster decision-making
- Competitive offers
- Reduced negotiation power for buyers
As a result, properties are selling quickly, and in some cases above asking price. This dynamic reinforces upward price pressure.
- Shift Toward Units & Affordability
Affordability is becoming a more prominent factor as house prices rise. Many buyers who are priced out of the detached housing market are turning to units and townhouses.
This shift is driving stronger growth in the unit segment, which is expected to outperform houses in 2026. Units also appeal to investors due to:
- Lower entry prices
- Higher rental yields
- Strong tenant demand
Over time, this trend may lead to increased medium-density development, particularly in well-connected urban areas.
Risks & Challenges for 2026
Interest Rates & Borrowing Capacity
Higher interest rates remain the biggest external risk. As borrowing capacity decreases, some buyers may delay purchasing or reduce their budgets. However, Perth’s relative affordability compared to other capitals provides a buffer. Even with rate increases, many properties remain within reach for buyers.
Affordability Constraints
Rapid price growth is beginning to create affordability challenges, particularly for first-home buyers. This could lead to:
- Increased demand for smaller or more affordable properties
- Greater reliance on family support or government incentives
- Delayed home ownership
Over time, affordability constraints can slow price growth, even if demand remains strong.
Increasing Listings
The recent rise in listings is an early sign that supply may gradually improve. If this trend continues, it could reduce competition and stabilise prices.
However, given the current supply deficit, it would take a significant and sustained increase in listings to shift the market into balance.
Western Australia Regional Market Outlook
Regional WA markets are also benefiting from strong economic conditions, particularly in mining regions. These areas are seeing increased demand from workers and investors seeking higher yields.
Lifestyle regions are attracting buyers looking for affordability and quality of life. However, these markets tend to be more volatile and dependent on local economic conditions.
Perth remains the most stable and liquid market, making it the primary focus for most investors.
Perth Property Forecast 2026–2027
| Segment | Forecast |
| Houses | +8% to +12% growth |
| Units | +15% to +20% growth |
| Rents | Continued upward pressure |
| Listings | Gradual increase |
| Market Cycle | Moving from boom → stabilisation |
This forecast reflects a market that is still growing but at a more sustainable pace. For investors, this is often an ideal phase—strong fundamentals remain, but risks of overheating are reduced.
Investment Insights
The Perth market in 2026 presents a compelling case for investors, particularly those focused on long-term fundamentals rather than short-term speculation.
Opportunities are strongest in areas where infrastructure development, population growth, and affordability intersect. Units and townhouses are especially attractive due to their balance of yield and growth potential.
A disciplined approach is essential. Investors should focus on:
- Cash flow sustainability
- Location quality
- Long-term demand drivers
Monitoring interest rates and supply trends will also be critical in making informed decisions.
Sources & References
- REIWA Market Forecast & March 2026 Snapshots
- WA Property Market Data & Analysis Reports
- Australian Property Market News (March–April 2026)
- Rental Market Reports (WA)
How can we help?
If you have any questions or would like further information, please feel free to give our office on 08 9221 5522 or via email – info@camdenprofessionals.com.au or arrange a time for a meeting so we can discuss your requirements in more detail.
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