The Western Australian property market currently stands in a position of relative strength: strong recent growth, tight supply, supportive demographics and a resilient economy. For buyers and investors, this means the environment remains favourable — though the heady growth of the past years is unlikely to continue at the same pace.
Looking towards 2026, the outlook is cautiously optimistic: price growth is expected to continue, but at a more moderate rate (around 4–6% for houses, somewhat more for units in desirable locations). The smart play will be to focus on quality locations, housing types with strong demand (units, townhouses, suburban houses near amenities/infrastructure) and to factor in risk (affordability, economic exposure, suburb‑specific factors).
If you’re considering buying or investing in WA property now or over the next year, the key is to move early, choose well‑located stock, anticipate the longer‑term horizon, and avoid relying on extraordinary short‑term gains. While the market is still favourable, the era of double‑digit annual growth is likely winding down and selective discipline will matter.
Strong Up‑trend in Recent Years
The WA property market has been among Australia’s most dynamic — especially in and around Perth and selected regional centres. For example:
- In 2024 the median house price in Perth rose by 24.2% year‑on‑year, after a weaker base in previous years.
- Dwelling values in Perth jumped ~12% annually in recent quarters, while monthly growth hovered around 0.9%.
- Some regional WA markets recorded even stronger growth, on track for ~20% price gains in 2025 in certain hotspots.
Key Drivers
Several underlying fundamental factors support the momentum:
- Population growth: WA has been seeing strong inward migration and population increases, boosting housing demand.
- Tight supply: Housing supply remains constrained. For example, completions and land release have struggled to keep pace.
- Strong local economy: The resources sector, employment levels and economic stability in WA strengthen buyer and investor confidence.
- Relative affordability: Compared to Sydney or Melbourne, many parts of Perth still offered comparatively better value, attracting both local and interstate buyers.
Market Characteristics & Risks
- Vacancies in Perth’s rental market have risen from crisis lows (~0.4%) up to ~2.5% in some reports, indicating easing supply pressure but still tight relative to many markets.
- Sales volumes have softened slightly from peak activity; while listings remain low, time on market is increasing in some areas, signaling a gradual balance shift.
- Affordability is becoming a concern: high growth means home‑buyers are moving up price tiers, and some regions may be more exposed to risk. For example, dependency on resource industry, or bursts of rapid growth can pose downsides.
Outlook to 2026 and Beyond
Forecasted Price Growth
The consensus of recent forecasting research for WA / Perth is:
- Moderate growth for remainder of 2025: many analysts estimate 5–10% price growth in 2025, after the high‑growth years.
- For 2026: expectations are a slightly slower growth rate, possibly in the order of 4–6% for houses and maybe 5–8% for units in certain segments.
- Longer term (towards 2030), growth may pick up again as supply constraints, population momentum and infrastructure tailwinds combine.
What Will Drive the Market to 2026?
- Infrastructure & regional expansion: New infrastructure in Perth and regional WA will open up new suburbs and drive demand.
- Interstate migration continuing: If the flow of people into WA remains strong, demand will be sustained.
- Interest rates: Any downward movement in the national cash rate or relaxed lending conditions could boost buyer capacity and market activity.
- Unit market strength: With affordability constraints on houses, units (apartments/townhouses) are likely to be in demand and may outperform houses in some areas.
Risks & What to Watch
- Affordability fatigue: If interest rates rise again, or household incomes don’t keep pace, some buyer segments may be squeezed.
- Oversupply risk in certain segments or suburbs: While supply is constrained generally, some new‑build apartment precincts or over‑hyped suburbs could see softer outcomes.
- Economic exposure: WA is still more exposed to resource‑sector cycles than some other states; a downturn in global commodity prices or mining investment could impact local employment and demand.
- Policy changes: Stamp duty, land tax, foreign investment rules or state housing policy could change and impact the market.
- Regional divergence: Not all suburbs or regions will perform equally — some areas may lag, some may lead. Entry‑point risk is higher in modest‑growth pockets.
Top 10 Suburbs – House Sale Price Growth (August 2025)
| Rank | Suburb | Median House Price (Aug 2025) | Annual Growth | 5-Year Growth | Median Selling Days (Jun–Aug 2025) |
| 1 | Bateman | $1,303,000 | 37.9% | 72.5% | 20 |
| 2 | Ardross | $1,765,000 | 33.2% | 95.2% | 18 |
| 3 | Madeley | $975,000 | 30.3% | 74.1% | 13 |
| 4 | Trigg | $2,300,000 | 27.8% | 93.3% | 15 |
| 5 | Woodvale | $1,120,000 | 25.4% | 83.2% | 9 |
| 6 | Calista | $600,000 | 25.0% | 131.2% | 12 |
| 7 | Silver Sands | $837,500 | 25.0% | 99.4% | 23 |
| 8 | Woodlands | $1,750,000 | 25.0% | 90.2% | 17 |
| 9 | Aubin Grove | $923,000 | 24.7% | 79.6% | 11 |
| 10 | Midvale | $655,000 | 24.5% | 116.5% | 7 |
Key Insights:
- Top Annual Growth: Bateman leads with +37.9%.
- Biggest 5-Year Growth: Calista at +131.2%, followed by Midvale at +116.5%.
- Fastest Selling: Midvale (7 days), Woodvale (9 days) — indicating high buyer demand.
- High-End Markets: Trigg and Ardross sit at the top in terms of price ($2.3M and $1.76M respectively).
- Affordable Growth Options: Calista and Midvale offer lower entry points with very high long-term growth.
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