The Western Australian property market is entering a new phase in October 2026. After several years of strong growth, Perth house and unit prices are showing signs of slowing, properties are taking longer to sell and buyers are becoming more cautious. However, rental supply remains tight, with tenants continuing to face affordability pressures.
Recent data from the Real Estate Institute of Western Australia (REIWA) suggests the market is becoming more balanced, although conditions vary considerably between suburbs and regional centres. For homeowners, investors and prospective buyers, understanding these changes is important when making property decisions.
Perth Property Prices: Growth Is Slowing
According to REIWA’s October market update, Perth’s annual median house sale price reached approximately $965,000 in September 2026, while the median unit price reached $695,000. Both figures remained substantially higher than a year earlier, but the pace of growth had slowed.
REIWA reported that annual house price growth slowed sharply between the June and September quarters. Higher interest rates, reduced borrowing capacity, rising living costs and changing buyer sentiment are contributing to more cautious market conditions.
The number of properties available for sale has also increased, giving buyers more choice and time to compare properties. This means sellers may need to be more realistic about pricing, presentation and negotiation.
Perth Rental Market Remains Under Pressure
Despite the slowdown in property price growth, Perth’s rental market remains challenging.
REIWA reported that only 1,914 rental properties were available across Perth at the end of September, down 8.8% from a year earlier. The vacancy rate fell to 1.7%, while median weekly rents were approximately $750 for houses and $700 for units.
For tenants, limited availability and high rents continue to create affordability pressures. For investors, strong rental demand may support income, but higher borrowing costs, insurance, maintenance and other expenses need to be factored into cash-flow calculations.
What Is Happening Across Regional WA?
Regional property markets are also experiencing changing conditions, although performance varies by location.
REIWA has reported slower price growth in centres including Albany, Bunbury, Busselton and Esperance. Meanwhile, markets such as Kalgoorlie-Boulder and Karratha have shown greater resilience, supported by local economic conditions and rental demand.
Investors should look beyond headline price growth and assess local employment, population trends, rental yields, vacancy rates and the prospects for future resale demand.
Housing Supply and the WA Government
Housing supply remains a major issue for Western Australia. The WA Government reported that 24,223 dwellings commenced construction in the year to March 2026, an increase of 15.2% year-on-year. It also reported increased dwelling completions during the March quarter, although construction capacity and delivery times remain important challenges.
Additional housing supply will be important in improving affordability over time. However, construction delays, labour availability and the cost of building can affect how quickly new homes become available.
What Should Property Buyers and Investors Consider?
With the market changing, buyers and investors should focus on fundamentals rather than assuming recent price growth will continue.
- Buyers: Compare similar properties, negotiate carefully and assess repayments under different interest-rate scenarios.
- Property investors: Review rental income, loan costs, maintenance and vacancy assumptions to understand the property’s likely cash flow.
- Sellers: Use recent local sales evidence to set realistic expectations and prepare the property for sale.
- Existing owners: Review property expenses, insurance, loan arrangements and long-term investment objectives.
How Camden Professionals Can Help
Camden Professionals can help property investors and business owners understand the financial and tax implications of property ownership. Our team can assist with reviewing rental property deductions, assessing cash flow, planning for capital gains tax and considering ownership structures as market conditions change.
Whether you own an investment property in Perth or regional WA, professional advice can help you make informed decisions based on your broader financial position.
Contact Camden Professionals to discuss your property investment strategy and tax planning needs.
Key Australian sources
- REIWA: Perth property price growth slowed significantly in the September 2026 quarter
- REIWA: Rental listings in Perth drop below 2,000
- WA Government: New data reveals strong housing construction pipeline
General Information Warning
The material on this page and on this website has been prepared for general information purposes only and is not intended to provide tax advice for any person’s specific circumstances. Tax outcomes depend on the individual facts and the law applying at the relevant time.
Before acting on the information in this article, you should obtain professional advice that takes into account your circumstances and the details of the proposed transaction or property project.
Although every effort has been made to verify the accuracy of the information contained on this page and on this website, Camden Professionals, its officers, representatives, employees, and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy in, or omission from the information contained in this website or any loss or damage suffered by any person directly or indirectly through relying on this information.
Note: This article provides general information, not legal, insolvency or personalised tax advice. Business owners should obtain advice appropriate to their circumstances before entering into a sale agreement.
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