Perth Property Market – Prices, Trends, Forecast [August 2026]

Perth’s property surge has not disappeared, but the market has clearly changed gear. Dwelling values remain 20.5% higher than a year ago, yet a 0.1% rise in July followed a revised 0.5% fall in June, leaving values 0.3% lower across the quarter. With the median dwelling now valued at approximately $1.03 million, homeowners and sellers are entering a more measured phase shaped by affordability pressures, higher borrowing costs and a persistent shortage of housing.

Key Takeaways

• Perth dwelling values increased 20.5% over the year, the strongest annual result among the capital cities.
• The market has lost momentum, recording growth of just 0.1% in July and a 0.3% decline over the latest quarter.
• The median dwelling value reached $1,029,797, while the market remained only 0.4% below its May 2026 peak.
• Unit values rose 21.8% annually, slightly outperforming houses at 20.4%, with units also delivering a stronger 28.3% total return.
• Rental conditions remain tight, with annual rent growth of 8.1% and a gross dwelling yield of 3.8%.
• Sellers still benefit from substantial long-term gains, including value growth of 85.5% over five years, but pricing expectations may need to reflect softer current demand.

Watch Cotality’s July 2026 Housing Market Update for expert commentary on national and capital city housing trends, price movements, and key market drivers across Perth.

Perth Property Price Growth

Few Australian capitals can match Perth’s recent record. Dwelling values rose 20.5% over the 12 months to July, supported by annual growth of 20.4% for houses and 21.8% for units. Total returns were even stronger at 25.2% across all dwellings, while the market recorded a 6.9% increase over the first seven months of the year.

The longer-term figures are equally significant. Perth values have increased 85.5% over five years and 107.2% over ten years, placing many established homeowners in a strong equity position. However, the latest quarterly decline shows that past growth rates should not be treated as an indication of near-term performance.

Perth Property Market Trends

Beneath the headline gains, conditions are becoming more selective. July’s modest 0.1% rise came after June’s result was revised sharply lower, and values are now 0.4% below their May peak. Units showed slightly greater resilience during July, rising 0.3% compared with 0.1% for houses, although both segments declined over the quarter.

Growth also remains widespread across Perth’s outer and more affordable markets. Serpentine-Jarrahdale recorded annual dwelling growth of 28.2%, followed by Rockingham at 25.3% and Armadale at 25.0%. Strong rental growth of 8.1% continues to support investor income, although higher financing costs and changing investor incentives may limit new purchasing activity.

Here’s a quick look at how housing values are moving across different markets.

Perth Property Market Forecast

The next phase is likely to be defined by slower growth, periods of flat performance and the possibility of further modest monthly declines. Affordability and mortgage serviceability have deteriorated after 75 basis points of interest rate increases, while cost-of-living pressures and weak consumer confidence are restricting buyer capacity. Perth’s 0.3% quarterly fall provides early evidence that these forces are already affecting demand.

A sharp correction appears less likely while unemployment remains low, population growth supports underlying housing demand and new construction remains constrained by high costs and project feasibility challenges. Reduced vendor activity may also prevent advertised supply from rising quickly. On balance, the data points to a softer and more balanced market rather than an immediate return to the rapid growth recorded over the past year.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

Conclusion

Next steps