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

Perth finished 2025 with strong momentum, closing the year at a median dwelling value of $940,635. Price settings remain firm, with the market sitting back at peak levels and showing substantial gains over the medium term.

Market Highlights

• Perth dwelling values rose 15.9% over the past year, including a 1.9% lift over the latest month and 7.6% over the past quarter.
• The median dwelling value sits at $940,635, keeping Perth among the strongest-performing capital city markets on both growth and total return.
• The market is holding at peak levels, with values up 89.0% over five years and 15.9% since the first rate cut in February.
• Gains remain broad across housing types: houses rose 15.7% annually, while units were higher at 17.5%, with units also showing stronger income metrics.
• Rental conditions are still supportive: rents increased 5.8% for houses and 6.8% for units over the year, with gross rental yields around 3.9% for dwellings.
• Some of the strongest growth pockets sit in Perth’s south-east and growth corridors, led by Belmont, Victoria Park (20.0%) and Armadale (19.5%), with several other SA3s also posting mid-to-high teens growth.
• The pace is likely to soften through 2026 as interest-rate uncertainty and stretched affordability weigh on confidence, but ongoing supply constraints should limit the risk of a sharp reversal and keep conditions uneven rather than weak.

Housing Metrics Overview

See how Perth’s property values have performed across houses and units over various timeframes, along with returns, yields, and median prices.

Watch CoreLogic’s January 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

Growth accelerated into the end of the year. Dwelling values lifted 1.9% over the month and 7.6% over the quarter, delivering 15.9% annual growth and a total return of 20.7%.

By property type, Perth houses rose 15.7% over the year, while units outpaced the market with 17.5% annual growth.

Perth Property Market Trends

Perth’s cycle has pushed values back to peak territory, with a very strong cumulative rise over the past five years (89.0%).

Growth has also been broad across the metro area, with standout annual results in Belmont, Victoria Park (20.0%), Armadale (19.5%), Serpentine, Jarrahdale (18.9%), and Canning (18.3%).

On the income side, rents continued rising. Annual rent growth sat at 5.8% for houses and 6.8% for units, while gross rental yields for Perth dwellings were around 3.9%.

The table outlines CoreLogic’s Home Value Index as of 2nd January 2026, showing peak declines, five-year growth, and changes since the first rate cut in February.

Perth Property Market Forecast

The 2026 backdrop points to a cooler pace than 2025. Interest rate uncertainty, inflation risks, and tighter affordability settings are likely to test buyer demand, while credit settings remain a key sensitivity.

At the same time, low stock levels and ongoing supply shortages can limit downside moves and keep conditions more resilient than the softer demand environment might otherwise suggest.

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

Perth enters 2026 from a position of strength after a sharp year of value growth, supported by broad-based metro gains and rising rents. Conditions are likely to normalise as affordability and rate expectations bite, but constrained supply should help keep the market anchored, with outcomes more likely to be modest and uneven than sharply negative.

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