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

Perth has opened 2026 with one of the strongest housing markets in the country, underpinned by tight supply and resilient demand. Dwelling values lifted 2.0% over the month and 7.0% over the quarter, keeping the city at peak pricing levels while many larger markets are slowing. The median dwelling value is $961,898, reflecting a market that has moved firmly into a higher price band yet still attracts buyers seeking relative value compared with the east coast.

Growth is broad-based, but the heat is most visible in more affordable segments and in areas where competition for established homes is intense. At the same time, momentum has eased from late-2025 highs, signalling that affordability and borrowing constraints are starting to bite.

With listings still scarce and rents tight, Perth’s fundamentals remain supportive. However, 2026 is likely to bring a more complex mix of headwinds, including cost-of-living pressure, a cautious lending environment and the risk of higher interest rates.

Highlights

• Perth led capital-city conditions, rising 2.0% over the month and 7.0% over the quarter.
• The median dwelling value sits at $961,898, with prices holding at peak levels.
• Growth remains broad-based, but demand is concentrating in more affordable segments.
• Momentum has cooled from late-2025 highs as affordability and borrowing capacity tighten.
• Tight supply and strong rental conditions continue to provide a floor under values.
• 2026 is likely to deliver slower, more uneven gains rather than a sharp reversal.

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 December 2025 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

Perth’s price growth has been standout over the past year, with dwelling values up 18.5% and total returns reaching 23.5% once rental income is considered. The city is also sitting at peak levels, highlighting how persistent demand and limited stock have kept upward pressure on prices even as conditions elsewhere soften. Over the past five years, Perth values have risen 89.2%, underscoring the scale of the upswing from earlier-cycle lows.

Short-term indicators still point to strength, with values rising 2.0% in the latest month and 7.0% over the most recent quarter. Even so, the pace has cooled from the late-2025 surge, suggesting the market is transitioning from rapid gains to a more sustainable growth rate.

Across property types, units have edged ahead on annual growth (around 20%), while houses remain close behind (about 18%). This divergence hints at affordability-driven demand, where buyers and investors increasingly consider apartments as detached housing becomes more expensive.

Perth Property Market Trends

Perth’s market is characterised by strong buyer competition meeting a shortage of available stock. New year conditions have remained positive across the city, with quarterly growth outpacing most other capitals and values continuing to climb despite higher living costs. This pattern is consistent with a market where demand has stayed above average while the pool of homes for sale remains constrained.

Momentum, however, is no longer accelerating. Monthly growth has moderated from late-2025 highs, a sign that stretched affordability and borrowing capacity are beginning to temper some urgency. Price sensitivity is becoming more evident, with activity gravitating toward comparatively affordable suburbs and product types, and greater attention on value for money.

Rental settings also feed into market dynamics. Vacancy remains historically low across Australia, and yields in Perth sit around 3.8% for dwellings, offering a steady income offset even as prices rise. For many households, the gap between renting and owning has narrowed, helping to keep buyer interest supported even as financing conditions stay tight.

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

Perth Property Market Forecast

Looking ahead, Perth is well placed for continued gains, but the pace of growth is likely to ease through 2026. The city’s key support remains supply: construction activity has struggled to keep up with demand, and established listings are still well below normal levels. In that environment, even a modest slowdown in buying activity may be absorbed without a meaningful lift in stock.

The main risks sit on the demand side. Affordability and serviceability constraints are already acute after the past year’s sharp uplift, and any further interest rate increase would quickly reduce purchasing power. Lending is also becoming more cautious at the margin, which can cap how far and how fast prices can run.

Overall, the more probable path is a shift from rapid appreciation to uneven, mid-single-digit growth, with outperformance likely to persist in lower to mid-price segments. A sharp downturn appears unlikely unless economic conditions weaken materially.

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 remains one of Australia’s strongest housing markets, combining solid economic fundamentals with a structural shortage of available homes. With values up strongly over the year and the median dwelling near $1.0 million, the city has delivered outsized gains while still drawing buyers looking for relative value.

The next phase is likely to be calmer. As affordability limits and borrowing constraints tighten, growth should slow and become more uneven across suburbs and property types. Even so, tight listings and supportive rental conditions provide a strong floor for prices, making a broad-based pullback less likely than a period of steadier, more sustainable growth.

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