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

No capital has matched Perth’s five-year rise in dwelling values, yet its market is now correcting. Values remained 74.0% higher over that period to September 2026. The substantial legacy of those gains is an elevated price base: recent falls are trimming accumulated growth rather than returning Perth to the property values of several years ago.

Key Takeaways

• Long-term gains remained substantial at 74.0% over five years, even with dwelling values 6.0% below their April peak.
• Unit values fell 5.1% over the quarter, compared with a 4.6% decline for houses.
• Estimated sales volumes over the past three months were 24.2% below a year earlier.
• Annual rent increases reached 8.0% for houses and 7.5% for units, alongside a September vacancy rate of 2.1%.
• The near-term outlook favours gradual easing as national financing pressures constrain demand, partly offset by limited new housing supply.

Watch Cotality’s August 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

Annual dwelling growth of 10.1% still reflects Perth’s earlier strength, not its present direction. Values fell 1.2% in September 2026 and 4.7% over the quarter, leaving them 6.0% below April’s peak. Growth since the start of 2026 was 1.5%. Longer-term growth remained substantial: 74.0% over five years and 97.6% over a decade.

Quarterly declines were steeper for units, at 5.1% against 4.6% for houses, although annual growth favoured units at 10.5% versus 10.0%. Estimated median values were $714,265 for units and $1,017,734 for houses, with dwellings overall at $975,022. Serpentine–Jarrahdale and Mandurah led Greater Perth’s local annual growth rankings, gaining 15.3% and 14.6%, respectively.

Perth Property Market Trends

Reduced turnover is evident in Perth’s estimated home sales, which were 24.2% below a year earlier over the past three months. This was among the largest capital-city contractions. In the broader Australian market, longer selling times and greater advertised supply have reduced buyer urgency and increased negotiating scope.

The rental market presents a different picture. Annual rental growth reached 8.0% for houses and 7.5% for units, while September’s vacancy rate was 2.1%. Gross yields were 5.2% for units and 3.9% for houses, with dwellings overall at 4.0%. These measures exclude expenses; nationally, high mortgage interest, insurance, maintenance and strata costs continue to limit opportunities for positive investment cash flow.

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

Perth Property Market Forecast

Purchasing capacity is likely to shape Perth’s next phase after its 4.7% quarterly decline. Nationally, higher mortgage costs and elevated living expenses are restricting what buyers can afford, making further gradual easing the more likely near-term direction. Australia’s construction constraints offer a partial counterweight: high costs, limited building capacity and lengthy delivery times limit the supply of new housing. Relatively low national unemployment should also help contain forced selling, although a material weakening in the labour market would increase the risk of a sharper correction.

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 (Reviewed September 2026):

• ANZ expects capital-city prices to decline in both 2026 and 2027. ANZ forecast coverage
• CBA expects further national price declines before a modest recovery during 2027. CBA housing outlook
• NAB forecasts lower prices across the eight capital cities in 2026. NAB Housing Monitor
• Westpac’s June forecast anticipates flat prices in 2026 and growth in 2027, although its September update warns of further downside. June Housing Pulse, September housing update

For the remainder of 2026 and into 2027, this means:

• A softer near-term outlook: The bank updates point to continued pressure on property prices, replacing the earlier expectation of broadly rising values. NAB.
• Different conditions between cities: Sydney and Melbourne face the largest forecast declines in CBA’s outlook, although weakness has also spread to Brisbane, Perth and Adelaide. CBA.
• Borrowing costs remain important: The timing and strength of any recovery depend partly on interest rates. CBA’s forecast for modest growth in 2027 assumes rate cuts during that year. CBA.
• More negotiating room for buyers: Westpac reports rising listings and expects buyers to have greater bargaining power in many markets heading into spring. This is an interpretation of market conditions, not a guarantee for individual properties. Westpac.

Conclusion

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