Perth House Prices Continue to Climb Towards the $1 Million Mark

Perth's property market remains resilient, with REIWA forecasting the city's median house sale price could reach $1 million by the end of 2026 despite signs that market activity is beginning to moderate.

The median house price reached $938,000 at the end of June after strong growth in the first half of the year, while the median unit price climbed to $675,000. Although the pace of growth is expected to slow, prices are still forecast to continue rising throughout the remainder of the year.

The market has become more balanced in recent months. New listings have returned to more typical levels, homes are taking slightly longer to sell, and overall sales activity has eased. Some buyers, particularly investors and first-home buyers, have become more cautious following the Federal Budget and ongoing uncertainty around interest rates.

However, demand for housing in Western Australia remains supported by strong economic conditions and continued population growth. At the same time, the supply of new homes has not kept pace with demand, keeping pressure on the established housing market and supporting property values.

For buyers, the current market may provide more choice and less competition than seen over the past two years. While some are waiting in the hope of lower prices, Perth's market continues to perform differently from many eastern states, with no significant price correction currently expected.

Many existing homeowners are also taking advantage of improved market conditions to upgrade, benefiting from increased listings while still selling into a market where property values remain high.

Rental Market Remains Under Pressure

While property prices have continued to rise, Perth's rental market has remained relatively stable in recent months, with median house rents sitting at $750 per week and unit rents at $700 per week.

Despite this stability, rental supply remains tight, with vacancy rates sitting at around 2 per cent. Investor activity has slowed following recent Federal Budget taxation changes, creating concerns that fewer rental properties could become available in the future.

Western Australia's strong population growth continues to drive demand for rental accommodation. If investment activity does not recover, limited rental supply could place upward pressure on rents and further impact affordability over the coming year.

Regional WA Continues to Perform Strongly

Many regional centres are expected to outperform Perth for price growth during 2026. Areas including Albany, Busselton, and Geraldton are forecast to record particularly strong gains, while Bunbury, Esperance, Kalgoorlie-Boulder, Karratha, and Port Hedland are also expected to deliver solid growth.

Strong buyer demand, combined with limited housing supply and ongoing construction challenges, continues to support regional property markets. Rental markets across many regional centres also remain tight, with several locations expected to experience further rental growth over the coming months.

Overall, while Perth's property market is transitioning away from the rapid pace of recent years, the fundamentals remain strong. Buyers have more opportunities than they did a year ago, sellers continue to benefit from healthy property values, and both metropolitan and regional markets are expected to remain active through the rest of 2026.