The Perth Boom: What’s Driving Record Growth?

As we move towards 2026, Perth has firmly established itself as Australia’s standout property performer. Median dwelling values have now pushed past $800,000, and growth momentum shows little sign of easing. The latest figures reveal a quarterly increase of 2.6% — the equivalent of more than 10% annual growth. But what’s really driving this surge, and can it last? Let’s take a closer look at the factors shaping the city’s remarkable market.

A Market Defined by Short Supply
The single biggest driver behind Perth’s record growth is a chronic shortage of homes for sale. Current listings across the entire metro area sit below 3,000 — the lowest level in recorded history. By comparison, a balanced market typically sees between 14,000 and 15,000 listings. This scarcity has intensified competition among buyers and kept upward pressure on prices across all property types.

Relentless Demand Keeps the Market Hot
While supply remains tight, demand has been unrelenting. Properties are selling at record speed, spending a median of just 11 days on the market. With roughly 800 transactions each week and fewer than 3,000 listings available, Perth effectively has less than a month’s worth of housing stock at any given time. Sellers continue to hold the advantage, with minimal discounting and consistently strong buyer interest.

Rental and Investor Activity
The rental market remains under pressure, with median weekly rents now around $690 — up 5.1% year-on-year. Gross yields have tightened slightly to 4.2%, but still outperform those in Sydney and Melbourne. Investor lending currently makes up about 36% of new loans, suggesting the market is being driven by genuine demand rather than speculative activity. Combined with WA’s nation-leading population growth of 2.39%, the underlying fundamentals remain strong.

Economic Tailwinds Support Growth
Recent RBA cash rate cuts have also given the market another boost. Lower borrowing costs have lifted buyer confidence, increased borrowing capacity, and encouraged both homeowners and investors back into the market. With further rate reductions expected in the coming months, demand is likely to remain elevated well into 2026.

Price Forecasts for the Year Ahead

• Looking ahead, REIWA and other market analysts expect continued growth across Perth’s housing sector:
• Base Case (6–8% Growth): The most likely outcome, supported by population growth, tight supply, and steady demand.
• Upside Scenario (8–10%+ Growth): If listings remain near record lows and rental demand continues to rise, stronger gains are possible.
• Downside Scenario (Unlikely): Price growth would only stall if new listings surged dramatically, unemployment rose, or construction completions increased sharply — none of which seem probable in the short term.

With limited supply, robust demand and supportive economic conditions, Perth’s property market continues to lead the nation. While growth may moderate slightly as we move into 2026, the fundamentals remain strong — making it a compelling market for both buyers and investors in the year ahead.

If you'd like to talk about how this will affect your property plans, don't hesitate to contact the team at Bellcourt on 08 6141 7848.