Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Perth's property market is included in our pack
Thinking about buying property in Perth in 2026 and wondering if the timing is right?
We track Perth housing prices weekly and update this article with fresh data so you always have the latest picture of what's happening in the Perth real estate market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Perth.
So, is now a good time?
Rather yes, January 2026 is a reasonable time to buy property in Perth if you plan to hold for at least five years and can afford repayments even if interest rates rise slightly.
The strongest signal is that for-sale listings in Perth have dropped to around 2,000 homes compared to over 4,500 the same time last year, meaning buyers face stiff competition and sellers hold most of the power.
Another strong signal is that Perth dwelling values rose nearly 16% over the past year according to CoreLogic, showing that demand still outpaces the limited supply of homes for sale.
Other supporting signals include Perth's vacancy rate sitting around 0.7% (well below the balanced 2.5% to 3.5% range), rents climbing 6% annually, and major banks forecasting another 4% to 8% price growth for 2026.
The best strategies in Perth right now include buying family houses or villas in middle-ring suburbs like Bayswater, Morley, or Dianella for long-term holding, or units near rail hubs if your budget is tighter, focusing on rental yield of around 4%.
This is not financial or investment advice, we don't know your personal situation, and you should do your own research before making any property decisions.
Is it smart to buy now in Perth, or should I wait as of 2026?
Do real estate prices look too high in Perth as of 2026?
As of early 2026, Perth property prices look stretched compared to incomes (around 7.6 times the typical household income) but not wildly out of line when you look at rents, with gross yields around 4% suggesting prices have some fundamental support.
One clear signal in the Perth listings data is that homes are selling in a median of just 9 days, which tells you buyers are paying asking prices quickly rather than negotiating hard or waiting for price cuts.
Another indicator is that total listings in Perth sit at only about 2,000 properties, roughly 40% of what a balanced market would need (around 5,000 to 6,000), so the shortage itself is keeping prices elevated rather than speculation alone.
You can also read our latest update regarding the housing prices in Perth.
Does a property price drop look likely in Perth as of 2026?
As of early 2026, the likelihood of a meaningful property price decline in Perth over the next 12 months looks low, mainly because the supply shortage remains severe and population growth continues to add demand faster than new homes are built.
The plausible range for Perth property prices over the next 12 months sits between roughly flat (0%) on the downside if affordability bites hard, and around 8% higher on the upside if listings stay this tight and rates fall further.
The single most important factor that could increase the odds of a price drop in Perth would be a sharp rise in unemployment, because the mining and resources sector employs so many Western Australians that job losses would quickly reduce buying power.
However, this scenario looks unlikely in early 2026 because WA's economy remains supported by commodity exports, infrastructure spending, and continued interstate migration seeking work opportunities.
Finally, please note that we cover the price trends for next year in our pack about the property market in Perth.
Could property prices jump again in Perth as of 2026?
As of early 2026, the likelihood of a renewed price surge in Perth is medium to high, though any jump would more likely be a steady grind upward (another 4% to 8%) rather than an explosive boom like the 17% seen in 2025.
The plausible upside range for Perth property prices over the next 12 months sits around 4% to 8%, with major banks like Westpac forecasting 4%, NAB at 3.7%, and ANZ at 4.3%, while some analysts see up to 8% if listings stay very low.
The single biggest demand-side trigger that could drive Perth prices to jump again is a further RBA rate cut, because even a 0.25% drop would boost borrowing power and bring more first-home buyers into an already competitive market.
Please also note that we regularly publish and update real estate price forecasts for Perth here.
Are we in a buyer or a seller market in Perth as of 2026?
As of early 2026, Perth is clearly a seller-leaning market because listings have dropped to around 2,000 properties (down from over 4,500 a year ago), giving sellers strong leverage while buyers compete for limited choice.
Perth's months-of-supply sits at roughly 1.5 to 2 months based on current sales pace versus available listings, which is well below the 4 to 6 months that would indicate a balanced market where neither buyers nor sellers have clear advantage.
The share of listings with price reductions in Perth appears minimal based on the rapid 9-day median selling time, which suggests sellers can hold firm on asking prices rather than dropping them to attract buyers.
We have made this infographic to give you a quick and clear snapshot of the property market in Australia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Perth as of 2026?
Are homes overpriced versus rents or versus incomes in Perth as of 2026?
As of early 2026, Perth homes look expensive but not wildly overpriced when measured against rents (yields around 4% are reasonable for a capital city), though they are stretched when compared to typical household incomes (around 7.6 times annual earnings).
The price-to-rent ratio in Perth sits at roughly 23 times annual rent for the median house (A$840,000 price versus A$36,400 yearly rent), which is above the 15-to-20 range often considered cheap but below the 30-plus levels seen in bubble markets like Sydney.
The price-to-income multiple in Perth currently sits around 7.6 times the typical household income (estimated at around A$110,000 per year in 2026), which is stretched compared to the historical 4-to-5 times benchmark but still more affordable than Sydney's 10-plus ratio.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Perth.
Are home prices above the long-term average in Perth as of 2026?
As of early 2026, Perth home prices are significantly above their long-term average, with CoreLogic noting that dwelling values have risen 89% over the past five years and more than doubled since early 2020.
The recent 12-month price change in Perth was around 16% according to CoreLogic, which is well above the pre-pandemic long-run average of roughly 3% to 5% annual growth and signals that the current pace is unsustainably fast.
When adjusted for inflation, Perth prices likely sit above their prior cycle peak (around 2014), though the gap is less dramatic than the nominal figures suggest because general inflation has eroded some of that apparent gain.
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What local changes could move prices in Perth as of 2026?
Are big infrastructure projects coming to Perth as of 2026?
As of early 2026, the biggest infrastructure project affecting Perth property prices is METRONET, with the new Midland Station opening on 22 February 2026, which should lift values in suburbs along the rail corridor like Bayswater, Morley, Ellenbrook, and Midland itself.
The METRONET project is essentially complete, with the Midland Station opening date announced and construction finished, meaning buyers in these rail-linked suburbs can expect to see the accessibility benefits reflected in prices immediately rather than waiting years.
For the latest updates on the local projects, you can read our property market analysis about Perth here.
Are zoning or building rules changing in Perth as of 2026?
The most important zoning change being discussed in Perth is the push to speed up approvals and unlock more infill development in middle-ring suburbs, which the WA Government has flagged as part of its housing supply response.
As of early 2026, the likely effect of these zoning changes is to support prices in suburbs where infill becomes easier (like Bayswater, Maylands, Victoria Park) by adding more townhouses and villas, while potentially slowing price growth in outer suburbs that lose some relative appeal.
The areas most affected by these rule changes are middle-ring suburbs within 10 to 15 kilometres of the Perth CBD, especially those near train stations where zoning already allows or will soon allow higher-density villas, townhouses, and low-rise apartments.
Are foreign-buyer or mortgage rules changing in Perth as of 2026?
As of early 2026, foreign-buyer and mortgage rules in Perth are staying largely stable, with APRA confirming the 3% serviceability buffer remains in place and WA maintaining its foreign buyer duty surcharges, which together limit any sudden surge in demand.
The most likely foreign-buyer rule development to watch is potential tightening of enforcement around vacant property and foreign ownership reporting, though no major new taxes or bans are currently being legislated for WA specifically.
The most likely mortgage rule change is a possible reduction in the APRA serviceability buffer from 3% to 2.5% if inflation stays contained, which would boost borrowing power by roughly 5% to 7% and add fuel to Perth's already competitive market.
You can also read our latest update about mortgage and interest rates in Australia.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Australia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Will it be easy to find tenants in Perth as of 2026?
Is the renter pool growing faster than new supply in Perth as of 2026?
As of early 2026, renter demand in Perth is still growing faster than new rental supply, though the extreme imbalance from 2023 to 2024 has eased slightly as completions pick up and some landlords return to the long-term rental market.
The best indicator of renter demand in Perth is WA's population growth rate of around 2.3% annually, driven heavily by interstate migration from Victoria and New South Wales plus overseas arrivals seeking mining and resources jobs.
The pace of new rental supply in Perth is improving, with the WA Government noting rising approvals and completions, but listings available for rent (around 1,700 properties) remain well below the roughly 4,000 needed for a balanced market.
Are days-on-market for rentals falling in Perth as of 2026?
As of early 2026, rental properties in Perth are leasing quickly, with well-priced homes in good suburbs typically finding tenants within 1 to 3 weeks, though the frenzy of 2023 (when homes leased in days) has eased slightly.
The difference in leasing speed between best areas (like East Perth, Scarborough, Mount Lawley) and weaker areas is significant: premium suburbs still lease in under 2 weeks, while outer suburbs or properties with condition issues may take 4 to 6 weeks.
One common reason days-on-market stays low in Perth is the persistent undersupply, with SQM Research reporting vacancy rates around 0.7% (compared to a balanced 2.5% to 3.5%), which means tenants compete for nearly every decent listing.
Are vacancies dropping in the best areas of Perth as of 2026?
As of early 2026, vacancy rates in Perth's best-performing rental areas like East Perth, Subiaco, Scarborough, and Mount Lawley are extremely low (often below 0.5%), and these premium suburbs continue to tighten while outer areas see only marginal relief.
The current vacancy rate in Perth's best suburbs is roughly half the metro average of 0.7%, with inner-city and coastal pockets reporting effective vacancies of 0.2% to 0.4%, meaning landlords in these areas have near-zero trouble finding tenants.
One practical sign that best areas are tightening first is that rental open homes in suburbs like Scarborough and Victoria Park now regularly attract 15 to 20 groups, while outer suburbs might see only 5 to 10, showing demand concentrates in lifestyle locations.
By the way, we've written a blog article detailing what are the current rent levels in Perth.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Perth as of 2026?
Is for-sale inventory shrinking in Perth as of 2026?
As of early 2026, for-sale inventory in Perth has shrunk dramatically, with REIWA reporting around 2,000 properties listed compared to over 4,500 at the same time last year, representing a drop of more than 55%.
Perth's months-of-supply currently sits around 1.5 to 2 months based on sales pace, which is well below the 4 to 6 months that would indicate a balanced market, meaning buyers have very limited negotiating power.
The single most likely reason inventory is shrinking in Perth is that homeowners who locked in low fixed-rate mortgages in 2020 to 2021 are reluctant to sell and take on new, higher-rate loans, effectively keeping stock off the market.
Are homes selling faster in Perth as of 2026?
As of early 2026, the median time-to-sell for homes in Perth is around 9 days for houses (according to industry reports), which is extremely fast and suggests the market is speeding up even further as buyers compete for limited stock.
Compared to a year ago, Perth's days-on-market has likely stayed flat or dropped slightly, as the combination of fewer listings and persistent demand means well-priced homes in good suburbs are snapped up within days of listing.
Are new listings slowing down in Perth as of 2026?
As of early 2026, new listings in Perth are down around 25% year-on-year based on industry tracking, which is contributing to the stock shortage and keeping competition fierce among buyers.
The seasonal pattern for new listings in Perth typically sees a slowdown in December and January (summer holidays), but the current level of new stock is unusually low even accounting for seasonality, suggesting structural factors are at play.
The most plausible reason new listings are slowing in Perth is rate lock-in, where homeowners with low fixed-rate mortgages from 2020 to 2021 don't want to trade their cheap loan for today's higher rates, so they simply stay put.
Is new construction failing to keep up in Perth as of 2026?
As of early 2026, new housing construction in Perth is improving (with the WA Government reporting rising approvals and completions) but still falls short of demand, with industry estimates suggesting Perth needs roughly 20,000 to 25,000 new dwellings annually but is delivering closer to 15,000 to 18,000.
The recent trend in building approvals and completions in Perth is upward, with the WA Budget noting increased dwelling completions in 2025, though the pace is not yet fast enough to close the gap between supply and population-driven demand.
The single biggest bottleneck limiting new construction in Perth is the shortage of skilled tradespeople, particularly in framing, roofing, and finishing trades, combined with elevated material costs that make smaller builders cautious about starting new projects.
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Perth as of 2026?
Is resale liquidity strong enough in Perth as of 2026?
As of early 2026, resale liquidity in Perth looks strong for mainstream property types, with houses in established suburbs and well-located units typically selling within 2 to 4 weeks when priced realistically.
The median days-on-market for resale homes in Perth sits around 9 to 14 days for houses and 3 to 4 weeks for units, which compares favorably to the 30 to 45 days often considered a healthy liquidity benchmark for Australian capitals.
The property characteristic that most improves resale liquidity in Perth is location within a good school catchment or near public transport (especially rail stations), as these homes consistently attract multiple buyers and sell faster than equivalent homes in weaker locations.
Is selling time getting longer in Perth as of 2026?
As of early 2026, selling time in Perth has not lengthened and may have shortened slightly compared to a year ago, because the severe drop in listings (down 55% year-on-year) means buyers have fewer options and must act quickly.
The current median days-on-market in Perth is around 9 to 14 days for well-priced houses, with a realistic range from under 1 week for premium stock in top suburbs to 4 to 6 weeks for overpriced or compromised properties.
One clear reason selling time could lengthen in Perth would be if interest rates rise unexpectedly, because higher borrowing costs would reduce buyer budgets and force sellers to wait longer or cut prices to find a buyer.
Is it realistic to exit with profit in Perth as of 2026?
As of early 2026, the likelihood of selling with a profit in Perth is high for buyers who hold for at least 5 years, given the structural undersupply and forecasted continued growth of 4% to 8% annually over the medium term.
The estimated minimum holding period that most often makes exiting with profit realistic in Perth is around 3 to 5 years, which allows enough time for price growth to offset transaction costs and any short-term market fluctuations.
The estimated total round-trip cost drag in Perth (buying plus selling costs including stamp duty, agent fees, legal fees, and adjustments) is roughly A$50,000 to A$70,000 on a median-priced house (approximately US$32,000 to US$45,000 or EUR$30,000 to EUR$42,000), which means you need at least 6% to 8% price appreciation just to break even.
One clear factor that most increases profit odds in Perth is buying slightly below market value in suburbs with strong infrastructure investment (like the METRONET rail corridor), because these areas benefit from both general market growth and location-specific demand increases.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Perth, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why We Trust It | How We Used It |
|---|---|---|
| REIWA (Real Estate Institute of WA) | Peak WA real estate body using official Landgate transaction data. | We used it for Perth's latest median prices, rents, listing counts, and days-to-sell figures. We also used it to determine whether Perth is a buyer or seller market. |
| CoreLogic Home Value Index | Leading property data provider using hedonic valuation methodology. | We used it to track Perth's price momentum (monthly, quarterly, annual growth) and 5-year trends. We relied on it for dwelling value benchmarks and total return calculations. |
| PropTrack Housing Affordability Report | REA Group's research arm with transparent national affordability metrics. | We used it to frame Perth's affordability position versus other capitals. We also used it to explain why interstate buyers keep arriving in WA. |
| Reserve Bank of Australia | Australia's central bank with official monetary policy records. | We used it to set the interest rate backdrop affecting Perth borrowing power. We also used it to model rate risk scenarios for price forecasts. |
| APRA (Australian Prudential Regulation Authority) | Banking regulator whose rules directly control how much people can borrow. | We used it to explain why borrowing capacity won't suddenly expand (3% buffer remains). We also used it for credit tightening risk assessment. |
| SQM Research | Widely cited independent firm tracking Australian vacancies and rents. | We used it to gauge Perth's rental market tightness (vacancy around 0.7%). We cross-checked it against REIWA's rental data for consistency. |
| ABS Census (Greater Perth) | Official national statistics agency with authoritative income data. | We used it to anchor Perth household incomes for our price-to-income calculations. We adjusted the 2021 figures forward using ABS wage growth data. |
| WA Government State Budget | Official state publication summarizing housing activity and economic outlook. | We used it to cross-check housing supply claims with government data. We also used it for population growth and completion forecasts. |
| WA Government METRONET Announcement | Official government media release with specific project dates. | We used it to identify which suburbs will benefit from rail infrastructure. We linked the February 2026 Midland Station opening to demand catalysts. |
| Westport Program | Official WA program site for major freight and port infrastructure. | We used it to flag long-term employment and land-use changes around Kwinana. We treated it as a structural factor rather than a short-term trigger. |
| WA Treasury Transfer Duty | State authority explaining official duty assessment including foreign buyers. | We used it to calculate transaction costs and explain foreign-buyer friction. We avoided relying on unofficial stamp duty calculator websites. |
| OpenAgent Perth Market Data | Aggregates major bank forecasts and CoreLogic data in accessible format. | We used it to compile Westpac, NAB, and ANZ price forecasts for Perth. We cross-referenced their 2026 growth predictions against our own analysis. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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