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
Perth property prices have risen faster than any other Australian capital city over the past five years, and the market remains tight heading into 2026.
Whether you're a first-time buyer, an investor, or simply curious about where Perth's housing market is headed, this guide breaks down the latest numbers and forecasts in plain language.
We constantly update this blog post with fresh data on current housing prices in Perth and expert predictions for the years ahead.
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.
Insights
- Perth dwelling values grew by roughly 82% over the past five years, the strongest performance of any Australian capital city.
- Units in Perth (including villas and townhouses) have outpaced houses recently, with units up around 20% compared to 16% for houses in 2024-25.
- The Perth property market has around 54,000 new residents arriving each year, creating constant demand pressure on a limited housing supply.
- Western Australia has the fastest population growth rate in Australia at 2.2% annually, according to ABS data from June 2025.
- Perth's median house price of around A$950,000 remains significantly more affordable than Sydney or Melbourne, attracting interstate buyers.
- The RBA cash rate sits at 3.60% as of late 2025, and rate expectations will heavily influence Perth's 2026 price trajectory.
- Suburbs along the new METRONET rail lines, like Midland, Bayswater, and Bassendean, are expected to see above-average growth in 2026.
- Perth rental vacancy rates remain below 2%, keeping pressure on both rental yields and house prices across the metro area.
- Price growth is expected to slow from double digits to a more sustainable 5% to 8% range in 2026 as affordability limits bite.
What are the current property price trends in Perth as of 2026?
What is the average house price in Perth as of 2026?
As of early 2026, the median house price in Perth is approximately A$950,000 (around US$600,000 or €550,000), making it one of the more affordable capital cities in Australia compared to Sydney or Melbourne.
When it comes to price per square meter, Perth houses average around A$4,800 per sqm (roughly US$3,000 or €2,750), while units such as villas, townhouses, and apartments tend to be higher at about A$6,600 per sqm (around US$4,150 or €3,800) because buyers pay a premium for location and convenience.
For most Perth property purchases, a realistic price range that covers about 80% of transactions falls between A$550,000 and A$1,400,000 (roughly US$350,000 to US$880,000 or €320,000 to €810,000), depending on whether you're looking at an outer-suburb unit or a family home in a sought-after school catchment.
How much have property prices increased in Perth over the past 12 months?
Perth property prices increased by approximately 15% to 18% over the past 12 months, making it one of the strongest-performing capital city markets in Australia during this period.
Across different property types in Perth, the range of price increases varied from around 13% to 20%, with units (including villas and townhouses) generally seeing stronger growth than detached houses as buyers sought more affordable entry points.
The single most significant factor driving this price movement in Perth has been the persistent shortage of available properties for sale, combined with strong population growth from interstate and overseas migration that has kept buyer competition fierce throughout the year.
Which neighborhoods have the fastest rising property prices in Perth as of 2026?
As of early 2026, the top three neighborhoods with the fastest rising house prices in Perth are Bateman, West Leederville, and Ardross, all located in desirable middle-ring areas with strong school catchments and established amenities.
Bateman recorded approximately 37% annual price growth for houses, followed by West Leederville at around 34% and Ardross at roughly 34%, though it's worth noting these figures can vary depending on the specific time period and data source used.
The main demand driver explaining why these Perth suburbs are experiencing such rapid growth is a combination of limited available stock, proximity to quality schools, and relatively better affordability compared to ultra-premium riverside suburbs like Dalkeith or Peppermint Grove.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Perth.
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.
Which property types are increasing faster in value in Perth as of 2026?
As of early 2026, the ranking of property types by value appreciation in Perth places units (including villas and townhouses) first, followed by detached houses, with apartments in high-rise buildings showing more varied performance depending on location.
The top-performing property type in Perth, units overall, recorded approximately 20% annual appreciation, outpacing houses which grew at around 16% over the same period according to REIWA data.
The main reason units are outperforming houses in Perth is that affordability constraints are pushing more buyers toward lower-priced entry points, and well-located villas and townhouses in established suburbs offer lifestyle benefits at a more accessible price than detached homes.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much should you pay for a house in Perth?
- How much should you pay for an apartment in Perth?
- How much should you pay for lands in Perth?
- How much should you pay for a townhouse in Perth?
What is driving property prices up or down in Perth as of 2026?
As of early 2026, the top three factors driving Perth property prices are the chronic shortage of homes for sale, strong population growth fueled by interstate and overseas migration, and interest rates that have eased from their 2024 peaks but remain elevated.
The single factor with the strongest upward pressure on Perth property prices is the persistent undersupply of housing, with active listings sitting well below historical averages and properties often selling within days of being listed.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Perth here.
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What is the property price forecast for Perth in 2026?
How much are property prices expected to increase in Perth in 2026?
As of early 2026, Perth property prices are expected to increase by approximately 5% to 8% over the calendar year, representing a slowdown from the double-digit growth seen in 2024 and 2025.
The realistic range of forecasts from different analysts for Perth property price growth in 2026 spans from a conservative 5% to a more optimistic 10%, depending on how interest rates and construction activity evolve throughout the year.
The main assumption underlying most price increase forecasts for Perth is that housing supply will remain constrained while population growth continues, meaning demand will still outstrip the number of homes available even if buyer activity moderates somewhat.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Perth.
Which neighborhoods will see the highest price growth in Perth in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Perth include Midland, Bayswater, and Bassendean along the rail corridor, as well as inner affordable suburbs like Osborne Park and Yokine where buyers are trading down from pricier areas.
The projected price growth for these top Perth neighborhoods ranges from 8% to 12% in 2026, potentially outperforming the broader metro average due to specific infrastructure improvements and relative affordability.
The primary catalyst driving expected growth in these neighborhoods is the completion of major METRONET rail projects, including the new Midland Station opening in February 2026, which significantly improves commute times and accessibility to the Perth CBD.
One emerging neighborhood in Perth that could surprise with higher-than-expected growth is Doubleview on the coast, which offers beach lifestyle at prices below nearby Scarborough and is attracting both owner-occupiers and investors seeking rental yields.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Perth.
What property types will appreciate the most in Perth in 2026?
As of early 2026, the property type expected to appreciate the most in Perth is well-located units, particularly villas and townhouses in established middle-ring suburbs with good transport links and amenities.
The projected appreciation for top-performing units in Perth is approximately 7% to 10% in 2026, slightly outpacing the 5% to 8% expected for detached houses as affordability pressures continue pushing buyers toward lower price points.
The main demand trend driving appreciation for units in Perth is the combination of first-home buyers stretching their budgets and downsizers seeking low-maintenance living, both groups competing for the same limited stock of quality villas and townhouses.
The property type expected to underperform in Perth during 2026 is premium blue-chip houses in suburbs like Peppermint Grove and Dalkeith, where ultra-high price points limit the buyer pool and make these properties more sensitive to interest rate movements.
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.
How will interest rates affect property prices in Perth in 2026?
As of early 2026, the impact of interest rates on Perth property prices is expected to be stabilizing rather than disruptive, with the RBA cash rate at 3.60% following cuts during 2025 that improved borrowing capacity for buyers.
The current benchmark cash rate is 3.60% and most analysts expect mortgage rates to hold relatively steady in 2026, though there is uncertainty about whether further cuts will occur or if inflation concerns could push rates back up.
A 1% change in interest rates typically affects Perth property affordability significantly: a 1% rate drop can increase borrowing capacity by roughly 10%, while a 1% increase can reduce it by a similar amount, directly impacting how much buyers can pay for homes.
You can also read our latest update about mortgage and interest rates in Australia.
What are the biggest risks for property prices in Perth in 2026?
As of early 2026, the top three biggest risks for Perth property prices are an unexpected rise in interest rates if inflation proves sticky, a significant increase in housing construction that eases supply constraints, and a potential pullback from investors if lending conditions tighten.
The single risk with the highest probability of materializing in Perth is an inflation surprise that keeps the RBA from cutting rates further or even forces a rate increase, which would immediately reduce buyer borrowing capacity and dampen price growth.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Perth.
Is it a good time to buy a rental property in Perth in 2026?
As of early 2026, the overall assessment is that it remains a reasonable time to buy a rental property in Perth, though buyers need to be more selective about location and property type than they were during the boom years of 2023-2024.
The strongest argument in favor of buying a rental property now in Perth is that vacancy rates remain extremely tight at around 2%, rental yields are solid compared to east coast capitals, and population growth shows no signs of slowing down.
The strongest argument for waiting before buying a rental property in Perth is that prices have already risen significantly, meaning yields have compressed somewhat, and there is a risk that rate uncertainty could create buying opportunities later in the year if sentiment softens.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Perth.
You'll also find a dedicated document about this specific question in our pack about real estate in Perth.
Buying real estate in Perth can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Perth?
What is the 5-year property price forecast for Perth as of 2026?
As of early 2026, the estimated cumulative property price growth in Perth over the next 5 years is approximately 25% to 40%, which would take the median dwelling value from around A$930,000 to between A$1.16 million and A$1.30 million by 2031.
The range of 5-year forecasts for Perth spans from a conservative scenario of about 25% total growth (assuming affordability bites harder and construction catches up) to an optimistic scenario of 40% or more if supply remains constrained and population growth stays strong.
This translates to a projected average annual appreciation rate of roughly 4.5% to 7% per year over the next 5 years in Perth, which is consistent with long-term historical trends for well-located Australian property.
The key assumption most forecasters rely on for their 5-year Perth property price predictions is that population growth will continue to outpace new housing supply, keeping the fundamental demand-supply imbalance in place even as growth rates moderate from recent highs.
Which areas in Perth will have the best price growth over the next 5 years?
The top three areas in Perth expected to have the best price growth over the next 5 years are the Midland-Bayswater-Bassendean rail corridor, inner affordable suburbs like Osborne Park, Yokine, and Shenton Park, and coastal lifestyle nodes like Doubleview and Scarborough that aren't yet in the ultra-premium bracket.
The projected 5-year cumulative price growth for these top-performing Perth areas ranges from 35% to 50%, potentially outperforming the broader metro average by 10 to 15 percentage points due to infrastructure improvements and relative value.
This aligns with our shorter-term forecast but extends the logic: suburbs benefiting from METRONET rail access will continue to re-rate as new transport habits form and amenity hubs mature around the stations.
A currently undervalued area in Perth with the best potential for outperformance over 5 years is the Cannington-Beckenham corridor, which benefits from the elevated Armadale Line transformation but hasn't yet seen the price surge of more talked-about suburbs.
What property type will give the best return in Perth over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Perth is well-located villas and townhouses in established middle-ring suburbs, combining solid capital growth with relatively attractive rental yields.
The projected 5-year total return for this top-performing property type in Perth is approximately 45% to 65% when combining capital appreciation of 30% to 45% with cumulative rental income, assuming typical gross yields of around 4% to 5% annually.
The main structural trend favoring villas and townhouses over the next 5 years in Perth is the convergence of downsizer demand (baby boomers seeking low-maintenance living) and first-home buyer demand (younger buyers priced out of houses), both competing for the same limited stock.
For buyers seeking the best balance of return and lower risk over 5 years in Perth, detached houses in established family suburbs with good schools, river or beach access, and transport links offer more stability and broader resale appeal even if peak returns are slightly lower.
How will new infrastructure projects affect property prices in Perth over 5 years?
The top three major infrastructure projects expected to impact Perth property prices over the next 5 years are the completed METRONET rail network (including the new Midland Station opening February 2026), ongoing road capacity upgrades funded in the WA State Budget, and urban renewal projects around new rail stations that will create activity centres and amenities.
The typical price premium for properties near completed infrastructure projects in Perth ranges from 10% to 20% compared to similar properties without the same access, though this premium tends to be priced in gradually over 2 to 3 years as travel habit changes become established.
The specific Perth neighborhoods that will benefit most from these infrastructure developments include Midland, Bayswater, Bassendean, and Ellenbrook along the new rail lines, as well as suburbs along the Armadale Line corridor like Victoria Park, Cannington, and Byford that have received station upgrades.
How will population growth and other factors impact property values in Perth in 5 years?
The projected population growth rate for Western Australia is approximately 2.2% annually (the fastest in Australia), and this sustained growth is expected to add significant upward pressure to Perth property values over the next 5 years by creating consistent demand that construction cannot easily match.
The demographic shift that will have the strongest influence on Perth property demand is the influx of working-age adults and young families from interstate and overseas, who typically need family-sized housing in suburbs with good schools and commute access.
Migration patterns, both interstate arrivals from expensive east coast cities and international arrivals attracted by WA's job opportunities, are expected to sustain Perth property demand and keep vacancy rates low, directly supporting both house prices and rental growth.
The property types and areas in Perth that will benefit most from these demographic trends are family homes in quality school catchments (middle-ring established suburbs), and affordable entry-level units and townhouses in areas with strong transport links for younger buyers and renters.
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.
What is the 10 year property price outlook in Perth?
What is the 10-year property price prediction for Perth as of 2026?
As of early 2026, the estimated cumulative property price growth in Perth over the next 10 years is approximately 45% to 75%, which would take the median dwelling value from around A$930,000 to between A$1.35 million and A$1.63 million by 2036.
The range of 10-year forecasts for Perth spans from a conservative scenario of about 45% total growth (assuming occasional corrections and moderate periods) to an optimistic scenario of 75% or more if Perth continues to attract strong migration and supply remains persistently tight.
This translates to a projected average annual appreciation rate of roughly 3.8% to 5.8% per year over the next 10 years in Perth, which accounts for inevitable cycles of faster and slower growth that occur over such a long timeframe.
The biggest uncertainty factor in making 10-year property price predictions for Perth is the future path of interest rates, as changes in the cost of borrowing can dramatically shift what buyers can afford and therefore what homes are worth at any given time.
What long-term economic factors will shape property prices in Perth?
The top three long-term economic factors that will shape Perth property prices over the next decade are sustained population growth driven by migration, the evolution of interest rates and borrowing costs, and the expansion of infrastructure that changes which suburbs are desirable and accessible.
The single long-term economic factor that will have the most positive impact on Perth property values is continued strong migration into Western Australia, as new residents create consistent housing demand that outstrips the ability of the construction sector to supply new homes.
The single long-term economic factor that poses the greatest structural risk to Perth property values is a prolonged period of high interest rates, which would reduce borrowing capacity and potentially create a ceiling on how much buyers can pay regardless of demand.
You'll also find a much more detailed analysis in our pack about real estate in Perth.
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 it's authoritative | How we used it |
|---|---|---|
| Australian Bureau of Statistics (ABS) - Total Value of Dwellings | Australia's official statistics agency with the cleanest national housing value benchmark. | We used it to anchor official Perth house and unit medians. We cross-checked private indexes against these figures. |
| ABS - National, State and Territory Population | The official source for population growth, a major housing demand driver. | We used it to explain Perth demand from migration. We linked population trends to housing supply pressure. |
| Reserve Bank of Australia - Cash Rate Target | The primary official record of Australia's policy interest rate. | We used it to describe the interest rate backdrop. We connected rate settings to buyer borrowing capacity. |
| REIWA - Market Insights | The peak real estate body in WA with transparent market summaries. | We used it to identify top-performing Perth suburbs. We distinguished houses from units using REIWA definitions. |
| Cotality (formerly CoreLogic) - Home Value Index | One of Australia's most widely cited housing price indexes. | We used it for current Perth dwelling values and annual growth. We cross-checked with PropTrack and ABS. |
| PropTrack - Home Price Index | A major national index from REA Group with large listing signals. | We used it to quantify Perth's 12-month change. We triangulated it with Cotality and ABS medians. |
| WA Treasury - Housing Market Page | A WA government source compiling key housing indicators. | We used it as a government cross-check on prices. We kept the narrative Perth-specific rather than generic. |
| Domain - Forecast Report Hub | A long-running, widely cited Australian housing research publisher. | We used it to frame forecast ranges. We triangulated forecasts with KPMG and index momentum. |
| KPMG - Residential Property Market Outlook | A top-tier consultancy producing structured property forecasts. | We used it to ground medium-term expectations. We treated it as forecast input and cross-checked against indexes. |
| WA Government - METRONET Announcements | Primary government announcement for major transport projects. | We used it to explain infrastructure-linked demand. We paired it with specific suburb examples. |
| WA State Budget 2025-26 - Transport | The official budget site describing funded projects and timelines. | We used it to support the 5-year view of infrastructure. We connected it to specific corridors. |
| REIWA - Market Forecast Update | WA's peak body forward-looking commentary with local price metrics. | We used it to frame the post-boom moderation story. We treated it as one forecast voice among several. |
| ABC News - Property Reporting | National news outlet referencing Domain's dataset. | We used it only as a pointer to Domain's forecast messages. We relied on primary sources for actual data. |
| WA Treasury - Population Summary | Government source for WA-specific population updates. | We used it to confirm state-level growth rates. We linked population dynamics to housing demand. |
| ABS - Population Projections | Official long-term population forecasts for scenario planning. | We used it to inform 5 and 10 year outlooks. We applied different growth scenarios to price projections. |
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If you want to go deeper, you can read the following: