Perth Property Market Strong Growth, Changing Conditions and What Lies Ahead

As the 2025/26 financial year comes to a close, Perth remains one of Australia's standout property markets.

While many eastern states have experienced softer conditions, Perth has continued to benefit from strong population growth, limited housing supply and resilient buyer demand. However, there are clear signs that the market is entering a new phase, one where strategic pricing, suburb selection and buyer affordability are becoming increasingly important.

A Year of Continued Growth

Over the past 12 months, Perth property values have continued to rise, cementing the city's position as one of the strongest-performing capital city markets in Australia.

Strong migration into Western Australia, low housing stock levels and ongoing rental pressure have supported both owner-occupier and investor demand. Well-presented properties in desirable locations have continued to attract significant buyer interest, particularly in affordable and middle-market price brackets.

For sellers, conditions have remained favourable, with many properties still achieving strong results and relatively short days on market compared to historical averages.

Supply Remains the Key Story

Despite an increase in listings throughout 2026, housing supply remains below long-term norms.

Construction constraints, labour shortages and continued population growth have created an ongoing imbalance between supply and demand. While buyers may now have more choice than they did during the peak frenzy of 2024 and 2025, quality properties continue to attract strong competition.

This supply shortage remains one of the primary reasons Perth has avoided the significant market slowdowns seen elsewhere.

The Market Is Becoming More Selective

One of the biggest shifts during the second half of the financial year has been the emergence of a more selective market.

The days of almost every property attracting multiple offers within days are becoming less common. Buyers are taking more time to assess value, conduct due diligence and negotiate.

Properties that are well-presented, correctly priced and located in sought-after suburbs continue to perform strongly. Conversely, homes that are overpriced or require significant work are spending longer on the market and, in some cases, seeing price adjustments.

This is a sign of a maturing market rather than a declining one.

Affordability Is Driving Buyer Behaviour

As Perth property prices continue to rise, affordability has become a key consideration for many buyers.

We're seeing increased demand for:

• Units and apartments

• Villas and townhouses

• Entry-level homes

• Value-focused growth corridors

• Established suburbs with strong infrastructure and lifestyle appeal

Many first-home buyers and investors are shifting their focus toward more affordable options, creating a "two-speed market" where lower and middle price brackets continue to outperform premium segments.

Investor Confidence Remains Strong

Perth continues to attract investor attention from both Western Australia and interstate markets.

Compared with Sydney, Melbourne and Brisbane, Perth still offers relatively attractive entry prices and strong rental yields. Tight vacancy rates and ongoing rental demand continue to support investment activity, although investors are becoming more selective in their purchasing decisions.

Properties with strong rental appeal, low maintenance requirements and proximity to employment hubs remain highly sought after.

Looking Ahead to FY2026/2027

As we move into the new financial year, most indicators suggest Perth will remain a fundamentally strong market.

However, the pace of growth is likely to moderate compared to the extraordinary gains experienced over recent years. Future performance is expected to vary more significantly between suburbs, property types and price points.

Key factors to watch include:

• Housing supply levels

• Population growth and migration trends

• Interest rate movements

• Construction activity

• Rental market conditions

• Buyer confidence

While the market may not experience the rapid acceleration seen in previous years, Perth remains well-positioned for continued long-term growth.

The 2025/26 financial year has reinforced Perth's reputation as one of Australia's most resilient property markets.

For buyers, opportunities still exist, particularly in growth corridors and affordable market segments. For sellers, realistic pricing and professional presentation will become increasingly important as buyer choice improves.

As always, property remains a local market. Understanding suburb-level trends, buyer demographics and changing market conditions will be critical to achieving the best outcomes in the year ahead.

If you're considering buying, selling or investing in Perth property, now is the perfect time to seek expert advice and develop a strategy for the opportunities that FY2026/27 will bring.