Perth Property Prices Nearing $1 Million Mark
Perth's median property value stands at $940,635 according to Cotality's latest figures. This positions Perth as the third highest in Australia behind Sydney and Brisbane. Just seven years ago, the median house price was under $500,000.[1]
Experts predict sustained growth will push prices over $1 million by late 2026. According to REIWA, prices could rise by about 10 per cent or more next year.[1]
2026 Price Growth Forecasts
REIWA expects Perth property prices to increase at a similar pace to 2025 in 2026. Westpac forecasts 8 per cent growth for houses after 18.4 per cent in 2024.[2]
Canstar's Sally Tindall predicts the median could reach $1.1 million by end-2026, a $142,000 rise in 24 months. This aligns with the 10-year average growth of 4.4 per cent, yet 2026 remains almost double that.[1][2]
House prices: 8-10 per cent growth projected
- Entry-level prices rising fastest, per Cotality's Tim Lawless[1]
- Overall market moderating but still strong
Supply Constraints Driving Demand
Limited housing supply fuels Perth's strong price growth. REIWA's Suzanne Brown notes a small uptick in new completions, but substantial increases are needed.[2]
Properties lease quickly with a 2.2 per cent vacancy rate. Demand outpaces supply, especially near inner Perth.[2]
Houses vs Units: Shifting Preferences
Perth's median house price hit $810,000 with 8 per cent annual growth. Units outperformed at 13 per cent, reaching $565,000 median.[2]
Units are on track for 15 per cent growth by year-end, outpacing houses. Buyers turn to units for affordability in inner suburbs.[2]
- Units offer better value for first home buyers and investors
- House growth steady at 8 per cent forecast for 2026
- Emerging trend: units competing directly with houses
Rental Market Remains Tight
Median house rents rose to $700 in 2025 from $650 in 2024, per REIWA. Unit rents increased to $650 from $610.[2]
Annual growth of 2 per cent for houses and 2.1 per cent for units signals stabilisation. Yet tight supply near Perth means little rent relief.[2]
Investors benefit from favourable conditions with quick leasing and upward trends.
Challenges for First Home Buyers
First home buyers face seven-figure prices in 2026. Only 2.2 per cent of Greater Perth listings were under $500,000 and 10.3 per cent under $700,000 as of January 2025.[1]
Stamp duty exemptions apply up to $700,000, but rising prices erode relevance. REIWA calls for threshold increases in the May 2026 State Budget.[1]
- Larger deposits and loans now required
- Home Guarantee Scheme helps, but prices rise with it
- Entry-level market under strongest pressure
Population Growth and Demand Factors
Robust population growth sustains buyer demand. State incentives and the Home Guarantee Scheme attract more entrants.[2]
Affordability stretches, yet demand remains high. LJ Hooker predicts Perth to outperform other capitals in 2026.[3]
Interest Rates and Affordability
RBA rate hikes are possible in 2026 due to persistent inflation. Cotality warns higher rates could hold longer if inflation exceeds forecasts.[2]
Buyers must prioritise financial means amid rising costs. Experts urge caution to avoid debt traps.
Investment Opportunities in Perth
Perth offers strong returns for savvy investors despite challenges. Units in inner suburbs provide accessible entry points with high growth potential.[2]
We at Hillstone Property recommend focusing on your investment strategy. Tight rentals and population inflows support long-term gains.
- Target suburbs with supply shortages
- Leverage government concessions
- Monitor unit market for outsized returns
FAQ
<strong>Will Perth house prices hit $1 million in 2026?</strong>
Yes, predictions indicate the median could top $1 million by late 2026, with 8-10 per cent growth. Cotality and REIWA support this outlook.[1][2]
<strong>Is now a good time to buy in Perth?</strong>
Strong demand and limited supply favour buyers acting soon. Growth persists into 2026 despite moderating pace.[2]
<strong>What are the best Perth suburbs for investors?</strong>
Inner suburbs with tight rentals and unit growth shine. Focus on areas near employment hubs for demand.[2]
<strong>How tight is the Perth rental market?</strong>
Vacancy at 2.2 per cent with rents up 2 per cent annually. Conditions favour landlords.[2]
<strong>What government help exists for first home buyers?</strong>
Stamp duty exemptions up to $700,000 and Home Guarantee Scheme. Threshold hikes are urged by REIWA.[1]
Navigate Your Property Journey with Hillstone Property
Perth's property market heads into 2026 with promising yet challenging dynamics. At Hillstone Property, we guide buyers and investors through these market insights.
Book a free consultation today to tailor your strategy. Visit <a href="https://www.hillstoneproperty.com.au/contact">www.hillstoneproperty.com.au/contact</a>.