Perth set to lead Australia’s property market in 2026
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Gold warm sun light litting CBD of Perth city as seen from Kings park with green trees and highway entering the city.
Perth, often characterised as one of the most isolated capital cities globally, is defying geographical odds by emerging as Australia’s frontrunner in property price growth. According to recent forecasts, the city is set to continue its upward trajectory into 2026, driven by a combination of population inflows, tight rental conditions, and a persistent undersupply of housing.
Data from PropTrack reveals that home prices in Perth have surged by 15.5% over the year to November, reaching a median price of $930,000. This growth has nearly doubled the property values in the city over the past five years. The latest Property Outlook Report by realestate.com.au predicts that Perth, alongside Brisbane, will lead the market in the upcoming year, with anticipated price increases ranging from 7-10%.
Anne Flaherty, senior economist at realestate.com.au and co-author of the report, highlighted the underlying factors contributing to this trend. “What we’re seeing in [Brisbane and Perth] is that the rate at which new homes are being built is not keeping up with the rate at which the population is rising. These were also the fastest performing markets in 2025 and that momentum is likely to continue into next year,” she explained. Flaherty further noted, “The most probable path is for Perth to keep outperforming the other capitals, but with price growth stepping down from the exceptionally strong pace recorded in 2024 and 2025.”
Sean Hughes, a Perth real estate agent and director of Haiven Property, provided insights into the local market dynamics. While acknowledging the city’s robust property market, Hughes cautioned that it wasn’t “all beer and skittles,” as some properties are taking longer to sell. “I just don’t see this being a market where people are buying anything and everything just for the sake of it,” Hughes remarked. He added that generic family homes in popular suburbs like Carine could expect significant interest, with “hordes of people lining up and 16 offers in the first weekend.”
However, Hughes pointed out that more unique or bespoke properties might face longer selling periods. “I suppose I see the Perth market is still quite two speed. Basically, one is a white hot pace, like you are getting a speeding fine,” he said, describing the contrasting market speeds. “The other is that you can speed between the speed bumps, but at some point you’ve got to go 50km.”
The scarcity of listings is a significant factor behind Perth’s property boom. PropTrack data indicates that active listings in Perth, Brisbane, and Adelaide are down approximately 45% from pre-pandemic levels. Suzanne Brown, President of the Real Estate Institute of WA, emphasised the impact of this trend. “We have continuing population growth, we have new home buyers entering the market due to the 5% deposit under the Home Guarantee Scheme; and we simply do not have the housing stock to meet the demand,” she said. Brown noted that many homeowners are hesitant to list their properties due to concerns about finding a new place to live, further exacerbating the shortage.
In the face of limited options, Ray White Whiteman & Associates Mirrabooka sales associate Justin Merendino reported an average turnaround of just seven days from listing a home to receiving an offer. He attributed this rapid pace to the lack of available stock. “The only way it will go down and longer days on market is more stock. How do we get more stock?” Merendino questioned, suggesting that increased construction is necessary to provide more choices for buyers.
Despite the competitive market, Merendino maintains a policy against off-market sales, arguing that such practices limit opportunities for buyers and sellers alike. “As an agent and my sellers agree with me, buyers get annoyed because they haven’t even been allowed to do a walk through the house if you do off-market,” he explained.
Xceed Real Estate’s chief operating officer, Jonathan Marlow, observed a rise in off-market sales due to historically low listing levels. “It’s very hard to argue against it for every deal,” Marlow said, noting that sellers often receive multiple offers even without formally listing their properties. However, he warned that this trend contributes to a “lack of visibility” in the market, deterring potential sellers and perpetuating the listings shortage. “So it’s like a self-fulfilling prophecy,” Marlow concluded. “We’re not certain we can confidently say where the end to this is.”
The demand for property remains strong across Perth’s suburbs, with Marlow noting significant buyer interest in areas such as Alkimos, Balcatta, Stirling, and Innaloo. Sean Hughes also identified pockets of Fremantle, Applecross, and South Perth as areas of high demand, along with coastal regions like Trigg and North Beach.
Looking ahead, Hughes doesn’t foresee significant improvements for buyers in the near future. “Unfortunately, I see that the market is going to continue to be strong,” he said, citing the persistent undersupply of housing and slow construction rates. With tight rental conditions and rising interest rates, Hughes observed that some buyers are experiencing “buyer fatigue,” as the cost of renting approaches that of purchasing a property. “If they’re going to be spending $50,000 to $100,000 a year in rent, even if they’re spending less, say, $30,000 to $70,000 in the more affordable bracket of rent per year, they are better off paying off their own mortgage on that,” he noted.