Perth’s property market boom: Population surge fuels demand
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Photo by Ryan Vand
Perth’s property market is experiencing an unprecedented boom, positioning itself as the strongest among Australia’s capital cities over the past five years. With property values surging by 19.5% over the 12 months to February 2026, and almost doubling since 2021, the city’s growth trajectory shows no signs of slowing down. Experts attribute this rapid expansion to an influx of new residents, both from overseas and interstate, which is driving demand and contributing to a tight housing market.
According to PropTrack data, Perth’s housing market has been on a remarkable upward trend, with a 98.3% increase in property values since 2021. The recent realestate.com.au Property Market Outlook anticipates that both Perth and Brisbane could see double-digit price growth again in 2026, with projections ranging from 7-10%. This optimism is largely fuelled by population growth, as explained by Angus Moore, Executive Manager of Economics at realestate.com.au.
“WA saw fairly substantial net outflows of population to other states during the middle and latter half of the 2010s, post-mining boom, which contributed to soft housing market conditions during that period,” Mr Moore noted. “That has since flipped, with strong net inflows since 2020. Perth has recorded very strong population growth in the past few years, supported by both overseas migration and net interstate migration.”
The tight housing supply in Perth is further exacerbated by a significant drop in the number of homes available for sale. The latest PropTrack listings report reveals a 30% decrease in homes for sale in January 2026 compared to the previous year, with Darwin being the only capital city with a sharper decline at 39%. This scarcity of available homes is set against a backdrop of forecasted population growth, with the Centre for Population predicting an additional 584,000 people will call Western Australia home by 2036.
Buyer’s agent Peter Gavalas of Resolve Property Solutions highlighted the importance of understanding the composition of this population growth in identifying high-growth areas. “While headlines focus on overall population growth, it’s actually the composition of new arrivals that matters far more for property investors and homebuyers trying to identify which suburbs will deliver strong returns,” Mr Gavalas said. “The data shows growth is heavily concentrated in Perth and skewed towards younger, migrant households. This fundamentally changes what types of properties are in demand and where that demand is strongest.”
As demand shifts, more buyers are seeking entry-level and mid-range homes, as well as units and townhouses. “These buyers – often younger migrants or first home buyers – aren’t looking for prestige homes in established suburbs,” Mr Gavalas explained. “We’re seeing sustained interest in properties under $850,000.”
Gavalas, who participated in the 2026 realestate.com.au Hot 100 panel, identified suburbs in Perth’s northwest as prime areas for new arrivals. “There’s good value around the Clarkson and Butler areas, and surrounds,” he said. “They are very close to the coast, close to the freeway, close to infrastructure, I think they stand out at the moment as pretty good value.”
He also noted that living by the coast is a popular aspiration among many buyers, with areas such as Rockingham and Baldivis in the city’s far south experiencing strong demand. Nollamara, located just 8km from both Perth’s CBD and the coast, offers value compared to its more expensive neighbours like Yokine and Dianella. “Nollamara offers a diverse range of dwelling types in units and houses, with some great options for first-home buyers, downsizers and families,” Gavalas said.
Travis Coleman, Head of WA at Belle Property, acknowledged that while the pace of growth may eventually slow, 2026 has already started with record sales and “incredibly high” home open numbers. “In a super competitive environment, people are trying to make their offers as attractive as possible, and that may include things like dropping certain conditions, not including finance clauses, going cash unconditional to make their offer more attractive to the vendor,” Coleman said.
Moore added that more affordable parts of Perth have been outperforming in recent years, consistent with the challenging housing affordability levels following rapid interest rate hikes in 2022 and 2023. “Interest rates have already been hiked this year, and further hikes are expected, so that demand for more-affordable areas is likely to persist,” he said.
With Perth’s property prices having more than doubled since 2020, the city’s real estate market continues to captivate investors and homebuyers alike, driven by a potent mix of population growth, housing scarcity, and evolving buyer preferences.