Following two years of rapid price increases, Perth's real estate landscape has noticeably slowed against a backdrop of Capital Gains Tax changes, high interest rates and the resulting national housing market downturn. As prices fall over east, Perth has seen prices more or less hold at historic highs across the West Australian property market. Results largely hold firm across residential and commercial property segments even as the pace of gains eases.
So what 2026 West Australian property market trends can investors and property developers expect?
Residential property trends
Western Australian house prices have held their ground while several eastern states have softened, with sellers here still benefiting from buyer demand, sustained population growth and a persistent structural housing shortage. Perth has held its position as a resilient investment destination, with local and interstate buyers continuing to recognise the long-term value of investing in WA even as sentiment elsewhere has cooled.
Easing growth pace and market moderation
While Perth recorded 12 consecutive quarters of house price gains and 10 consecutive quarters for units, the rate of growth is visibly moderating. According to Dr Nicola Powell, quarterly house price growth has dropped to roughly one-third of the pace seen in previous quarters, with annual gains easing to approximately 10.4%, the slowest pace in over two years.
Even as Perth approaches what Dr Powell describes as a “line in the sand” $1m median house price (currently sitting at $981,259), the market is clearly shifting from explosive acceleration into a more tempered growth phase.
With financial conditions settling, residential property values look set to maintain their solid foundation through 2026 and into 2027.
Perth property price trends
Perth property prices are still at record levels. According to official REIWA Market Data, the median house sale price reached $930,000 (up 16.3% over the 2025-26 financial year), while the median unit sale price recorded a 21.8% surge to reach $670,000.
The state government continues to deliver initiatives aimed at addressing the housing shortage, but new residential completions are still falling short of the volume required to keep pace with population expansion. This undersupply is equally pronounced in the rental sector, where ongoing migration continues to absorb available rentals.
Scarcity of existing properties
The scarcity of existing dwellings is still a defining Western Australian property market trend. Annual home completions continue to lag behind National Housing Accord targets, creating a cumulative deficit across both owner-occupier and tenant sectors.
Subdivision is one of the most popular and effective ways to address the shortfall, with several local councils across Greater Perth loosening subdivision requirements and updating local planning schemes in established urban zones.
Increased investor activity
Ongoing supply constraints present significant opportunities for investors. According to REIWA’s 2025-26 rental reporting, Perth’s median weekly house rent has reached $750/week (a 9.5% annual increase), while median unit rents sit at $700/week (up 7.7%).
Data from the Australian Bureau of Statistics (ABS) lending indicator statistics highlights steady loan commitments to property investors as buyers seek out Perth’s combination of rental income and capital growth. Reserve Bank of Australia (RBA) Governor Michele Bullock has noted that broader housing market activity remains closely tied to underlying supply pressures and financial conditions.
The impact of this sustained demand is clear. A record 136 Perth suburbs now belong to the million-dollar club (suburbs with a median house price between $1m and $1.99m), alongside 31 premium suburbs recording median prices over $2m.
Rental market still tight
The rental market is still tight across Perth, with tenant demand maintaining upward pressure on weekly rents. Reports from the Bankwest Curtin Economics Centre (BCEC) highlight that housing costs consume a massive percentage of average household income across WA.
With weekly rents continuing to deliver strong returns, property investment and multi-unit development are still very attractive strategies for building long-term equity.
Migration
A big driver of WA’s market performance is sustained population growth. Western Australia’s population surpassed 3.07m, leading the nation in population expansion with a 2.2% to 2.4% annual growth rate according to ABS population statistics.
This sustained population growth remains one of the strongest in the country, driven by both overseas migration and interstate migration.
Changing priorities for living situations
Evolving buyer budgets and changing lifestyles are driving some clear shifts in living situations:
Price of units catching up
Units and medium-density housing have seen significant growth as buyers are looking for well-located, affordable alternatives to standalone houses. With units recording 21.8% annual growth to reach a $670,000 median, the sector has outperformed houses as downsizers, first home buyers and investors compete for urban infill.
REIWA President Suzanne Brown noted that the strong rise in house values has redirected buyer demand toward the unit and townhouse market, which offers lower-maintenance alternatives in attractive suburbs.
Increased popularity of mixed-use
Mixed-use developments (combining retail, office and residential spaces are an increasingly prominent commercial and residential trend. These developments create community hubs that foster activity throughout the day and night.
Successfully executing a mixed-use project needs a balance between commercial viability and residential amenities. Partnering with an experienced mixed-use developer makes sure every feature complements the overall build and maximises returns.
Rise of multi-generational living
Multi-generational living is continuing to gain momentum across Perth and Australia. This trend is driven by young adults staying in the family home longer to save for a deposit, as well as extended families pooling capital to buy larger properties.
Data from the Household, Income and Labour Dynamics in Australia (HILDA) Survey Reports confirms a long-term upward trend in young adults staying with parents, a preference also popular among many migrant families accustomed to shared household structures.
Government incentives to invest
Government programs continue to support market participation for both individual buyers and property developers aiming to bring new housing stock to market.
The First Home Owners Grant
The First Home Owner Grant offers a $10,000 one-off payment to eligible first home buyers building or purchasing a brand new home. Eligible buyers can also benefit from transfer duty (stamp duty) concessions and specialised lending options through Keystart Home Loan, helping lower the barrier to entry for new builds.
RBA interest rate stance
With the Reserve Bank of Australia keeping the official cash rate at 4.35% (at the time of writing), market participants have adjusted to a more predictable interest rate environment. Stable borrowing conditions provide greater certainty for investors calculating serviceability and assessing feasibility models for upcoming development builds.
Commercial property market trends
Commercial property in Perth continues to perform strongly, with steady demand for suburban office space and industrial premises as retail slows. For business owners and investors, constructing purpose-built commercial assets is still an attractive alternative to leasing.
Opportunities for developers
Perth’s expanding population and strong economy make the commercial sector a compelling space for property development. In addition to local investor activity, Western Australia receives plenty of project enquiries from eastern state investors looking for higher yields.
Investors are still focused on strategic suburban sites, properties with secure tenancies and high-exposure retail hubs.
Retail over office space
Population growth directly increases local customer bases, driving demand for retail services and suburban business locations. Population inflows create momentum across lifestyle precincts as new businesses establish themselves. Perth’s suburban retail market has recorded a strong median sales price per square metre, making retail and service precinct builds a primary target for commercial developers.
Tax benefits
Investing in commercial property offers several tax advantages to help offset capital expenditure:
- Depreciation: Property owners can claim tax deductions for building depreciation (capital works) as well as plant and equipment wear and tear.
- Capital Gains Tax (CGT) discount: Holding a commercial asset for more than 12 months may qualify investors for significant CGT discounts upon sale.
- Deductible expenses: Most ongoing ownership and management expenses, including council rates, insurance and maintenance costs, are tax deductible.
Property investors should consult a qualified tax specialist to make sure they’re maximising all eligible deductions for their specific entity structure.
Navigating The Perth Property Landscape
The 2026 WA property market offers a comparatively stable setting across both the residential and commercial sectors, at a time when confidence in other states remains mixed. While residential growth is going from rapid acceleration to a more stable phase, supply shortages, population inflows and high rents continue to support multi-unit, infill and multi-generational developments.
Simultaneously, borrowing conditions and significant tax advantages are driving interest into suburban commercial and mixed-use assets.
Capitalising on these market dynamics needs a delicate balance of site selection, regulatory compliance and feasibility modelling to make sure your project is structured for success and the maximum long-term yield.
Partner With Novus Projects For Your Next Development
We’re an experienced Western Australian property developer with over 30 years of industry experience spanning both the residential and commercial sectors. Having navigated Perth’s property landscape through multiple market cycles, we understand how to maximise your returns under any market condition.
Whether you require end-to-end management or targeted advice at specific project stages, our expert team can offer guidance from inception to completion.