PERTH PROPERTY MARKET // Q1 2026 UPDATE

As we move into the second quarter of 2026, Perth’s property market is telling a slightly different story to the fast-paced growth we saw throughout last year.

While the headlines nationally point to shifting conditions, Perth continues to stand out – remaining one of the strongest-performing markets in the country, even as momentum begins to ease.

So what’s really happening on the ground?

A Market Shifting – Not Slowing

Across Australia, the property market is transitioning. Global uncertainty – particularly ongoing conflict in the Middle East, combined with recent interest rate increases, is starting to weigh on buyer confidence. This is now clearly showing up in softer activity levels and more cautious behaviour.

That said, this isn’t a market in decline.

Prices are still rising overall, but at a slower, more uneven pace. Instead of the broad, consistent growth seen in late 2025, conditions are now varying more from suburb to suburb and price point to price point.

Perth Continues To Lead The Way

Despite this shift, Perth remains one of the standout performers nationally.

Alongside Darwin, Perth continues to record exceptionally strong year-on-year growth across both houses and units – outpacing many of the eastern states markets.

While cities like Sydney have already seen monthly price declines, Perth has remained resilient, supported by:

• Relative affordability compared to other capital cities
• Strong population growth
• Ongoing housing supply constraints

Even as monthly growth begins to soften, the bigger picture remains clear, Perth’s market fundamentals are still very strong.

Buyers Are More Selective

One of the biggest changes we’re seeing in early 2026 is in buyer behaviour.

Home open attendance has declined compared to this time last year, and buyers are taking more time to make decisions. Which means there’s less urgency, but certainly not less demand.

Buyers are still active. They’re just more considered.

For sellers, this means presentation, pricing strategy, and campaign execution matter more than ever.

Units Showing Strong Resilience

Another notable trend is the continued strength of the unit market.

Across the country, and here in Perth, units are proving more resilient than houses in the current environment. This is largely driven by:

• Affordability pressures
• First home buyer incentives
• Lower entry price points

As borrowing capacity tightens, more buyers are adjusting their expectations, keeping demand strong in this segment.

Housing Supply Remains An Issue

While short-term momentum is easing, the long-term challenge remains unchanged: supply.

Construction costs are still rising, driven by labour shortages and ongoing supply chain pressures. This is limiting the delivery of new housing and keeping stock levels tight.

The result? Even with softer price growth in the short term, upward pressure on property values is likely to persist over time.

Uncertainty Is The Key Driver

If there’s one word defining the property market right now, it’s uncertainty.

Interest rates, global conflict, inflation, and upcoming government policy decisions are all moving at once—often in different directions. This makes it harder for buyers and sellers to feel confident in their next move.

It’s not necessarily the conditions themselves that are slowing activity—it’s the lack of clarity around what comes next.

What Happens Next?

History shows that markets don’t stay uncertain forever.

As soon as there is more clarity – whether that’s around interest rates, inflation, or global events, confidence tends to return, and activity follows.

Importantly, demand hasn’t disappeared. In many cases, it’s simply delayed.

When that confidence lifts, we can expect:

• More buyers re-entering the market
• Increased transaction volumes
• Continued competition for well-presented homes

What This Means For Perth Sellers And Buyers

For sellers, this is a market that still rewards quality, well-presented homes, priced strategically – are continuing to attract strong interest.

For buyers, there is more breathing room than we’ve seen in recent years, but competition hasn’t disappeared entirely, particularly in sought-after coastal pockets.

Final Thought

Perth’s property market isn’t slowing – it’s normalising.

After a period of rapid growth, we’re seeing a more balanced, considered environment emerge. And while uncertainty is shaping short-term behaviour, the long-term fundamentals remain firmly in place.

With strong population growth, limited supply, and continued demand, Perth remains well-positioned as we move through 2026.