2025 has been a wild ride for Perth real estate, strong price gains, screaming demand, and a market that’s been hotter than your morning flat white. But what’s next? Here’s some predictions on what buyers, sellers, and investors should expect as we head into 2026.
The Big Picture for Perth in 2026
Here’s the honest summary, no fluff:
✅ Growth continues, but it’s measured, not manic.
✅ Low supply = ongoing competition for stock.
✅ Affordability constraints will increasingly influence buyer behaviour.
✅ Interest rate movements will be a key pulse-check for the whole market.
✅ Units and well-located suburbs could outperform some mainstream house markets.
Perth isn’t slowing down, it’s maturing. The era of crazy jumps is fading, but fundamentals are strong enough to support a resilient and sustainable 2026.
Lets take a deeper dive:
1. Growth Is Still On the Table, But Slower and Steadier
Perth’s market isn’t expected to stall, but the rapid price jumps of recent years are likely behind us. Forecasts point to moderate, single-digit growth in 2026, driven by strong fundamentals and ongoing demand. Prices should keep rising, just at a more sustainable pace. Tight listings will continue supporting values, though affordability limits will start to cap how quickly prices can climb.
2. Inventory Still Tight, Low Supply = Upward Pressure
Low stock remains a major factor shaping the market. With listings sitting well below long-term averages, buyers will still be competing over limited homes, particularly in suburbs with strong lifestyle appeal and low turnover. This shortage is expected to keep early-to-mid 2026 conditions competitive, with well-presented homes attracting strong results.
3. Affordability Ceilings Starting to Bite
After several years of solid growth, more buyers are now hitting borrowing limits. By late 2026, analysts expect this to slow price momentum as affordability becomes a genuine constraint. This won’t cause prices to fall, but it may reduce the intensity of buyer activity as budgets stretch to their maximum.
4. Interest Rates, The Wild Card
Possible rate increases in 2026, or even a lack of further cuts, could influence borrowing power and buyer confidence. Higher or sustained rates typically cool demand and temper price growth, pushing some buyers toward lower price brackets and more cautious decision-making.
5. Different Segments, Different Stories
Market performance will vary across Perth. Units may outperform houses thanks to relative affordability and strong rental demand. Lifestyle-driven suburbs with good transport and schools should remain popular with families and first-home buyers. Investors are expected to stay active where rental yields remain strong and the numbers stack up.
