Perth Property Market Predictions for 2026

This article will give Perth property developers some insight into the key drivers that will continue to shape the western Australian property market for 2026. The Perth property market predictions for the year ahead are overall good ones; we’ve had quite a few years of positive growth and rising prices; be it for rent or end sales, and that shows no signs of slowing down any time soon. We are still chasing our tail on supply, with demand ever increasing. Last year, the Perth market sat up in the top 3 with Darwin and Brisbane as the top performer for growth. According to Cotality Data, we did almost 16 % average growth , with more to come this year. Analysts are tipping anything from that rate down to around 10% for 2026, depending on where rates go with the RBA this year and a few other external factors.

Even if we curtail overseas migration and arrivals, the economic prosperity of WA means there are plenty of interstate Australians relocating here all the time, for a range of reasons such as employment and higher wages, lifestyle and housing affordability. Whilst the medina price here has shot up significantly it still trials other capital cities and the wages here are better, so there is a roof over the head with more disposable income for those who choose to make WA home for the foreseeable future.

Lets explore some of the things we are watching that is driving our optimistic outlook, and gives us confidence that the Perth property market is a good place for developers to get down to business in 2026.

Slow progress on supply and demand correction

Just before easter last year, we started to see the number of available listings and rentals increase, it seemed that housing pressures eased a little. Courtesy of the federal government bringing forward their 5% deposit scheme however, we saw the market ( particularly the lower quartile) move with pace again by the start of October. We are now back to record low vacancies and sales stock , with stable and high rents across the board, no shortage of prospective tenants, and plenty of new buyers to keep driving up end values and sales prices. This is a pretty good scenario for the infill property developers of Perth.

Numbers going up in the right places

For the first time in living memory , we are seeing the end values and rents of properties in Perth go up at a faster rate than the cost to construct and deliver them. Construction price index is still going up but has slowed in rate of change, interest rates have come down a few basis points, and supply chain issues have improved remarkably. Its till not perfect, but it’s a lot bet than the early 2020’s where we were running out of everything and waiting 6 months to get scaffolding to a building site. Forecast job margin at start and the actual numbers at finish are both looking better than a few years, and this is good news for those developing property in WA.

Economy diversity and employment prospects

WA is not only about digging big holes in the ground. The AUKUS defence plan and associated spending is full steam ahead now. Henderson will be home to a new subsea technology and shipbuilding precinct , with the federal government pledging to spend $12 billion alone, as part of honouring the AUKUS defence pact. This is on top of the circa half a billion dollars already committee to master planning activities for the area. The Henderson precinct and associated subsea and defence activity will create more than 10,000 local jobs , adding a big boost to Western Australia’s economy, and revitalise the SW metropolitan corridor.

We also have a swath of new hospital and infrastructure spending announced by Roger Cooke, as well as ongoing mine and ming support industry expansion in WA driven by private industry. There will be new industries, new jobs, diversity of jobs, and a need of more housing, all of which is good news of property developers in Western Australia.

National markets polarising

in the lead up to Christmas , which is usually the busiest selling time of the year, the data shows that Melbourne and Sydney markets actually went into negative growth territory for the month of December. For Melbourne this is an ongoing trend, for Sydney it’s the first blip in a while, and we watch that trend with interest, to see if that market is finally ready for some retraction and a correction. Affordability issues underpinned by high entry prices, low supply and stalled rate cuts by the RBA have all contributed to lower buyer confidence in these markets and some cooling off. This personally makes us relieved, as it will be healthy if not every capital city in Australia is on an upward trend at once. This has never been the case historically and will proof us against a national shockwave if markets all correct downwards at once. We see the polarising as a natural, normal thing that will help put markets here back into balance and equilibrium. The immediate consequences now however are that more eyes, from both home owners and investors, will look west for housing stock. This is good news for Perth property developers.

Planning reforms gather steam

The housing minister John Carey has been quite aggressive pushing planning reform in the last few years, and that shows no sign of slowing. His mandate is more houses on ground no; to that end, he has overseen a blanket action of rezoning and administration takeover of prime land suitable for Transit Oriented Development in half a dozen local government areas, with more to follow. He is also looking at cutting more red tape, with the next round review of the R-Codes and its interface with local planning frameworks and policies being undertaken this year, in a bid to help speed up and simplify planning approvals processes. We watch this space with interest, as it should all be good news for property developers in WA.

Overall, there are lots of drivers and extenuating factors that lead us to believe 2026 will be a good year for property in WA, and several more to come at least. To discuss getting a property development underway in 2026 , we invite you to contact us and we can get in touch to discuss.