A Capital City Turnaround

After years of slower growth following the mining boom, Perth has rapidly transformed into one of Australia’s strongest performing property markets. Over the past five years, the Western Australian capital has recorded some of the most significant price increases among the country’s capital cities, driven by rising demand and population growth. According to PropTrack data, property values in the city climbed 19.5% in the 12 months to February 2026, with home prices almost doubling by 98.3% since 2021.

Market forecasts suggest the momentum is far from over. The latest realestate.com.au Property Market Outlook predicts that Perth—along with Brisbane—could still record price growth of roughly 7–10% in 2026, highlighting the city’s continued strength in the national housing market.

Population Growth Driving Demand

A major driver behind the city’s property surge is population growth. Western Australia experienced significant population losses to other states during the late 2010s, which contributed to a softer housing market at the time. However, that trend has reversed dramatically in recent years. Since 2020, both overseas migration and interstate arrivals have boosted population numbers, increasing housing demand across the Perth metropolitan area.

Looking ahead, forecasts from the Centre for Population indicate that Western Australia could gain around 584,000 additional residents by 2036, suggesting housing demand will remain strong for the foreseeable future.

Limited Supply Intensifies Competition

While demand has surged, the number of properties available on the market remains limited. Listings data shows that homes for sale in Perth were about 30% lower in January 2026 compared with the same time a year earlier, tightening supply and placing upward pressure on prices.

This shortage has created an increasingly competitive buying environment, with some buyers making stronger offers by increasing deposits or removing conditions in order to secure a property. Experts say this reflects the urgency felt by buyers trying to enter the market while prices continue to rise.

Affordable Suburbs Attract Buyers

Industry professionals note that many new buyers entering the Perth market are searching for entry-level and mid-range homes, including townhouses and apartments. Properties priced below $850,000 are seeing particularly strong interest, especially among first-home buyers and migrant households.

Suburbs in the city’s north-west corridor, including areas such as Clarkson, Butler and Banksia Grove, are gaining popularity due to their affordability, proximity to the coast, and access to major infrastructure. Meanwhile, suburbs in the south like Rockingham and Baldivis are also attracting attention for offering relatively affordable homes near lifestyle amenities.

Strong Growth Likely to Continue

While property experts expect the pace of growth to eventually moderate, early signs suggest 2026 has already started with strong sales activity and high attendance at home inspections. The city’s ongoing population growth, limited housing supply, and relatively affordable property compared with other Australian capitals continue to underpin market demand.

With these factors in play, Perth’s property market appears set to remain a key player in Australia’s housing landscape in the years ahead.

What This Means for Sellers and Buyers

For Sellers:

Strong population growth and limited housing supply are creating favourable conditions for homeowners looking to sell. With fewer properties available on the market and buyer demand remaining high, sellers may benefit from increased competition, which can lead to stronger offers and shorter selling times. Pricing strategically and presenting a property well can help maximise interest in what continues to be a competitive market environment.

For Buyers:

While the market remains competitive, opportunities still exist—particularly in entry-level and mid-priced homes. Buyers may need to act quickly and be well-prepared financially, as desirable properties can attract multiple offers. Exploring emerging suburbs and working closely with experienced real estate professionals can help buyers identify value and secure a home despite tight supply conditions.