Perth’s property market is showing no signs of slowing, with new data suggesting house prices could climb dramatically in 2026. According to the Real Estate Institute of Western Australia (REIWA), sustained demand and limited housing supply are continuing to push values upward, potentially driving the city’s median house price to record levels.
Strong demand fuels rapid price growth
Recent figures from REIWA indicate Perth’s median house price has reached around $890,000, marking a significant rise in a short period. The institute notes that strong buyer demand, paired with a shortage of available listings, has created intense competition and faster sales across the market.
REIWA also projects that if these conditions continue, house prices could increase by as much as 20% throughout 2026, potentially pushing the median beyond the $1 million mark for the first time. The organisation adds that units are also experiencing solid growth, in some cases rising at a quicker pace than houses.
Supply changes and market uncertainty
While the outlook remains positive, REIWA points out that a gradual increase in listings is beginning to give buyers more choice. This shift may help ease the rapid pace of price growth, although supply levels still sit below long-term averages.
The institute further highlights changing buyer behaviour, with less urgency, fewer competing offers, and more room for negotiation. Broader economic factors such as interest rates and cost-of-living pressures are also expected to influence how the market performs in the coming months.
What it means for buyers and sellers
For sellers, the current conditions present a valuable opportunity to take advantage of elevated property prices, particularly while demand remains strong. However, as the market shows early signs of balancing, timing could play a crucial role in maximising returns.
Buyers, meanwhile, may face growing affordability challenges if prices continue to rise. With borrowing power impacted by interest rates and everyday expenses, many may need to act strategically or consider alternatives such as units to enter the market.
