Perth’s residential property market exceeded expectations in 2024, recording double-digit price growth and rising rents, underpinned by constrained supply, strong population growth, and relative affordability. Current indicators, including data from Cotality and REIWA, suggest the 2025 growth forecast of 9–11% remains on track, with these fundamental drivers expected to persist into 2026.

While affordability constraints and elevated interest rates may temper the pace of growth, demand is projected to continue exceeding supply across both sales and rental markets. Without a sustained increase in new dwelling completions, market conditions are likely to remain tight. Based on prevailing trends, Momentum Wealth forecasts dwelling prices in Perth to rise by approximately 10% and rents by 4% in 2026. In the absence of a material improvement in supply, Perth is well positioned to continue outperforming other capital city markets.

Key factors supporting this outlook include Western Australia’s resilient economic conditions, critically low sales and rental listings, rapid selling times, and ongoing population growth driven by interstate and overseas migration. Conversely, cost-of-living pressures, restrictive borrowing conditions, external economic risks, and short-term impacts of government initiatives on demand represent potential headwinds. Despite these challenges, the overall outlook remains positive, supported by strong underlying fundamentals and persistent supply shortages.