Perth's median house sale price* could reach $1 million by the end of the year, despite the softening in the market, according to REIWA's 2026 property market quarterly update.
REIWA President Suzanne Brown said Perth's median house sale price recorded growth of 5.3 per cent in the March 2026 quarter, followed by preliminary growth of 4.2 per cent in the June quarter to reach $938,000 at the end of June.
The median unit sale price* rose 7.0 per cent in the March quarter and recorded preliminary growth of 4.7 per cent in the June quarter to reach $675,000.
"There was a clear change to the property market in the June quarter," Ms Brown said.
"We saw new listings return to longer-term averages. Demand eased, with both investors and first home buyers taking a step back following the Federal Budget. I also believe some buyers are waiting to see what happens in August and September with interest rates.
"This has altered both sides of the supply and demand equation. As a result, the number of sales has declined slightly and the time to sell a property has increased. This has created the feeling that the market is heading for a downturn, but the sales data currently tells a different story.
"Perth's annual median sale prices are still increasing. We expect to see that growth continue throughout the year but at a lower rate than in the first and second quarters.
"If the median house sale price increases by 5 per cent over the next six months, it will be just shy of $1 million by the end of 2026. Stronger growth will see us exceed that milestone.
"Perth's median unit sale price is on track to record over 20 per cent growth and exceed $750,000 by the end of the year.
"Should there be less growth, or even price stability, frankly, I think many people would welcome a more balanced market."
Ms Brown said the fundamentals driving the market remained strong, although consumer sentiment had declined following three consecutive interest rate rises, the on-again-off-again conflict involving the United States and Iran, and the taxation changes announced in the Federal Budget.
"WA has a strong economy and is still recording strong population growth, which supports and drives housing demand. And while new home completions are back to long-term averages, we need to be building more homes than we currently are. This constraint on new supply is maintaining interest in the established homes market," she said.
"However, you can never rule out the effect of sentiment on the market.
"Recently we've seen investors and first home buyers take a step back. Potential investors have been affected by the changes to negative gearing and the capital gains tax discount and are weighing up their options.
"The Federal Government may have expected first home buyers to rush in and take advantage of the reduction in competition, but they haven't. Lending data supports the experience of our members on the ground and shows first home buyer activity has decreased more than investor activity.
"It's an interesting situation. We're hearing that a lot of first home buyers are listening to media reporting from the east coast and waiting for a significant fall in prices before they act. Our market is very different to Sydney and Melbourne, and they may be waiting a while.
"However, we are seeing strong activity in the upgrader market. Some people who were contemplating buying an investment property are instead investing that money in a new home, because you don't pay capital gains tax on your principal residence. Others are just making the most of the easing in the market and increase in active listings and trading up to a better home.
"The Spring selling season is going to be very interesting."
Perth rental market
While Perth's sales market recorded another quarter of strong growth, the rental market was relatively stable. The median weekly house rent price increased 1.4 per cent in the June 2026 quarter to $750**, while the median weekly unit rent price was unchanged at $700**.
Ms Brown welcomed the low rate of price growth but said, with the Perth vacancy rate still sitting at around 2 per cent, REIWA held concerns for the rental market over the remainder of the year.
"The Perth market has yet to see the full repercussions of the Federal Budget's taxation changes," she said.
"Before the Budget announcements, we saw an increased number of investors considering selling. While many have chosen to remain in the market for now, potential investors are very hesitant and our members are reporting a decline in investor purchases.
"This is very concerning. WA's population grew by 2.2 per cent in the year to December 2025, the strongest growth rate of any state or territory. Most of that growth was from overseas migration, which supports demand for housing, particularly to rent.
"Estimated rental supply is still below the peak recorded in February 2021. If supply remains static or, worse, declines again, we will see increased upward pressure on rent prices and a further decline in affordability.
"The new taxation policies may eventually drive investors towards new builds, helping increase rental supply. However, investors aren't just motivated by tax benefits. They want a good return. If we look at Perth, many of these new builds will be on the outskirts of the metropolitan area. These are not necessarily suburbs where tenants prefer to live, which makes it harder to fill vacancies and generate a consistent income. Should investors decide the numbers stack up, it will be 12 to 18 months before these new builds are finished and added to rental supply.
"Right now, we are worried about housing availability and affordability for tenants. We hope the changes to taxation policy, along with the upcoming reforms to WA's Residential Tenancies Act, do not lead to increased pressure on rent prices."
Ms Brown said, based on current conditions, REIWA expected median rent prices to increase by over 5 per cent over 2026.
"I hope we're wrong and the relative stability in prices continues," she said.
"But it seems unlikely."
Regional WA
Several regional centres recorded strong preliminary median house sale price growth over the second quarter of 2026, with the trend expected to continue.
