Perth property prices could exceed initial growth expectations, following a strong performance in the first quarter of the year, but changes to consumer sentiment could ease the pressure in the market, according to REIWA's 2026 property market quarterly update.
REIWA President Suzanne Brown said Perth's median house sale price* recorded preliminary growth of 4.1 per cent in the March 2026 quarter, rising to $890,000**, while the median unit sale price* increased 5.8 per cent to $635,000**.
"Most of the March quarter was characterised by lower-than-average new listings and consistently strong demand, which saw dwellings sell in record timeframes and price growth accelerate," she said.
"If these trends were to continue through 2026, median sale price growth for houses could reach 20 per cent, while units could exceed 20 per cent growth.
"However, there are a number of factors that could alter that trajectory.
"Firstly, we saw new listings increase through March and into April.
"This gave confidence to some potential sellers who had been holding off selling due to the difficulty in finding a new home, encouraging them to list. This boosted listings further. We've also seen a growing number of investors, concerned about the almost-certain changes to taxation policy and possible changes to WA tenancy legislation, decide it's time to take advantage of strong market conditions and sell.
"It is good to see Perth's listings logjam ease, but I will note that new listings are still below long-term averages, so this is not a significant increase in supply."
Ms Brown said the other change in market dynamics was an easing of buyer urgency.
"Our members are reporting less activity at home opens, fewer offers and more negotiation," she said.
"In part this is due to the increase in listings, which has given buyers more choice and time to make decisions.
"However, it's also due to buyer sentiment. Understandably, buyers are becoming more price sensitive. They are being impacted by interest rate increases, which reduce their borrowing power, and are concerned about more rate rises this year.
"They are also concerned about the rising cost of living and uncertainty caused by the conflict in the Middle East. In these situations, people tend to delay significant decisions if they can.
"Mitigating this change are the growing issues in the building industry due to the Middle East conflict. The costs to build a home are increasing and completion timeframes are likely to increase. As we saw during COVID, this could maintain buyer focus on the established homes market.
"We won't see the full impact of these factors for some time. Based on current conditions, we are keeping with our original forecast of 10 per cent median sale price growth for houses and 15-20 per cent growth for units. We will continue to watch the market and update our forecast accordingly."
Perth rental market
Perth's median weekly house rent price increased 4.3 per cent in the March 2026 quarter to $730**, while the median unit rent price increased 2.6 per cent to $700**.
This compares to total growth of 4.5 per cent for houses in 2025 and 4.6 per cent for units.
Ms Brown said the strong rate of growth in the first quarter was concerning, particularly when combined with a decline in the vacancy rate in both February and March.
"We were expecting a moderate 5 per cent increase in median rent prices over 2026, but we are seeing several changes that could increase the upward pressure on prices," she said.
"This includes likely changes to the Capital Gains Tax discount and negative gearing, and media reporting around changes to no grounds terminations. These will impact investor sentiment and see some investors leave the market. Our members are already reporting an increase in appraisals and listings from investors and current market conditions make it very easy for them to sell.
"Investors supply more than 86 per cent of rental properties in WA and are essential for a healthy rental market. Each investor lost is another blow to renters and rental affordability.
"Compounding this are the issues in the building industry. As we saw during COVID, when the new homes market is constrained, the rental market bears the brunt as the system's shock absorber, accommodating households who are unable to move into completed properties.
"Based on these conditions, we are expecting the rate of rent price growth to increase over 2026."
Regional WA
Several regional centres recorded strong preliminary median house sale price growth over the first quarter of 2026, with the trend expected to continue.
"Regional markets are also feeling the effects of ongoing strong population growth, with lifestyle and employment opportunities drawing people to the regions and keeping them there," Ms Brown said.
"Strong demand and low supply are maintaining upward pressure on prices in many regional centres. The challenges associated with building, such as high costs and lack of land, continue to focus demand on the established homes market.
"Unfortunately, the issues being felt in the building industry due to the conflict in the Middle East are likely to see this increase.
"Based on current trends, the Albany, Busselton, and Geraldton regional centres have the potential to record median house sale price growth of 20 per cent or higher over 2026.
"The Bunbury regional centre could see 15 to 20 per cent growth, while Esperance, Kalgoorlie, Karratha and Port Hedland are likely to see growth between 10 and 15 per cent. Broome could record more moderate growth of around 5 per cent."
Regional rental markets remain constrained and moderate growth is expected in most centres. Lower growth is more likely in Geraldton and Kalgoorlie.
"Legislative and taxation policy changes may also affect rental supply and prices in all regional centres should investors choose to sell. However, the Karratha and Port Hedland markets should be more protected as many leases in those regional centres are to companies and government departments," Ms Brown said.
* REIWA publishes an annual median sale price based on pending and settled sales
** Correct as at 16 April 2026
