Strong price growth is forecast for the Perth property market in 2026, according to REIWA.
The median house price is expected to rise by more than 10 per cent, while the median unit price is likely to see 15 to 20 per cent growth.
"Perth prices continue to be driven by a significant imbalance between supply and demand," REIWA President Suzanne Brown said.
"Population growth remains high, with Perth recording 2.2 per cent growth in the year to June.
"And while new home completions in the December 2024 quarter were the highest in seven years, they have declined each quarter since then.
"Compounding the supply issue in the new homes market has been the decline in new listings in the established homes market. They were below long-term averages in the last six months of 2025. As a result, we saw FOMO return to the market and price growth accelerate towards the end of the year."
Perth's median house sale price* recorded 13.3 per cent growth in 2025, with the median house sale price rising from $750,000 at the end of 2024 to $850,000 in December 2025**.
The median unit sale price increased 20.0 per cent to $600,000 over the same timeframe, up from $500,000.
Both Perth's house and unit median sale prices ended 2025 at record highs.
Ms Brown said affordability, accessibility and availability would drive the market in 2026.
"There are a couple of aspects of affordability that could affect the market," Ms Brown said.
"Firstly, as houses have become less affordable, we have seen more people turn to the unit market, which includes villas, townhouses, home units, flats, and apartments. This redirection of demand is saw price growth in the unit market surpass median house price growth in 2025 and this is likely to continue in 2026.
"On an economic level, changes to interest rates can impact demand by increasing or reducing borrowing capacity.
"After three rate cuts in 2025, the general consensus is that, at best, there will be no reductions in 2026. At worst, there may be several increases. Should interest rates rise more than once in the coming months we could see market activity decrease, particularly in the first home buyer market."
Ms Brown said that as affordability declines, demand often eases and price growth slows but a range of factors can mitigate this.
"There are a number of State and Federal Government schemes that aim to address affordability challenges," she said.
"These schemes make home ownership more accessible, for example by reducing purchase costs or the need to spend years saving a large deposit. However, by improving accessibility you bring demand forward. This can either create, or maintain, upward pressure on prices, depending on the existing state of the market. Currently, accessibility measures are supporting existing strong price growth.
"And if we don't see a significant improvement in the availability of properties to purchase, or a strong increase in new home supply, the upward pressure on prices will remain.
"Conditions may change over the year and REIWA will review its forecast each quarter."
Perth rental market
"I'm pleased to say Perth's rental market remained relatively stable over 2025," Ms Brown said.
"While rent prices are at record highs, the rate of price growth continued to slow over the year and prices showed periods of stability.
"The median house rent price reached a record $700 in August. It dropped slightly in September before returning to $700 for the remainder of the year. It ended 2025 4.5 per cent higher over the year, compared to 8.1 per cent growth recorded in 2024.
"The median weekly unit rent price rose 4.6 per cent to a record $680 over 2025. This is a much lower rate of growth than the 14.0 per cent increase recorded in 2024.
"We are expecting to see more periods of rent price stability in 2026 and a similar rate of price growth over the year.
"However, conditions will continue to vary across Perth and tenants can expect to see strong competition for homes, and a higher rate of rent price growth, in areas close to the city, popular lifestyle hubs and key transport infrastructure.
"They will have more choice in suburbs on the outskirts of Perth, particularly where there is a lot of new supply. As a result, rent price growth is likely to remain soft in these areas."
Regional WA
Strong median house sale price growth is expected across the majority of regional centres in 2026.
"Several regional centres outstripped Perth for price growth in 2025, and that is likely to continue in 2026," Ms Brown said.
"We're expecting Albany, Bunbury and Geraldton to be among the top performers, potentially with growth around 15 per cent.
"Busselton, Esperance, Kalgoorlie and Karratha could achieve up to 10 per cent growth. Broome and Port Hedland are likely to record less growth, possibly up to 5 per cent.
"There are a number of factors affecting regional markets, including population growth, infrastructure investment which boosts employment opportunities, and challenges with new supply."
Rent price growth will also vary across the regional centres.
"Regional rental markets have been impacted by several factors, and this will continue into 2026," Ms Brown said.
"Infrastructure investment is increasing employment opportunities in many regions, which is driving demand for rental properties and seeing prices rise.
"In others, the lack of Government Regional Officer Housing is seeing government departments look to the private rental market for accommodation, which increases competition for housing.
"And some areas, such as Esperance, saw a large exodus of investors in recent years, which significantly reduced the supply of rental properties.
"Each region has different drivers, and I recommend tenants and potential investors speak to local REIWA property managers for an on-the-ground update on the direction of these markets."
* REIWA publishes an annual median sale price based on settled sales
** Correct as at 22 January 2026
