WA Property Market Update: Still Australia’s Strongest, But Shifting Gears (June 2026)

Last updated: 28 June 2026

Western Australia is once again leading the country for property price growth — but after two breathless years, the market is starting to change gear. If you’re thinking about buying, selling, investing, or simply keeping an eye on your suburb, here’s a clear, up-to-date read on where the WA market sits right now and where it’s heading.

The headline: still rising, but cooling from the peak

Perth remains the strongest capital city market in Australia. According to Cotality’s latest figures, the median dwelling value reached around $1.05 million in May 2026, up roughly 25.8% over the past year — comfortably ahead of every other capital. For houses specifically, the median is sitting near $1.10 million.

The important shift is in the pace of growth. The near-3% monthly gains we saw late in 2025 have eased to around 1.5% a month. In other words, prices are still climbing — just no longer at a sprint. This is a market moving from a supply-starved boom into a more sustainable phase.

A quick note on numbers: you’ll see different medians quoted depending on the source. Cotality’s index-based figure sits above $1 million, while REIWA’s settled-sales median (which measures something slightly different) had Perth houses around $890,000 and units around $635,000 in the March 2026 quarter. Both are valid — they just count in different ways.

Units are now outperforming houses

One of the clearest trends in 2026 is buyers shifting toward units, townhouses and villas as houses become less affordable. REIWA expects house prices to rise more than 10% this year, while units are tipped for 15–20% growth. In recent monthly data, unit values have been growing faster than houses — a sign that the entry-level end of the market is doing much of the heavy lifting.

For first-home buyers and investors priced out of standalone houses, well-located units near transport, hospitals and lifestyle hubs are where a lot of the action is.

What’s driving the market — and what’s changing

The fundamentals behind WA’s run have been unusually one-sided:

Record population growth. Western Australia’s population has passed 3 million for the first time, growing at the fastest rate in the country thanks to strong interstate and overseas migration.
A tight, undersupplied market. New home completions haven’t kept pace with demand, keeping established homes in short supply.
A strong local economy. A resilient resources sector continues to support employment, incomes and borrowing capacity.

But two things are now turning:

1. Listings are recovering. By mid-June 2026 there were around 5,700 properties for sale in Perth — about 40% higher than a year earlier. More choice takes some of the heat out of the buyer competition that fuelled the late-2025 “fear of missing out”.

2. Interest rates have reversed direction. After three cuts in 2025, the RBA cash rate has moved back up to 4.35%, and the market consensus is for no cuts in 2026 — with the possibility of further increases. This is the single biggest swing factor for the year ahead, and it weighs most heavily on first-home buyers whose borrowing capacity is most sensitive to rate moves.

The rental market: still very tight

WA remains one of the tightest rental markets in the country, with vacancy rates around 0.5% and rents leading the nation for growth (up roughly 6.9% over the year). Renters can expect continued strong competition, particularly close to the city and popular lifestyle areas. A factor to watch: potential changes to negative gearing, capital gains tax and tenancy laws could prompt some investors to sell — and with investors supplying the large majority of WA’s rental stock, that could tighten rental supply further.

Where it’s heading: a strong 2026, a slower 2027

Forecasts for the rest of 2026 remain strong, though they vary on pace. The major banks and analysts are broadly pointing to double-digit growth for the year:

CBA: around +15%
Westpac: around +13%
ANZ: around +12.3%
KPMG: houses around +12.8%, units around +11.6%
NAB (WA state level): around +5.5%

The bigger signal is what comes after. Several forecasters expect growth to slow sharply in 2027 — ANZ projects a drop to around 1.5%, while KPMG sees something closer to 5%. The widely held view is a strong 2026 followed by a clear deceleration as affordability limits and higher rates bite. Notably, housing affordability in Perth is now at its worst level in around 30 years, which is the underlying tension in every forecast.

What this means for you

If you’re buying: Prices are still rising, so waiting carries a real opportunity cost — but more listings mean slightly less pressure than late 2025. Getting your finance and pre-approval sorted matters more than trying to perfectly time the market.

If you’re selling: Conditions remain favourable, with strong demand and homes still selling quickly. Well-presented, well-priced properties in good locations continue to achieve standout results.

If you’re investing: WA’s fundamentals — population growth, tight supply and strong rental demand — remain compelling, but keep an eye on rate movements and possible tax/tenancy changes.

Every suburb and every property is different, and a citywide forecast only tells part of the story. If you’d like a tailored view on your suburb or your specific situation, get in touch — I’m always happy to talk through what the numbers mean for you.

Sources: REIWA, Cotality, and published forecasts from CBA, Westpac, ANZ, NAB and KPMG (data current to late June 2026). This article is general information only and not financial or investment advice.