As we approach the end of 2025, the Perth property market remains one of the most tightly held and resilient in the country. Buyer interest is strong, listing numbers are low, and the rental market is still experiencing significant pressure. These conditions have been consistent throughout the year, and they give us a good indication of where things are heading in 2026.
Perth continues to attract new residents from both interstate and overseas. People are drawn to the lifestyle, relative affordability and steady employment opportunities. This population growth has been one of the biggest drivers of demand, and there is little sign of it slowing. At the same time, the number of homes coming onto the market has not kept pace. New building approvals and completions remain below what is needed to balance supply. Construction delays and higher build costs have also limited the amount of new stock reaching buyers. As a result, the established home market continues to carry most of the demand.
The rental market is still extremely competitive. Vacancy rates have remained very low throughout the year, and this is expected to continue into 2026. Rent increases have been consistent, and many tenants are facing limited options when searching for a home. This environment has kept investors active, particularly those looking for stronger yields compared with the eastern states.
Economically, Perth is in a stable position. Employment levels have held up well, and this has helped maintain buyer confidence. Most buyers are more cautious with interest rates still a key consideration, but overall confidence remains solid. Any significant shift from the Reserve Bank would have an effect on sentiment, so it will be an important factor to watch in the new year.
Looking ahead, the general expectation for 2026 is continued growth, although it should be more moderate compared with the sharp rises of recent years. Most forecasts suggest steady single-digit price increases across the city. Suburbs with strong lifestyle appeal and good access to schools and transport are likely to remain in high demand. Family areas with limited turnover should also continue to perform well, and the outer suburbs may see further activity from first-home buyers and relocating families seeking affordability.
The biggest influence on the market remains the balance between supply and demand. With so few properties coming to market and no major increase in new housing expected early in the year, Perth is positioned to remain competitive. Buyers may see slightly more stability, but the low level of stock means well-presented homes will continue to attract strong enquiry.
Investors can expect rental conditions to remain tight. Yields are likely to stay appealing, and tenant demand will remain strong in areas with low vacancies. For sellers, the opening months of 2026 look positive, especially for homes that are well prepared and priced with the current market in mind. Buyers will still need to be organised and ready to act when the right property becomes available.
Overall, Perth enters 2026 with a stable and confident outlook. The fundamentals that have shaped the market in recent years are still firmly in place. Strong demand, limited supply and a very tight rental market continue to support conditions for steady growth in the year ahead.
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