Perth housing market update [video] | May 2026

Key takeaways

Perth home values jumped 2.1% in April alone, adding roughly $21,280 to the median dwelling value and leading the country in capital growth.

Annual gains have reached a phenomenal 26%, registering the steepest yearly acceleration the city has seen since the mining boom in January 2007.

An active flight to affordability is keeping entry-level stock moving fastest, with lower-quartile properties rising 2.4% over the month versus 1.8% for the upper quartile.

The Perth property market continues to outpace the rest of the nation, with Cotality’s latest index tracking a substantial dwelling value surge of 2.1% in April.

This rapid growth injected approximately $21,280 into the local median home value over a single month.

While eastern states face multi-layered headwinds and outright value declines, the Western Australian capital maintains exceptional momentum, anchoring its position as the country's strongest capital city market.

An evaluation of the local landscape reveals an extraordinary growth trajectory that has pushed annual capital gains to 26%.

This marks the sharpest annual acceleration Perth has experienced since the twilight of the historic mining boom in January 2007.

Even though macro-economic challenges are gently cooling the rate of expansion from its absolute peaks, deep buyer demand is keeping local transaction conditions remarkably intense.

Perth Market Performance

While upward pressure remains visible across all sectors, a distinct tier split is still visible through the opening months of 2026.

Entry-level homes continue to experience the highest rate of capital growth, though premium properties are still recording increases that far surpass national averages.

Source: Cotality, May 2026

Affordability and Serviceability Constraints

The core challenge elements modifying the broader Australian market—such as elevated mortgage rates, strict borrowing assessments, and high cost-of-living expenses—are less restrictive in Western Australia due to its comparatively affordable entry point.

However, a sudden jump in local transport costs and high fuel prices have caused a mild dip in consumer sentiment.

This subtle shift in buyer confidence has concentrated the bulk of active demand beneath the local median price point.

Lower quartile values moved up by 2.4% in April, whereas upper quartile properties rose by 1.8%.

First-home buyers, interstate arrivals, and private investors are deliberately focusing on fields where entry costs remain accessible and where bank serviceability assessments match local wage metrics.

Supply Dynamics and Future Outlook

The primary catalyst for Perth’s exceptional price growth remains an acute lack of available inventory on the market.

Note: Advertised listings are starting to show a clear upward trend from a historically low base, but total available stock continues to sit well below long-term seasonal averages.

This persistent supply deficit leaves buyers with very little leverage, preventing the cooling patterns visible along the eastern seaboard.

Source: Cotality, May 2026

The forward outlook for Perth across the back half of 2026 points toward a gentle moderating of growth rather than a major downturn.

A robust state labour market maintains high income security and insulates the housing market against forced or distressed selling.

Combined with a residential building pipeline that is lagging significantly behind incoming population growth, the ongoing supply mismatch should provide a firm structural safety net for local home values.

About Tim Lawless Tim is Research Director at Cotality (formerly CoreLogic), analysing real estate markets, demographics and economic trends across Australia. Visit www.corelogic.com.au