Key takeaways
Perth maintains its title as Australia's hottest property market, with values leaping 2.3% in February and adding roughly $22,500 to the median price in a single month.
The lower end of the market is witnessing an unprecedented surge, with values in the bottom quartile jumping 8.4% over the last three months as buyers scramble for affordability.
A severe lack of supply is the main engine behind these gains; total listings are nearly 50% below historical averages, resulting in a lightning-fast median selling time of just 10 days.
Perth continues to lead the nation in capital growth, with housing values surging by 2.3% in February alone.
This remarkable monthly jump added more than $22,500 to the median dwelling value.
While other major capitals like Sydney and Melbourne have flatlined, Perth remains the standout performer, fueled by a severe shortage of available housing and strong buyer urgency.
Leading Segment and Growth Drivers
The Perth market is experiencing rapid appreciation across all price points, but the lower end of the pricing spectrum is seeing the most aggressive gains.
With homes selling in a median of just 10 days, competition remains at fever-pitch levels.
Affordability remains a key driver, as reflected in the quarterly growth figures across different market segments:
| Market Segment | 3-Month Value Change | Market Velocity |
|---|---|---|
| Lower Quartile (Affordable) | +8.4% | Extreme demand; fastest-selling segment. |
| Upper Quartile (Premium) | +5.5% | Strong growth but slightly trailing affordable stock. |
| Overall Market | +2.3% (Monthly) | Leading all Australian capital cities. |
Source: Cotality, March 2026
- Also read:March Home Prices Still Rising | Latest stats from Dr. Andrew Wilson
- Also read:Latest Property Price Forecasts Revealed. Australian Property Market Outlook 2026: Where To Now After The Rate Rise.
- Also read:Melbourne property market forecast for 2026 | Is it a good time to invest in Melbourne?
- Also read:Brisbane Property Market Forecast [2026] – What’s Ahead & Where to Invest
- Also read:Sydney property market forecast for 2026. Is it a good time to invest in Sydney?
Extreme Inventory Shortage
The primary catalyst for Perth's price surge is a critical lack of advertised stock.
Note: Inventory levels are tracking at near-record lows, leaving buyers with very few options and maintaining intense upward pressure on values.
| Supply Metric | Status (February 2026) |
|---|---|
| Total Listings (vs. 5-Year Average) | 48% Lower |
| Median Days on Market | 10 Days |
Source: Cotality, March 2026
Outlook for 2026
While the broader Australian market is expected to see growth moderate, Perth's unique supply-demand imbalance suggests it will continue to outperform.
However, the market is not entirely immune to national economic pressures.
Key factors to watch in Perth:
- Interest Rate Impact: The February rate hike continues to erode borrowing power, though Perth's lower median price point offers some insulation compared to Sydney.
- Migration Levels: Sustained population growth in Western Australia remains a significant tailwind for housing demand.
- Serviceability: As prices rise rapidly, serviceability buffers may eventually limit the depth of demand, particularly in the premium sector.
In conclusion, Perth remains a seller's market characterised by extreme stock scarcity and rapid turnover.
While growth may moderate slightly later in the year, the current momentum is firmly supported by fundamental supply constraints.
