Perth housing market update [video] | April 2026

Key takeaways

Perth is Australia's fastest-growing property market, with home values jumping 2.5% in March and a massive 7.3% over the first quarter of 2026.

Supply is at crisis levels, with property listings sitting 40% below the five-year average, forcing buyers into intense competition and driving prices up by $200,000 in just one year.

Affordability is the key driver, as the lower-priced segment of the market surged 9.2% this quarter, reflecting a massive shift in demand toward more accessible housing options.

The pace of growth in Perth housing values accelerated in March, with the market recording a significant 2.5% increase over the month.

This surge has taken the quarterly gain to 7.3%, making Perth the strongest-performing capital city in Australia by a considerable margin.

Over the past 12 months, housing values have risen by a remarkable 24.3%, adding approximately $200,000 to the median home value.

Growth conditions remain exceptionally strong across all price points, but the most affordable end of the market continues to lead the way.

The lower quartile of housing values surged by 9.2% through the March quarter, reflecting intense competition for entry-level properties.

This momentum is being underpinned by a persistent and severe shortage of available housing stock relative to demand.

Perth Market Performance

Perth's housing market is currently operating in a league of its own, with quarterly growth figures that equate to a median value lift of approximately $69,000 in just three months.

Source: Cotality, April 2026

Affordability and Serviceability Constraints

While Perth remains one of the more affordable capital cities relative to incomes, it is not immune to the rising cost of debt.

Serviceability assessments, which now include a 3 percentage point buffer, mean most new borrowers must prove they can service a mortgage at around 9%.

This is beginning to shift demand toward the more affordable lower quartile, where the impact of these constraints is less restrictive.

The 9.2% jump in lower-quartile values compared to the 5.8% rise in the upper quartile clearly demonstrates how buyers are adjusting their expectations to fit their borrowing capacity.

Despite these headwinds, the relatively lower entry price in Perth compared to the eastern states continues to attract both local buyers and interstate investors.

Supply Dynamics and Future Outlook

The primary driver of Perth's extraordinary price growth is the fundamental constraint of low supply.

Advertised stock levels are currently sitting approximately 40% below the five-year average for this time of the year.

While listing numbers have shown a slight upward trend, the rate of absorption by buyers remains far higher than the rate of new supply coming to market.

Source: Cotality, April 2026

Note: The outlook for Perth through the remainder of 2026 remains highly positive, albeit with questions regarding the sustainability of the current pace of growth.

The combination of tight supply, a resilient labour market, and strong interstate migration should continue to support prices.

However, the market will become increasingly sensitive to any further interest rate hikes and broader economic shocks.

For now, Perth remains the clear leader in the Australian property cycle.

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