With the market already in overdrive, it looks like the property boom is far from over. Perth’s property market is set to make another big leap, with unit prices predicted to rise by 20% in 2026. But will it last, and what does this mean for the rest of Australia?
The Unit Market on Fire
The Real Estate Institute of WA (REIWA) has forecast that Perth’s unit market will see significant price growth, with the median unit price jumping from $600,000 to $720,000—an impressive 20% increase by the end of 2026. This surge comes after 2025’s 20% price increase, which already outpaced the growth in house prices (13.3%) last year.
Suzanne Brown, President of REIWA, explains that this sudden price hike is due to more buyers turning to units as housing has become increasingly unaffordable. As more Australians are priced out of the housing market, many are looking for alternative living options in the unit market, which is more affordable. This trend shows no signs of slowing down, as interest rates continue to pressure household budgets.
The strong demand for units in Perth is expected to continue in 2026, with factors like interest rate hikes, a growing population, and a housing shortage all contributing to the price increases. However, as more people turn to townhouses, apartments, and villas, it’s clear that the market is evolving—buyers are no longer chasing after bigger, more expensive houses.
Housing Still on the Rise, But at a Slower Pace
While units are predicted to see a sharp increase, the house market in Perth is also expected to grow, albeit more modestly. REIWA forecasts a 10% price boost, with the median house price reaching $935,000 by 2026, reports Thewest. This growth is still strong but doesn’t match the pace of the unit market. For prospective buyers, this means homeownership is becoming even more elusive, especially with higher rates on the horizon.
Rental Market: A Stabilizing Force
Despite the sky-high prices, the rental market in Perth is expected to remain relatively stable. With record-high rents (currently around $700 per week for houses and $680 per week for units), the demand for rental properties is still high, but rent price growth is likely to stabilize in 2026. That being said, areas closer to the city center and key lifestyle hubs are expected to continue seeing higher rent increases due to demand.
Perth’s Appeal to Investors
While these soaring property prices may be a headache for first-time buyers, investors continue to see Perth as a profitable market. A national report showed that Perth had the highest short-term sentiment rating of any state, with Australian Property Investors giving it an 8.9/10 rating, reflecting growing investor confidence.
But what does all this mean for the future? The economic uncertainty surrounding interest rates and construction costs means that while Perth is thriving now, there are questions about how long this growth can continue. With households already feeling the pinch of higher living costs, the future remains uncertain—yet optimistic for some.
