With the market already in overdrive, it looks like the property boom is far from over. Perth\u2019s 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?<\/p>\n\n\n\n
The Real Estate Institute of WA (REIWA<\/a>) has forecast that Perth\u2019s unit market will see significant price growth, with the median unit price jumping from $600,000 to $720,000\u2014an impressive 20% increase by the end of 2026. This surge comes after 2025\u2019s 20% price increase, which already outpaced the growth in house prices (13.3%) last year.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n 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\u2019s clear that the market is evolving\u2014buyers are no longer chasing after bigger, more expensive houses.<\/p>\n\n\n\n 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<\/a>. This growth is still strong but doesn\u2019t 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.<\/p>\n\n\n\n Despite the sky-high prices, the rental market in Perth<\/a> 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.<\/p>\n\n\n\nHousing Still on the Rise, But at a Slower Pace<\/h2>\n\n\n\n
Rental Market: A Stabilizing Force<\/h2>\n\n\n\n