Less Frenzy, Same Pressure Beneath the Surface
Key Points – Perth Property Market Update Q1 2026
- Listings rebounded — but remain well below normal levels
Total listings rose through the quarter but remain significantly below historical norms, keeping supply tight. - House prices continued to grow at a steady pace
REIWA median house price reached $890,000, up 4.7% over the quarter and 14.8% annually. - Independent data confirms continued upward pressure
Cotality shows 7.3% quarterly growth, adding roughly $69,000, with a median house price of $1,062,538. - Competition has eased slightly — but remains strong
Offer volumes have reduced from peak levels, though well-located homes are still being contested. - The market is beginning to split by price point
Sub-$2M remains resilient, while higher price brackets are showing early sensitivity to borrowing capacity. - Demand continues to be underpinned by migration and limited supply
Population growth and construction constraints remain key structural drivers. - Quality is re-emerging as the key differentiator
Strong, owner-occupier-grade properties continue to perform, while compromised assets face more resistance.
Full Report – Perth Property Market Update Q1 2026
If Q4 2025 felt like a pressure cooker, Q1 2026 has felt more like a release valve, but not a reset.
The pace has moderated just enough to create small windows, but not enough to change the broader direction of the market.
Supply: Improved, but still constrained
Listings lifted through the quarter to 3,255 properties for sale — a meaningful increase from the record lows seen at the end of 2025.
But in context, supply remains tight.
A balanced Perth market typically carries 12,000–13,000 listings. Even after the rebound, we’re still well below that level.
The underlying issue hasn’t changed; many sellers remain hesitant to list without clarity on their next move, keeping supply constrained.
(Source: REIWA)
Growth: Still moving forward
Perth’s housing market continued to move forward through the first quarter of 2026.
REIWA data shows the median house price sitting at $890,000 as at March 2026, with growth of 1.1% over the month, 4.7% over the quarter, and 14.8% over the past 12 months.
That’s a strong result and one that reflects the same underlying dynamic we’ve seen for some time now: demand continuing to outpace available supply.
(Source: REIWA)
Cotality data shows a similar trend, with values rising 7.3% over the quarter, adding roughly $69,000 to median prices, and placing Perth’s median house price at $1,062,538 as at 31st March 2026.
(Source: Cotality)
What’s notable this quarter isn’t that growth has slowed, but that it’s become a little more measured compared to the sharper acceleration seen at the end of 2025.
That’s a natural transition.
Markets rarely move in a straight line. After periods of rapid growth, they tend to shift into a steadier phase; still moving forward, just without the same intensity.
And that’s what this quarter reflects.
The driver remains the same: limited supply relative to demand, particularly for well-located houses with strong owner-occupier appeal.
Competition: Easing, but not soft
One of the more noticeable shifts this quarter has been in competition.
Where Q4 often saw double-digit offer counts, we’re now more commonly seeing two to seven offers per property.
That’s a meaningful change, but still reflects a strong market.
For many buyers, this has created slightly more room to assess and act with clarity, rather than reacting under pressure.
Demand: Still being reinforced by fundamentals
(Photo: TheIndianSun.com.au)
Population growth remains a key driver.
Australia recorded over 57,000 net arrivals in January alone, the highest on record, with close to half a million people added nationally over the past year.
Many of these new arrivals enter the rental market first, placing further pressure on the already limited housing supply.
At the same time, constraints around land, labour, and construction continue to limit how quickly new stock can be delivered.
This combination continues to support underlying demand.
A Market Beginning to Split
Beneath the headline numbers, the market is starting to behave less like one cycle and more like two.
At the entry and mid-market level, demand remains strong. Properties under $2M continue to be absorbed quickly, driven by owner-occupiers and upgraders who still need somewhere to live.
At the higher end, particularly between $2M and $3.5M, momentum has softened slightly. Borrowing capacity is starting to have an effect, with some buyers being pulled back from where they could previously stretch. The result isn’t a downturn, but more of a pause.
At the same time, buyer behaviour has shifted.
The panic of late 2025 has eased. Open homes feel more purposeful, with fewer casual attendees and more buyers who are prepared, but not rushing.
It’s still very much a seller’s market. But with slightly more stock coming through, there’s now a sense that if one opportunity is missed, another may come along.
What hasn’t changed is how the market treats quality.
Well-located, well-presented homes continue to attract strong competition. Compromised properties are starting to face more resistance as buyers become more selective.
And at the premium end, despite the softer momentum, Perth still appears relatively undervalued compared to other capital cities, particularly for buyers with the capacity to act.
Sentiment vs Reality
There remains a clear gap between sentiment and behaviour.
Consumer confidence is low, shaped by interest rate expectations, cost-of-living pressures, and global uncertainty.
But on the ground, buyers are still active, particularly when the right property becomes available.
That tension is where many opportunities tend to sit.
What This Means for You
For buyers
Conditions feel more uncertain, but are quietly more workable than they’ve been in some time.
With slightly less competition than late 2025, well-prepared buyers have more opportunity to act without the same level of pressure.
Clarity remains the key advantage.
For homeowners thinking ahead
The challenge remains less about selling and more about buying well afterwards.
Planning the sequence of your move is critical — particularly in a market where suitable stock remains limited.
At the same time, softer sentiment can create opportunities to secure stronger replacement assets.
For investors
This is where asset quality becomes more visible.
Stronger markets lift everything. More selective markets reveal the difference.
This phase is less about expansion and more about positioning — focusing on assets that will continue to perform beyond the current cycle.
Final takeaway
Markets rarely turn all at once.
More often, they shift gradually from broad momentum to more selective outcomes.
Q1 2026 feels like one of those transitions.
The opportunities are still there.
They just require a little more clarity than they did a few months ago.
If you’d like a calm, no-pressure chat about how this market impacts your next move, you can reach us here: https://www.buyersadvocateperth.com.au/contact-us/
— View all Perth Property Market Updates
— Review the previous Perth Property Market Update here → Perth Property Market Update Q4 2025
Disclaimer
The information shared in this property market update is provided for general informational purposes only and should not be regarded as financial or investment advice. Property markets can fluctuate, and all investments carry risks that may not suit everyone’s personal circumstances or risk profile.
While Buyers Advocate Perth strives to share insights that reflect current market conditions, we cannot guarantee the accuracy, completeness, or future outcome of any scenario described. Past performance is not a reliable indicator of future results.
Readers are encouraged to seek independent professional advice from qualified financial, legal, or accounting experts before making any property or investment decisions based on this content. Buyers Advocate Perth, its directors, employees, and associated entities accept no liability for any actions taken or decisions made relying on this publication.
