More Noise. Better Opportunity
Key Points – Perth Property Market Update Q2 2026
- More listings have returned to the market, giving buyers greater choice than we’ve seen in some time.
- Competition has eased from the frenzy of late 2025 and early 2026, but quality properties continue to attract multiple buyers.
- Buyers are becoming more selective and taking longer to make decisions, particularly where properties have compromises.
- Well-located homes with strong owner-occupier appeal remain highly sought after and are often selling quickly.
- The market is becoming increasingly quality-driven, with stronger assets outperforming weaker stock.
- Rental conditions remain tight, with low vacancy rates and ongoing rental growth supporting investment demand.
- The Federal Budget reforms have now become law, creating a clearer policy environment while prompting some investors to reassess their strategies.
- Affordability pressures continue to push some buyers towards units, townhouses and higher-density housing options.
- While sentiment has softened slightly, Perth remains significantly undersupplied compared to historical norms.
- Despite a louder news cycle, the structural drivers supporting Perth’s market—population growth, limited housing supply and constrained construction activity—remain largely unchanged.
Full Report – Perth Property Market Update Q2 2026
Q2 wasn’t short of headlines. Federal Budget reforms, State Budget housing initiatives, rental reforms and ongoing global uncertainty all influenced market sentiment. Yet despite the increased noise, Perth’s underlying market remained remarkably resilient.
Listings have rebuilt meaningfully from the record lows experienced over Christmas and early 2026, giving buyers more choice and a little more breathing room.
At the same time, demand continues to absorb quality stock, rents continue to rise, vacancy remains tight, and Perth remains one of the strongest-performing capital city markets in Australia.
The market feels different.
But not for the reasons many people think.
Growth: Still Moving Forward
Perth house prices continued their upward trend throughout the quarter.
REIWA reported Perth’s median house price reached $935,000, representing 5.6% growth over the quarter and 16.9% over the past 12 months.
Houses are still selling in a median of just 13 days, highlighting that demand remains strong despite a little more choice for buyers.
Cotality’s Home Value Index tells a similar story, with Perth house values rising 2.0% during the quarter and 23.6% over the year, pushing the median house value above $1.09 million.
While growth has moderated from the extraordinary pace seen late last year, Perth remains one of the strongest-performing capital city markets in Australia.
Key Points
- REIWA median house price reached $935,000
- House prices rose 5.6% during the quarter
- Annual house price growth remains strong at 16.9%
- Perth houses are selling in a median of 13 days
- Cotality median house value exceeded $1.09 million
- The pace has eased, but prices continue moving higher.
More Stock, But Still Not Much Supply
One of the biggest changes this quarter has been the increase in available stock.
Listings have risen materially from the record lows experienced over Christmas and early 2026.
At the end of June, REIWA reported approximately 6,144 properties listed for sale, up significantly from the lows seen earlier in the year.
Although listings have increased materially, Perth remains well below the approximately 13,000 properties traditionally associated with a balanced market.
So while buyers now have more choice than they did six months ago, supply remains well below long-term norms.
This helps explain why quality properties continue to attract strong competition despite softer sentiment.
While many capital city markets experienced weaker conditions during the quarter, Perth continued to record positive growth. That doesn’t mean we’re immune to the headwinds affecting the broader Australian market—but it does suggest our local fundamentals remain considerably stronger than many eastern states.
The Market Feels Different
This is probably the biggest change I’ve noticed on the ground.
Earlier this year it wasn’t uncommon to see:
- 50–70 groups through a home open
- 10–15 offers on quality properties
- buyers making decisions almost immediately.
Today, that intensity has eased.
Open homes might attract 20–30 groups rather than 70.
Competitive properties might receive five offers rather than fifteen.
But it’s important to keep perspective.
Five offers is still a strong result.
Three offers is still a competitive market.
The frenzy has eased.
The fundamentals haven’t.
Buyers are becoming more selective, more considered and slightly less emotional.
In many ways, that’s healthy.
Noise vs Fundamentals
One phrase I’ve found myself coming back to this quarter is:
Noise versus fundamentals.
Much of the current uncertainty stems from headlines.
– Federal Budget tax changes.
– State Budget.
– Rental reforms.
– Election promises.
– Negative gearing discussions.
– Capital gains tax changes.
– Interest rate speculation.
– Geopolitical events.
These things influence sentiment.
But they don’t instantly change the underlying drivers of the Perth market.
The fundamentals still look broadly the same:
- Population growth remains among the strongest in Australia
- Rental supply remains tight
- Construction costs remain elevated
- Housing delivery remains constrained
- Perth remains relatively affordable compared to many eastern states.
Property tends to move more like a slow-moving train than a race car.
Sentiment can change quickly.
Fundamentals usually don’t.
A Market Beginning to Split Further
The divergence between different parts of the market continues to become more apparent.
Affordable and middle-market housing remains well supported because people still need somewhere to live.
At the same time, some investor segments are beginning to adjust to the proposed Budget changes and tighter borrowing conditions.
Meanwhile, quality owner-occupier stock continues to perform strongly.
In fact, what I’m seeing increasingly is a flight to quality.
The properties attracting the strongest competition are often those with:
- strong owner-occupier appeal
- quality locations
- scarcity
- desirable school catchments
- long-term lifestyle appeal.
The weaker stock is taking longer to move.
The better stock still rarely lasts long.
What I’m Watching
A few themes I’ll be watching closely through the second half of the year:
- Whether increased listings continue to build
- How investors adapt following the Federal Budget changes, State Budget housing initiatives and WA rental reforms
- The impact of investor borrowing constraints on established housing
- Rental supply, particularly in owner-occupier-dominated suburbs
- Whether affordability pressures push more demand toward units and higher-density housing.
The recent Federal Budget changes have now passed Parliament, creating a clearer policy environment for property investors.
While the reforms primarily affect investors purchasing established housing, their longer-term impact on buyer behaviour remains uncertain.
We’re already seeing some investors reassess their strategies, while others are adapting by focusing on new housing, premium owner-occupier markets or simply taking a longer-term view.
History suggests periods of policy change often create uncertainty—but they can also create opportunity for buyers who remain focused on fundamentals rather than headlines.
A Thought Worth Sitting With
One of the easiest traps to fall into is waiting for certainty.
The challenge is that certainty rarely arrives before opportunity disappears.
We’ve seen this before.
When the 5% deposit scheme was introduced earlier than expected in late 2025, eligible properties moved sharply while many buyers chose to “wait and see.”
By the time the outcome became obvious, much of the opportunity had already been priced in.
Markets rarely announce when the best opportunities have arrived.
The moment of uncertainty is often the moment when the best opportunities appear.
That doesn’t mean rushing.
It means understanding the difference between temporary noise and lasting fundamentals.
And right now, Perth’s fundamentals still look remarkably strong.
The new tax settings may make property selection even more important. In an environment where holding costs matter more, owning a high-quality asset capable of compounding over many years becomes increasingly valuable.
Looking Ahead
The second half of 2026 may feel less frantic than the market we’ve experienced over the past two years.
That wouldn’t necessarily be a bad thing.
A market with a little more stock, slightly less urgency, and better-informed buyers can often create better decision-making.
For those focused on long-term wealth creation rather than short-term headlines, the conversation remains largely unchanged:
– Buy quality.
– Focus on fundamentals.
– Think beyond the next headline.
And remember that markets tend to reward patience far more often than prediction.
If you’d like a calm, no-pressure conversation about how these market conditions may affect your next move, we’d love to hear from you.
https://www.buyersadvocateperth.com.au/contact-us/
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— Review the previous Perth Property Market Update here → Perth Property Market Update Q1 2026
Disclaimer
The information in this market update is provided for general information only and does not constitute financial, legal or investment advice.
While every effort has been made to ensure the information is accurate at the time of publication, property markets are subject to change and past performance is not a reliable indicator of future results.
Readers should seek independent professional advice tailored to their personal circumstances before making any property or investment decisions. Buyers Advocate Perth, its directors, employees and associated entities accept no liability for any loss or decision arising from reliance on this publication.
