Perth’s property market has been one of Australia’s strongest performers in recent years, defying national trends with solid growth and consistent demand. But as we head towards 2026, the big question on many homeowners’ and investors’ minds is: is the Perth property market finally slowing down?
Is the Perth Property Market Slowing Down
The Perth property market is showing signs of slowing, but not declining. Growth is moderating after rapid gains, with rising interest rates and affordability pressures balancing demand. However, strong migration, low supply, and a resilient economy suggest prices will stabilise rather than fall heading into 2026.
What’s Been Driving Perth’s Growth
Over the past few years, Perth has experienced a remarkable upswing in property prices. Strong population growth, record-low rental vacancies, and limited housing supply have all played a part. Western Australia’s economy, fuelled by mining, construction, and infrastructure projects, has also helped underpin buyer confidence and housing demand.
This combination of factors saw Perth outperform most other Australian capitals. In 2024 and 2025, many suburbs recorded double-digit price growth, while rental yields remained among the highest in the country. However, after such a strong run, signs of moderation are beginning to appear.
Early Indicators of a Slowdown
While the market remains robust, experts are starting to note a gradual cooling in certain segments. The pace of growth is slowing rather than reversing. Some outer suburbs that saw rapid gains are now levelling off as affordability becomes a concern.
Higher interest rates have also started to influence borrowing power. Many buyers who could once stretch for a larger loan are now scaling back, creating more balance between supply and demand. Auction clearance rates have softened slightly, and properties are staying on the market a little longer than they did a year ago.
However, it’s important to note that this doesn’t mean prices are falling. Instead, the market appears to be shifting from a rapid growth phase into a more sustainable period of stability.
Why Perth Still Has Room to Grow
Even with signs of cooling, Perth remains one of the most affordable capital cities in Australia. This continues to attract both first-home buyers and interstate investors seeking value and stronger returns.
Population growth in Western Australia is expected to remain high, fuelled by overseas migration and employment opportunities in key industries. Meanwhile, new housing supply is struggling to keep up, with construction costs and labour shortages slowing the delivery of new builds. These factors suggest that any slowdown in price growth will likely be modest and short-term.
Outlook for 2026
Heading into 2026, most analysts expect Perth’s property market to stabilise rather than decline. Price growth may ease to more moderate levels, around 3 – 5% annually, reflecting a balanced market rather than a downturn.
In short, Perth is unlikely to experience a major correction. While the pace of growth may cool, strong economic conditions, population growth, and limited housing supply should keep the market healthy and resilient.
So, is the Perth property market slowing down going into 2026? Yes, but only slightly. The city is moving from an overheated phase to a steadier one. Buyers and investors can expect less competition, slower price increases, and more opportunities to negotiate,without the fear of a significant drop in values.