Perth’s annual median sale price* growth slowed significantly over the September 2026 quarter.
After recording 5.3 per cent annual growth between December and March and 5.0 per cent growth from March to June, Perth’s annual median house sale price growth more than halved, dropping to 2.1 per cent between June and September.
Annual median unit sale price growth also slowed substantially, recording 2.5 per cent growth from June to September after rising 7.5 per cent between December to March and 5.2 per cent from March to June.
As a result of the slowdown, Perth’s annual median house sale price may fall short of $1 million by the end of the year. This would represent about 15 per cent growth since December 2025. Perth’s annual median unit sale price could increase 20 per cent growth over the calendar year to reach $720,000.
REIWA President Rob Mandanici said while the market was clearly slowing, annual median sale prices had already increased by 12.9 per cent growth for houses and 16.0 per cent for units since December 2025.
“REIWA reports on an annual median sale price, which is why growth is still showing. However, the sharp decline in the rate of growth between June and September highlights the significant changes over the past few months,” he said.
“Quarterly median prices for June and September are showing declines and we can expect the annual medians to reflect this trend as we move into 2027.
“However, conditions vary across Perth. Some areas of the market are still performing well, with properties selling quickly and for over the asking price, while sales activity has declined noticeably in other suburbs. Our members say the changes in demand are most significant in suburbs that previously saw high levels of first home buyer and investor activity.
“This is why it’s extremely important sellers and buyers speak to a local REIWA member to get the most up to date information on pricing and demand in their area.”
Mr Mandanici said the changes in the market were a clear reflection of changes in consumer sentiment, interest rate rises and the Federal Government’s changes to negative gearing and the capital gains tax discount.
“You should never underestimate the effect consumer sentiment can have on a market,” he said.
“The factors that have driven the WA market over the past few years remain, including a constrained building industry, high population growth, and a strong local economy. However, in recent months we have seen sales activity decline and the pressure on prices ease considerably. These changes are mostly due to a sharp decline in consumer sentiment.
“Buyers have been severely impacted by four interest rate rises this year. This has reduced their borrowing capacity significantly and, with the prospect of more rate rises, they are understandably wary of overextending themselves when buying a home.
“People are also affected by the rising cost of living, including high fuel costs, which is putting a lot of strain on household budgets.
“And the Federal Government’s changes to taxation policy have seen investors retreat from the established homes market.
“Unfortunately, first home buyers haven’t stepped in to fill the gap. They too are feeling the strain of poor housing affordability, interest rate increases, and the rising cost of living. Many seem to be sitting on the sidelines, hoping prices will fall further. However, many suburbs typically favoured by first home buyers have seen enormous growth over the past few years and any declines have been comparatively small.”
Perth rental market
Perth’s rent prices were stable over the September quarter. The median weekly house and unit rent prices were unchanged at $750** and $700** respectively.
While they held steady during the quarter, the median weekly house rent price has increased 7.1 per cent since December 2025, and the median weekly unit rent price has risen 2.9 per cent.
Mr Mandanici said stability shouldn’t lead to the assumption the rental market had eased.
“Rent prices still have the potential to increase by 5 to 10 per cent over the calendar year,” he said.
“And while the rate of growth has currently eased, rent prices are at record highs and rental affordability is at a record low. With the vacancy rate falling to 1.7 per cent at the end of September, the number of properties available for rent dropping below 2,000 recently, and homes leasing in a median of two weeks, it is still very difficult for tenants to find a property, let alone an affordable one.
“REIWA remains concerned about rental supply and the potential impact on conditions for tenants.
“We know investor purchasing activity in the established homes market has declined following the Federal Government’s changes to taxation policy. Existing investors are continuing to leave the market.
“The Federal Government is driving investors towards new builds to try and create more supply, but our colleagues in the building industry say that currently isn’t the case. Even if it were, WA’s already-constrained building industry is facing new challenges as it responds to the brick shortage.
“We are worried about housing availability and affordability for tenants. However, we caution policy makers against further regulation of the rental market. Policies like rent caps or rent freezes may make great headlines, but they don’t add to supply.
“We ask all levels of government to carefully consider the potential effects of policy changes. Supply is the solution to the issues we are facing, and we need a legislative environment that encourages and supports investment, not discourages it. Until governments or other providers can deliver a genuine alternative on a large scale, we remain heavily reliant on private investors to meet rental demand.”
Regional WA
Preliminary data shows the majority of WA’s regional centres also recorded a significant decline in the rate of annual median house sale price* growth between the June and September quarters.
Mr Mandanici said, like Perth, many of the regional centres had been affected by the interest rate increases, the rising cost of living, and taxation policy changes.
“While annual median house sale prices are still rising, the rate of growth has slowed significantly in Albany, Bunbury, Busselton and Esperance,” he said.
“The rate of growth also slowed in Broome and Geraldton, but not as sharply.
“While the rate of growth in the annual median fell considerably in Kalgoorlie-Boulder, it dropped from a huge 9.5 per cent in the June quarter to just over 5 per cent in the September quarter, which is still a very strong rate of growth. Karratha’s rate of growth was slightly higher than in the June quarter, while Port Hedland remained relatively stable.
“These three regional centres have been less affected by the changes in investor activity following the reforms to negative gearing and the capital gains tax discount. They offer strong rental yields and many opportunities for properties to be positively geared. In addition, Kalgoorlie-Boulder and Port Hedland are relatively affordable compared to other regional centres.
“As a result of the changes seen in the September quarter, we are revising growth expectations for several regional centres.
“By the end of the year, Albany is likely to see annual median house sale price growth of around 15 per cent, down from 20 per cent or more noted in REIWA’s previous forecast. Bunbury is likely to see growth settle between 10 and 15 per cent, down from 15 to 20 per cent. Our expectations for Geraldton have changed from around 20 per cent growth to closer to 15 per cent. Port Hedland is likely to achieve growth closer to 10 per cent, rather than 15 per cent.
“Our forecasts for Esperance and Karratha remain unchanged at up to 15 per cent growth. Broome also remains unchanged at growth of around 5 per cent.
“Busselton and Kalgoorlie-Boulder still have the potential to achieve growth of around 20 per cent by the end of the year.”
Mr Mandanici said rent price growth would vary across the regional centres.
“Rent price growth is likely to be low in Busselton, Esperance and Port Hedland,” he said.
“Kalgoorlie-Boulder is expected to be the top performer with around 20 per cent growth, while Karratha, Geraldton, Albany and Bunbury could record increases of 10 to 15 per cent over the calendar year.
“Rent prices could decline over the year in Broome, but this follows extremely strong growth of 25.0 per cent in 2025.
“However, as we have seen, market performance can change quickly, and as each regional centre has different conditions and drivers, I encourage buyers, sellers, investors, and tenants to speak with REIWA members in those areas.”
* REIWA publishes an annual median sale price based on pending and settled sales
** Correct as at 2 October 2026
