Perth Property Market Update March 2026: Prices Keep Climbing Despite Rate Rise

Published 23 March 2026 · Follio Research · 4 min read

Perth’s property market has entered 2026 with extraordinary momentum. Despite the RBA lifting the cash rate by 25 basis points in February, Perth house prices grew 2.3% for the second consecutive month, pushing the median to $984,000. Here is what the data says.

Perth House Prices Rose 2.3% in February 2026

Perth recorded identical monthly growth in both January and February 2026, suggesting the strong start to the year is not a blip. Prices have risen nearly $44,000 since 1 January. The Perth median house price is projected to hit $1,000,000 within weeks and $1,075,000 by mid-year, a potential $134,000 gain in just six months.

Unlike Sydney and Melbourne, the Perth property market has not reacted sharply to either rate cuts or rate rises. The underlying driver is structural: a severe and persistent shortage of homes for sale.

Perth Housing Supply Remains Critical

Active Perth property listings sit at just 2,753. A balanced market requires 10,000 to 12,000. The weekly sales to listings ratio has held at around 30%, meaning roughly one in three listed properties sells every week. Once this ratio exceeds 25%, Perth property prices tend to accelerate rapidly, and it has been above that level for an extended period.

Construction approvals in WA are trending upward, with 2,272 approvals in January 2026 alone. However, commencements have plateaued near 5,500 to 5,700 per quarter, pointing to capacity constraints in the building sector rather than a shortage of demand to build. WA has accumulated a cumulative housing shortfall of nearly 23,500 dwellings since late 2022.

Perth Rental Market: $720 Per Week Median Rent

Perth’s median weekly rent has increased from $650 in mid-2024 to $720 in February 2026, a rise of around 10% over 18 months. The vacancy rate sits at approximately 2.6%, just inside the 2.5% to 3.5% range considered balanced. Rental listings have shown no meaningful growth despite increased investor activity, keeping upward pressure on Perth rents.

First Home Buyers and Investors Competing for the Same Homes

The expanded First Home Guarantee Scheme lifted Perth first home buyer loans by nearly 10% quarter on quarter, from 3,472 to 3,811. However, the average loan size jumped from $537,000 to $580,000 over the same period. Adjusting for underlying trends, around $25,000 of that increase appears directly linked to the policy change, exceeding the typical LMI saving of $20,000 and leaving buyers worse off overall.

Investor lending has risen in parallel, with average investor loan sizes now nearly identical to first home buyer loans. Both groups are competing for the same Perth properties at the same price points.

Interest Rates and Perth Property: What Comes Next

Headline inflation reached 3.8% in January 2026, marking seven consecutive months above the RBA’s 2% to 3% target band. Further rate rises are expected in 2026. A 1 percentage point increase in mortgage rates typically reduces borrowing capacity by 8% to 12%, which will eventually weigh on Perth property demand.

The Perth property market outlook for 2026 depends on two competing forces: persistent housing undersupply and tightening monetary policy. Unless supply increases significantly, structural demand is likely to keep supporting Perth house prices in the near term, even as growth moderates from its current pace.

Disclaimer: This article is for general informational purposes only and does not constitute financial or investment advice. Source data: Cotality, REIWA, ABS, RBA.