Perth Property Market Update May 2026: Growth Eases as Supply Builds and Affordability Bites

Published 20 May 2026 · Follio Research · 8 min read

Perth’s property market continues to lead the nation, but early signs of moderation are emerging. Dwelling prices rose 2.1% in April – the lowest monthly increase of 2026 – lifting the median house price to just over $1.027 million. Annual growth has accelerated to approximately 26%, though the pace of monthly gains is beginning to ease.

The supply picture is shifting. Listings have surged 140% since January, rising from around 1,862 to approximately 4,459 by early May – the highest level in nearly a year. At the same time, weekly sales have trended lower, with the most recent week recording just 694 transactions. The sales-to-listings ratio has fallen from the mid-20% range to around 16%, indicating that demand is no longer absorbing new stock at the same pace.

Rental conditions remain structurally tight, with vacancy rates declining to around 2.0% and rents stabilising at approximately $730 per week. Affordability constraints appear to be limiting further rent increases despite ongoing undersupply.

The macroeconomic environment is tightening. With inflation at 4.6%, the cash rate at 4.35%, and monthly mortgage repayments rising by approximately $830 since January, affordability is increasingly binding. Perth’s accumulated housing deficit of around 26,000 dwellings remains a significant buffer against sharp price falls, but the market is clearly transitioning toward a more moderate phase.

Prepared by Ryan Brierty, Chief Economist, Follio.