Perth leads Australia in 2026
Perth has cemented its status as Australia's strongest-performing property market heading into 2026. CoreLogic data shows Perth dwelling values rose approximately 9% in the year to early 2026 — the highest of any capital city — with leading economists forecasting a further 4–8% growth through 2026, supported by strong interstate migration, constrained supply, and continued resources sector strength.
What is driving Perth's growth?
Western Australia's unemployment rate remains amongst the lowest in the country at around 3.5–4%, underpinned by the resources and construction sectors. Net interstate migration into WA continues at elevated levels, particularly from eastern state renters priced out of Sydney and Melbourne. Housing supply remains constrained — residential construction completions have not kept pace with population growth, and median days on market sit at historically low levels.
RBA rate outlook for borrowers
The RBA delivered four consecutive rate cuts through 2025, bringing the cash rate to approximately 3.85% by early 2026. For existing mortgage holders, each 0.25% cut reduces repayments on a $600,000 loan by around $100/month. However, many borrowers remain on back-book rates 0.3–0.8% above what new customers receive — a refinance review is essential to capture the full benefit of the rate-cutting cycle.
First home buyers: the window of opportunity
The combination of falling rates, the $10,000 FHOG, stamp duty exemptions under $500,000, and the Federal 5% Deposit Scheme (5% deposit, no LMI) creates a compelling window for Perth first home buyers. Buyers with pre-approval are in a significantly stronger position in today's competitive market.