Perth’s median house sale price* could reach $1 million by the end of the year, despite the softening in the market, according to REIWA’s 2026 property market quarterly update.
REIWA President Suzanne Brown said Perth’s median house sale price recorded growth of 5.3 per cent in the March 2026 quarter, followed by preliminary growth of 4.2 per cent in the June quarter to reach $938,000 at the end of June.
The median unit sale price* rose 7.0 per cent in the March quarter and recorded preliminary growth of 4.7 per cent in the June quarter to reach $675,000.
“There was a clear change to the property market in the June quarter,” Ms Brown said.
“We saw new listings return to longer-term averages. Demand eased, with both investors and first home buyers taking a step back following the Federal Budget. I also believe some buyers are waiting to see what happens in August and September with interest rates.
“This has altered both sides of the supply and demand equation. As a result, the number of sales has declined slightly and the time to sell a property has increased. This has created the feeling that the market is heading for a downturn, but the sales data currently tells a different story.
“Perth’s annual median sale prices are still increasing. We expect to see that growth continue throughout the year but at a lower rate than in the first and second quarters.
“If the median house sale price increases by 5 per cent over the next six months, it will be just shy of $1 million by the end of 2026. Stronger growth will see us exceed that milestone.
“Perth’s median unit sale price is on track to record over 20 per cent growth and exceed $750,000 by the end of the year.
“Should there be less growth, or even price stability, frankly, I think many people would welcome a more balanced market.”
Ms Brown said the fundamentals driving the market remained strong, although consumer sentiment had declined following three consecutive interest rate rises, the on-again-off-again conflict involving the United States and Iran, and the taxation changes announced in the Federal Budget.
“WA has a strong economy and is still recording strong population growth, which supports and drives housing demand. And while new home completions are back to long-term averages, we need to be building more homes than we currently are. This constraint on new supply is maintaining interest in the established homes market,” she said.
“However, you can never rule out the effect of sentiment on the market.
“Recently we’ve seen investors and first home buyers take a step back. Potential investors have been affected by the changes to negative gearing and the capital gains tax discount and are weighing up their options.
“The Federal Government may have expected first home buyers to rush in and take advantage of the reduction in competition, but they haven’t. Lending data supports the experience of our members on the ground and shows first home buyer activity has decreased more than investor activity.
“It’s an interesting situation. We’re hearing that a lot of first home buyers are listening to media reporting from the east coast and waiting for a significant fall in prices before they act. Our market is very different to Sydney and Melbourne, and they may be waiting a while.
“However, we are seeing strong activity in the upgrader market. Some people who were contemplating buying an investment property are instead investing that money in a new home, because you don’t pay capital gains tax on your principal residence. Others are just making the most of the easing in the market and increase in active listings and trading up to a better home.
“The Spring selling season is going to be very interesting.”
Author: REIWA
Source: reiwa.com.au
