Perth Property Market Update Spring 2026

/ Home Loans, interest rates, Perth / By

Perth property market update: what’s happening this spring

This Perth Property Market Update Spring 2026 covers a very different landscape from years past — traditionally one of the busiest periods for property, but not this year.

Property values are falling across most Australian capital cities, the likelihood of another interest rate rise has increased, and Perth’s housing market is finally showing signs of cooling after several years of rapid growth.

That does not mean the Perth market has crashed. Far from it.

Perth dwelling values were still 15.6% higher over the 12 months to August 2026, according to Cotality’s September Home Value Index. However, values fell by 0.8% during August and were 3.2% below their April peak.

For buyers, that may mean more choice and slightly less competition. For homeowners, it is a reminder that property prices do not move in one direction forever—and that borrowing costs still matter.

Australia’s property downturn is spreading

Australia’s national home values fell by 0.9% in August, marking the fifth consecutive monthly decline. Values are now 3.6% below the national peak recorded in March 2026.

The downturn has also become much broader. According to Cotality, 93% of capital city suburbs recorded a decline in property values over winter, compared with 45.8% during autumn.

Sydney recorded the largest monthly fall at 1.4%, followed by Melbourne and Canberra at 1.1%. Brisbane declined by 1.0%, while Perth and Adelaide both fell by 0.8%. Darwin was the only capital city to record an increase.

Buyer demand has also weakened. Cotality estimates that national sales volumes are 15.5% lower than a year ago, with transaction activity in Perth, Brisbane and Sydney down by more than 20%.

As properties take longer to sell, available stock is building. Across the capital cities, advertised listings were 24% higher than a year earlier—even though the number of newly listed properties was lower.

In plain English: fewer buyers are competing, homes are taking longer to sell, and vendors may need to be more realistic.

What is happening in the Perth property market?

Perth remains stronger than many eastern states, but the market is no longer running at the frantic pace seen during the previous few years.

The latest REIWA Perth market data for the week ending 20 September 2026 showed:

  • 634 property sales, compared with 862 during the same week last year
  • 7,755 properties listed for sale, up from 2,929 a year earlier
  • 5,463 houses, 1,642 units and 650 blocks of land available for sale
  • A Perth median house sale price of $960,000
  • A Perth median unit sale price of $690,000
  • A median house rent of $750 per week
  • A median unit rent of $700 per week

The standout figure is the increase in properties available for sale. Perth buyers now have substantially more choice than they did a year ago, while weekly sales activity is lower.

That is a significant change.

It does not automatically mean prices will collapse. Perth still has population growth, housing shortages and a tight rental market supporting demand. But sellers may no longer hold all the cards, particularly if a property is overpriced, poorly presented or located in a weaker pocket of the market.

For well-prepared buyers, this can create opportunities to negotiate conditions, take more time with due diligence and avoid making rushed offers simply because another buyer might beat them to it.

Another interest rate rise is looking increasingly likely

The Reserve Bank of Australia will announce its next cash-rate decision on 29 September 2026.

The cash rate is currently 4.35%, following three increases earlier this year. Expectations of another rise have strengthened, with Australia’s major banks forecasting that the RBA may lift the rate by a further 0.25 percentage points.

Inflation has eased slightly, with the annual headline rate falling from 3.8% in June to 3.5% in July. However, underlying inflation remained unchanged at 3.6%—still above the RBA’s 2% to 3% target range.

Household spending has also remained stronger than expected, while higher global oil prices and geopolitical tensions are adding to inflation concerns.

Some economists now believe borrowers could face more than one additional rate increase. As reported by Yahoo Finance, financial markets have been pricing in the possibility of further tightening extending into 2027.

Based on a $600,000 mortgage over a 30-year term at a typical variable rate, a 0.25 percentage-point rate rise could add approximately $97 to the monthly repayment.* A 0.5 percentage-point rise would add closer to $196 per month.

*Example only, for illustrative purposes, based on rate and repayment modelling as at September 2026. Actual repayment changes depend on your loan amount, interest rate, loan term and repayment type. This does not constitute a repayment quote or financial advice.

That may not sound catastrophic in isolation, but for households already dealing with higher food, fuel, insurance and utility costs, it is another hit to the budget.

Should you fix your home loan rate now?

Fixed rates have already started moving higher at several lenders, which suggests the banks are preparing for funding costs and interest rates to remain elevated.

However, fixing your loan solely because rates might rise can be a poor decision.

A fixed rate may provide repayment certainty, but it can also limit extra repayments, restrict access to certain loan features and create break costs if you refinance or sell during the fixed period.

Before fixing, compare:

  • The fixed rate against your current variable rate
  • The length of the fixed-rate period
  • Extra repayment restrictions
  • Offset or redraw availability
  • Break costs and your likely future plans
  • Whether splitting the loan between fixed and variable portions would be more suitable

The right structure depends on your loan, budget and plans—not on a dramatic headline.

What should Perth buyers do now?

If you are planning to buy this spring, getting your finance properly assessed before making an offer is more important than ever.

Higher interest rates reduce borrowing capacity, and online calculators frequently provide a misleading picture of how much a lender will actually approve.

A proper pre-approval can help you understand:

  • Your realistic borrowing capacity
  • The deposit and purchasing costs you will need
  • The repayments at current and potentially higher interest rates
  • Which lenders are likely to suit your circumstances
  • Whether you qualify for a government guarantee or an LMI waiver
  • How quickly you can obtain formal approval after finding a property

More listings and softer buyer demand may improve your negotiating position, but that advantage is useless if your finance is not ready.

What should existing homeowners do?

Do not wait for another RBA announcement before checking your mortgage.

If you have not reviewed your home loan during the past 12 months, your rate may no longer be competitive. Even if refinancing is not appropriate, your existing lender may be willing to reduce your rate when challenged.

At Fox Mortgages, we can review your current loan, compare it with alternatives from across our lender panel and calculate whether refinancing would deliver a genuine saving after fees.

Sometimes refinancing makes sense. Sometimes negotiating with your existing lender is the better move. Sometimes the savings are not large enough to justify changing anything.

We will tell you which one applies—not manufacture a refinance simply for the sake of it.

The bottom line

Perth’s property market is cooling, but context matters.

Values declined during August and listings have increased sharply, yet Perth property prices remain considerably higher than they were a year ago. Buyers may now have more choice and negotiating power, while homeowners still face the possibility of further interest rate rises.

Whether you are buying, refinancing or simply wondering whether your current rate is competitive, now is the time to get the numbers checked.

Speak with Fox Mortgages today for a straightforward review of your borrowing position or existing home loan. Book an appintment.

This information is general in nature and does not take into account your objectives, financial situation or needs. Consider obtaining advice specific to your circumstances before making a financial decision.

Sources

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