17 Jan Perth Market Spotlight: Units Lead the Charge Amid Broader Housing Growth in 2026
Perth’s property market continues to outperform most Australian capitals in 2026, with units and townhouses now clearly leading the current growth cycle. Updated market data shows that these more affordable dwelling types are rising in value at a faster pace than detached houses, a shift driven by persistent supply shortages, strong buyer demand, steady migration flows, and lifestyle preferences favouring low-maintenance living.
While affordability challenges and flat sentiment are weighing on several east-coast markets, Perth stands apart with its rare combination of accessibility, growth momentum, and long-term structural stability.
Market Snapshot: What the Numbers Show in 2026
- House prices are on track for another solid annual rise of 8–10%.
- Unit prices are expected to climb by 12–15%, extending the trend of units outperforming houses.
- Median values for both dwelling types have reached fresh highs, supported by strong demand in suburbs offering connectivity, amenities, and relative affordability.
This marks a clear departure from the pre-2024 market, when houses were the dominant asset class for capital gains. Today, buyers increasingly turn to units and townhouses as price pressures reshape purchasing behaviour.
Perth’s rental market remains extremely tight, with vacancy rates hovering near historic lows. Rents for houses and units continue to rise though at a steadier pace compared with the sharp and unsustainable spikes recorded in 2023–2024.
Key Drivers Behind Perth’s Ongoing Upswing
1. Superior Affordability Compared with East-Coast Capitals
Perth remains significantly more attainable than Sydney, Melbourne, and Brisbane. Units and townhouses, in particular, offer accessible entry points for first-home buyers, downsizers, and yield-focused investors seeking value without compromising lifestyle.
2. Persistently Low Supply
Despite elevated construction activity, listing volumes remain well below the long-term average. New completions continue to lag behind demand especially in the lower to mid-range price brackets resulting in ongoing price pressure across the city.
3. Population Growth and Interstate Migration
Western Australia’s economic strength and lifestyle appeal continue to draw new residents. This inflow is supporting both rental and owner-occupier markets, particularly in accessible suburbs suited to entry-level buyers and young families.
4. Lifestyle Preferences Favouring Low-Maintenance Homes
In 2026, buyers increasingly prioritise convenience, flexibility, and proximity to amenities. Villas, modern units, and townhouses offer manageable, low-upkeep living, an appealing alternative to standalone homes with higher maintenance requirements.
5. Rental Market Tightness Sustains Investor Demand
With vacancy rates still near record lows, rental markets remain highly competitive. Although rental growth has moderated, the continued shortage of rental stock keeps yields attractive, especially in areas close to major employment hubs.
What This Means for Key Market Participants
Owner-Occupiers & First-Home Buyers
2026 presents a favourable environment for purchasing units or townhouses in well-positioned suburbs. Competition remains intense, so buyers should be prepared to move quickly and prioritise areas with strong long-term fundamentals.
Investors
Investors continue to benefit from high rental demand and healthy yields. Units offer compelling opportunities, while well-established houses in growth corridors provide dependable long-term capital appreciation.
Market Observers & Lenders
The widening performance gap between units and houses signals a structural shift in buyer behaviour. Lenders can expect continued credit demand from first-home buyers, relocating professionals, and investors seeking yield-backed properties.
Strategic Insights from Property Finance Invest (2026 Outlook)
Balanced Portfolio Strategy: Yield + Growth
With strong performance across both units and houses, balanced portfolios remain advantageous.
- Units: Potential for stronger yields in 2026
- Houses: Stable, long-term capital growth in key suburbs
Location & Connectivity Matter More Than Ever
Suburbs with strong amenity access transport, education, retail, and job clusters continue to outperform. Infrastructure investment remains a key driver of capital resilience.
Supply Constraints Will Likely Persist
Monitoring construction pipelines, building approvals, and development capacity is crucial to forecasting price trajectories throughout 2026 and into 2027.
Strong Conditions for Yield-Focused Investors
With Perth’s sustained rental shortage, smaller dwellings in well-located areas offer reliable returns and low vacancy risk.
Adaptability Is Essential
Interest rate shifts, migration changes, and broader economic trends may influence demand cycles. Flexible, long-term strategies remain the safest and most effective approach.
Key Indicators to Watch in 2026
- Housing supply and new completions—a critical factor in determining price pressure
- Interest rates and lending conditions—directly shaping purchasing power
- Population growth and migration patterns—important for long-term demand
- Rental vacancy rates and rental inflation—key for investor decision-making
- Affordability constraints and buyer preferences—guiding the performance across dwelling types
Conclusion: Perth’s 2026 Market Shows Strong Fundamentals and Evolving Preferences
Perth’s property market in 2026 reflects a mature, resilient, and opportunity-rich environment. Units and townhouses are now at the forefront of the growth cycle, while houses continue delivering steady long-term gains. The broader shift toward affordability, convenience, and practicality is reshaping buyer behaviour and creating new strategic openings.
With tight supply, strong demand, and enduring appeal across both rental and purchase markets, Perth remains one of Australia’s most compelling investment and lifestyle destinations.
Property Finance Invest will continue tracking market movements, supply conditions, rental dynamics, and demographic trends throughout 2026 to help clients make informed and strategic decisions in this fast-evolving landscape.