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Perth's Housing Market Continues to Thrive in 2026
As of February 2026, Perth's housing market shows no signs of slowing down, marking itself as the strongest capital city market in Australia. Recent data reveals that home values surged by 2.0% in January alone, with the median property value skyrocketing by an astounding $19,000 per month. This trend reflects the ongoing imbalance between supply and demand in the Perth real estate landscape.
The Unit Sector Takes Center Stage
In a remarkable shift from historical norms, the unit market has now overtaken traditional houses in annual growth, with an impressive 20.1% increase over the past year. The lower quartile of the unit segment has experienced an even more dramatic rise, recording a staggering 24.8% growth. These figures indicate a marked adaptation in buyer behavior; with rising prices forcing many consumers to target more affordable segments of the market, especially in high-density living options.
A Deepening Supply Shortage and Its Implications
Perth's housing market faces a persistent and dire supply shortage, with listings considerably below historical averages. In a context where new housing completions do not meet demand, the market is under significant pressure. The latest reports highlight that advertised stock is around 25% lower than the five-year average. This ongoing lack of housing supply is crucial in driving price increases for both houses and units, further complicating the landscape for potential first-time buyers.
Economic Pressures on the Horizon
However, the outlook for Perth's housing market is not without its challenges. Economic conditions at the national level, such as a recent 25-basis point interest rate hike, may dampen buyer confidence. Despite this, Perth's comparatively lower median property values and the high demand stemming from the region's robust economic conditions continue to keep its market buoyant. Removed from the hectic pricing of Melbourne and Sydney, Perth's trajectory is expected to remain relatively strong.
The Affordability Dilemma
The rising median house prices, now surpassing $1 million, evoke serious concerns regarding housing affordability. Households in Perth are spending approximately 39.5% of their income on median mortgages, a significant increase from 22.3% in 2019. This illustrates how ownership is becoming increasingly difficult, which aligns with findings from various analyses confirming a growing gap in housing affordability.
Future Trends in Property Investment
Looking ahead, the current dynamics of Perth's housing market suggest several potential investment opportunities. For those weighing options, engaging with lower-quartile units may provide an accessible entry point amidst escalating prices. Additionally, optimistic projections underscore the potential for price stabilization as the government and private sector work to enhance supply, balancing the competitive landscape.
Final Thoughts on the Perth Property Market
As we analyze Perth’s housing market in February 2026, the themes of growth, supply constraints, and affordability challenges resonate strongly. The implications of these trends extend beyond real estate investors, impacting anyone looking to navigate the current market waves. The notable resilience of Perth's property scene amidst changing economic conditions marks this as a pivotal time for potential buyers and investors alike.
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