WA’s strong run of price growth has pushed ownership further out of reach for many buyers. Perth’s median house price jumped 25% in 2024 and another 12% in 2025, while median unit values climbed 21.7% in 2024 and a further 18% last year.
Perth’s market finished 2025 with record medians of about $840,000 for houses and $590,000 for units, with unit prices outpacing houses as buyers shifted to more affordable options.
First-home buyers now face bigger deposits and higher borrowing requirements, while existing owners looking to upgrade are having to stretch their mortgages significantly.
“As affordability declines, you often see demand ease and price growth slow. However, a range of other factors can mitigate this,” said Suzanne Brown (pictured), REIWA president, in a media release.
And WA is not alone in facing these pressures. Australia’s median house price is racing towards $1.3 million after 12 consecutive quarters of growth, highlighting how fast affordability is eroding nationwide.
A suite of state and federal initiatives is helping buyers into the market, from the $10,000 First Home Owner Grant and First Home Super Saver Scheme to the Australian government 5% Deposit Scheme, Help to Buy shared equity options, and a range of low‑deposit loans and shared equity products via Keystart. The WA government also offers stamp duty concessions for first-home buyers.
“These schemes make homeownership more accessible, for example by reducing purchase costs or the need to spend years saving a large deposit,” Brown said. “However, by improving accessibility you bring demand forward. This can either create, or maintain, upward pressure on prices, depending on the existing state of the market.”
In today’s undersupplied environment, they are reinforcing already‑strong price growth rather than cooling it.
There are also checks and balances built in, the REIWA leader noted. The FHOG is limited to buyers who purchase or build a new home, the 5% deposit scheme is subject to price caps, and strong price growth has eroded the impact of some stamp duty concessions.
The final key driver in 2026 is availability, Brown said. In recent years, homes came to market in reasonable numbers and sold quickly, which kept active listings relatively low. But over the past six months, new listings in the established homes market have fallen well below long‑term averages.
By contrast, demand has remained extremely high.
“We saw FOMO return to the market in the latter part of 2025, with our members reporting strong competition for homes,” Brown said.
The significant imbalance between demand and supply saw active listings fall below 2,000 at the end of December. This scarcity of stock is adding further momentum to price growth, and unless conditions change materially, availability is expected to remain a key force driving WA’s housing market through 2026.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
