Perth Set to Lead National Property Price Surge by 2026
According to a recent analysis by KPMG, Perth is set to lead the national property price surge by 2026. This forecast indicates substantial growth in both house and unit prices, positioning Perth as the strongest market among Australian capital cities.
Projected Property Price Growth in Perth
KPMG’s Residential Property Outlook reveals that Perth’s house prices are projected to increase by 12.8% in 2026 and an additional 5.1% in 2027. Meanwhile, unit prices are expected to rise by 11.6% in 2026 and 3.9% in 2027.
Factors Driving Growth
- Rapid population growth in Perth.
- Limited housing supply creating upward price pressure.
- Continued affordability for first home buyers.
Dr. Brendan Rynne, chief economist at KPMG, highlights that house prices in Perth had already surged by 16.4% in 2025, making it the fastest-growing area in Australia. The current median house price stands at approximately $1,087,762, as reported by Domain.
Challenges and Government Initiatives
Despite the anticipated growth, a significant housing deficit persists. Rynne emphasizes the government must facilitate housing production to address this shortfall effectively. The Australian Government’s 5% Deposit Scheme has made a notable impact, helping over 21,000 individuals purchase homes since its launch in October. This scheme offers low-deposit loans and increased price caps for eligible buyers.
Market Trends and Future Outlook
Increasing demand and a shortage of housing will likely sustain property price hikes across all capital cities. Economic forecasts suggest a modest rise in property values, even with potential increases in the cash rate.
- Dr. Shane Oliver from AMP predicts national property prices could rise by 5-7% in 2026.
- Lower price points may see accelerated growth compared to the upper market sectors.
As a result, units may experience greater price increases at an estimated rate of 7% in 2026, while houses are projected to grow by 5%. The scenario indicates continued support for first-time buyers in navigating the property market.
