Property Market Update January 2026
As we officially bring in the New Year, it’s time to review where the Perth housing market is at, so you feel informed when you start searching for your new home, and/or selling your current one.
As of January 2026, the median house price to sell has surpassed $1 million, with property values rising 15.9% over the past year. We’ve also seen a decrease in the average time properties stay on the market in capital cities, with Perth being the lowest at 9 days, and regional homes in Western Australia at 16 days.
Perth’s severe housing shortage accounts for this, with an increasingly evident disconnect between the number of available homes and buyer activity. Despite Perth’s growing affordability issues and serviceability constraints, the low number of available homes and government-driven incentives for first-home buyers currently outweigh these challenges.
However, specifically due to the increasing lack of affordability in Perth, more prospective buyers are turning to units, townhouses, and apartments as a result of these pressures. These options have especially been appealing to first-home buyers who prefer to live in closer proximity to the city, and those interested in popular lifestyle areas.
Northern suburbs such as Viveash and Woodlands, and southern suburbs such as Spearwood, Melville and Alfred Cove have seen an increase in house prices over the past year of up to 35%, whereas northern suburbs such as Jolimont, Bayswater and Mount Lawley and southern suburbs such as Mount Pleasant, Applecross and Bicton saw an increase in unit prices of up to 51%.
Rental prices have also increased, though to a much lesser extent, at around 4.5% for both units and houses. While rental prices have grown slightly more stable than in previous years, the 2% vacancy rate has led to continued intense competition in both inner and outer city suburbs.
Thus, given the changing market, as prospective buyers and sellers move into 2026, they should aim to stay up-to-date with housing trends, especially evaluating the differences between suburbs, so that they are making the most well-informed decision for themselves.
Sources:
Yardney, M. (2026, January 15). Everything you need to know about the state of Australia’s property markets in 20 charts – January 2026. Property Update. https://propertyupdate.com.au/everything-you-need-to-know-about-the-state-of-australias-property-markets-in-charts/?utm_source=chatgpt.com#each-state-is-running-its-own-race
Lawless, T. (2025, December 20). Perth housing market update [video] | December 2025. Property Update. https://propertyupdate.com.au/perth-housing-market-monthly-update-video/
Francis, C. (2026, January 19). Perth property hits new highs as prices surge, listings dry up and affordability tightens. Australia Propety Investor. https://www.apimagazine.com.au/news/article/perth-property-hits-new-highs-as-prices-surge-listings-dry-up-and-affordability-tightens