Western Australia’s property market has emerged as one of the strongest in the country over recent years, offering a mix of affordability, lifestyle appeal, and exceptional growth potential. 

Whether you’re a seasoned investor or a first-time buyer, understanding the latest trends and forecasts is crucial to making the right decisions.

In this article, we’ll break down how the WA and Perth property markets performed in 2025 and highlight expert forecasts and top suburbs to watch in 2026, helping you identify the best opportunities across the state.

What did the Perth and Western Australian property markets look like in 2025?

Western Australia was one of the undisputed standouts of the 2025 property market, delivering boom-time conditions that eclipsed the eastern states. According to market data, Perth dwelling values surged by approximately 13.0 per cent over the year, pushing the median property price well past $900,000. This momentum was driven by a perfect storm of relative affordability, a strong local economy, and renewed buyer confidence following interest rate cuts early in the year.

The defining feature of the market was a severe imbalance between supply and demand. Total listings plummeted to historic lows, tracking nearly 50 per cent below the five-year average, which created a high-pressure environment for buyers. Properties sold rapidly, with the median time on market dropping to just nine days in November as competition for limited stock intensified.

Regional Western Australia mirrored this strength, with coastal markets like Mandurah and Busselton attracting intense activity. Investors and owner-occupiers alike competed for value, while a robust resource sector buoyed employment and housing demand in key mining hubs. For investors, the state remained the nation’s yield capital, with vacancy rates hovering near a critical 0.6 per cent and gross rental yields exceeding 5.0 per cent in many areas.

Tim Lawless, Research Director at Cotality, highlighted the supply constraints underpinning this growth. He noted, "Perth continues to lead the nation... driven by supply tracking 45% below the 5-year average."

Perth and Western Australia property market forecast and price predictions 2026

National property values are projected to reach new record highs in 2026 as interest rate cuts reignite buyer demand, and Western Australia is forecast to be the strongest performer in the country. While the frantic pace of recent years may moderate, analysts from PropTrack and SQM Research still predict double-digit growth of between 10 and 16 per cent for Perth. Westpac's outlook is slightly softer at 8 per cent for the year ahead. The drivers are structural and acute: the state has the fastest population growth in Australia, a rental vacancy rate stuck at crisis levels, and a listing supply that is roughly 40 per cent below equilibrium.

REIWA President Suzanne Brown highlights the solid fundamentals supporting the market, stating, “Looking ahead to 2026, we see population growth, and positive economic conditions supporting ongoing strength... REIWA predicts growth of around 10 per cent in 2026.”

This pressure is spilling over into the regions, with some areas now outperforming the capital. Bunbury and Albany are identified as top picks for 2026, with forecasts of 10 to 15 per cent growth driven by infrastructure projects and a severe shortage of established homes. Geraldton is also highlighted as a "sleeping giant" waking up due to major port and hospital investments.

For investors, the yield story in WA remains compelling. Mining hubs in the Pilbara, such as Karratha and Port Hedland, are delivering gross yields of 11 to 12 per cent, attracting east coast investors priced out of their local markets. However, experts warn that these markets can be volatile. A safer bet for capital growth appears to be the affordable coastal corridors south of Perth, where the "lifestyle tax" is still lower than on the east coast. Overall, most Western Australia property market predictions suggest 2026 will be another year of seller dominance in the West.

What are the best suburbs to invest in Perth and Western Australia in 2026?

We've put together a list of ten of Perth and Western Australia's top investment suburbs for 2026 according to OpenAgent analysis of short-term and long-term growth patterns, listing activity, selling speed and rental yields. 

Spearwood, WA 6163

Perth's Spearwood has seen explosive growth, with median house prices hitting $870,000 after a +27.0 per cent annual rise. It has nearly doubled in value over five years (+97.2 per cent), driven by buyers seeking value near the coast and Fremantle. The suburb offers a solid rental yield of 4.4 per cent and a median weekly rent of $675. Its large blocks and proximity to Coogee Beach make it a prime target for families and investors alike.

Riverton, WA 6148

Riverton is a high-demand family Perth suburb with a median house price of $1,235,000. It recorded exceptional annual growth of +27.6 per cent, supported by its location within sought-after school catchments and near the Canning River. The market has surged +92.4 per cent over five years, reflecting the premium buyers place on this riverside lifestyle. With a median rent of $775 per week, it attracts established tenants looking for quality homes and amenities.

Dunsborough, WA 6281

Dunsborough is a premier lifestyle destination in the Margaret River region with a median house price of $1,200,000. The market has surged +29.2 per cent in the last year, supported by a massive five-year growth of +95.9 per cent. It attracts high-net-worth holidaymakers and sea-changers drawn to the pristine waters of Geographe Bay. With a rental yield of 3.4 per cent and median weekly rent of $760, it commands significant income during peak seasons. Its boutique retail precinct and proximity to world-class wineries ensure it remains a blue-chip regional address.

Ferndale, WA 6148

Ferndale offers a value-driven entry point near the Canning River with a median house price of $800,000. It has achieved +23.5 per cent growth in the last year and +94.4 per cent over five years as buyers ripple out from more expensive neighbouring suburbs. Investors benefit from a strong rental yield of 4.9 per cent and a median weekly rent of $700. The suburb is known for its extensive parklands and walking trails, appealing to nature-loving tenants.

South Bunbury, WA 6230

South Bunbury offers coastal living with city convenience, recording a median house price of $677,500. It has matched Dunsborough’s pace with +29.2 per cent annual growth, while five-year growth stands at +88.2 per cent. The suburb is popular for its mix of character homes and proximity to the Back Beach and Bunbury CBD. Investors benefit from a solid rental yield of 4.8 per cent and a median weekly rent of $580. It remains a top choice for families seeking an active lifestyle near major amenities.

Wembley, WA 6014

Wembley provides a highly accessible entry into the prestigious western suburbs of Perth with a median unit price of $420,000. The market has grown +23.5 per cent over the past year, offering an affordable alternative to the area’s multi-million dollar houses. Over five years, unit values have climbed +82.6 per cent, highlighting the demand for low-maintenance living near the CBD and coastline. Its leafy streets and proximity to Herdsman Lake make it a consistent favourite for professionals.

Mount Tarcoola, WA 6530

Mount Tarcoola provides excellent value in the Geraldton market with a median house price of $558,000. It has achieved +26.8 per cent growth over the past year and a near-doubling of values (+95.8 per cent) over five years. The suburb is favoured for its elevated position, offering ocean views and easy access to the town centre. With a rental yield of 5.4 per cent and median rent of $550, it delivers strong returns for investors. Its established schools and parks make it a reliable performer for family tenants.

Mosman Park, WA 6012

Mosman Park offers a rare opportunity to buy into one of Perth’s most exclusive postcodes with a median unit price of $485,000. The sector has surged +27.6 per cent in the last 12 months, driven by buyers wanting the river-to-ocean lifestyle without the premium price tag. It has recorded +66.5 per cent growth over five years, benefiting from its position between the Swan River and Cottesloe Beach. The suburb’s train station and boutique dining scene ensure high demand from tenants and owner-occupiers.

Toodyay, WA 6566

Toodyay offers a historic tree-change opportunity in the Avon Valley with a median house price of $615,000. The market grew +26.3 per cent in the last 12 months, driven by buyers seeking space and heritage charm within commuting distance of Perth. It has recorded +95.2 per cent growth over five years, reflecting the post-pandemic shift towards regional lifestyle locations. The town features a vibrant main street, river access, and a strong community spirit. It appeals to those wanting a rural atmosphere without total isolation.

Eden Hill, WA 6054

Eden Hill is a quiet achiever in Perth's north-east with a median house price of $765,000. It has delivered +23.4 per cent annual growth and a massive +95.4 per cent over five years, reflecting its growing popularity among families. The suburb offers a healthy rental yield of 4.9 per cent with a median weekly rent of $663. Located near the Swan Valley and the Bassendean train line, it combines connectivity with a relaxed, leafy atmosphere.

Disclaimer: Rankings use OpenAgent’s internal weighted scoring of price growth, days on market, listings and indicative yield. General information only—not financial advice; figures are estimates; past performance is not reliable. Always seek independent advice.