Are house prices dropping in Perth?

No — based on the latest available market data, Perth house prices are not dropping overall.

While some buyers may be hoping for a correction after several years of strong growth, Perth’s property market is still showing upward price momentum. REIWA’s Perth market data, updated on 26 May 2026, shows Perth’s median house price sitting at $908,000 for the 12 months ending April 2026. REIWA also reported that Perth’s median house sale price recorded preliminary growth of 4.1% in the March 2026 quarter, rising to $890,000. (REIWA Public Website)

Other data sources point to the same broad trend. PropTrack reported that national home prices fell slightly in April 2026, but Perth still recorded monthly growth of 0.2%, alongside Brisbane and Adelaide. (Realestate)

So while the pace of growth may shift from month to month, the bigger picture is clear: Perth is not currently behaving like a falling market.

Why are people asking if Perth house prices are dropping?

There are a few reasons this question is getting more attention.

First, many buyers are exhausted. Perth prices have moved quickly, and affordability has become more difficult. Domain reported that Perth’s median house price surged through the $1 million mark in late 2025, with a 9.9% quarterly rise in the December 2025 quarter. (Domain)

Second, some national property headlines are focused on softer conditions in other capital cities. Cotality data reported by the ABC showed Perth house prices surged 7.3% in the first quarter of 2026, while Sydney and Melbourne had moved backwards from recent peaks. (ABC News)

This is where local context matters. A national headline about the Australian housing market does not always reflect what is happening in Perth.

Perth has been running on its own fundamentals: strong population growth, limited established housing supply, a tight rental market and years of relative underperformance before the recent boom.

Perth prices may slow before they fall

The more realistic question is not “are Perth house prices crashing?” but:

Is Perth’s property price growth starting to slow?

And yes – that is more of a possibility.

After a sharp growth period, markets often move from “very hot” to “still rising, but less aggressively”. REIWA noted that Perth property prices could exceed earlier growth expectations after a strong first quarter of 2026, but also said changes to consumer sentiment could ease pressure in the market. (REIWA Public Website)

This is an important distinction.

A slowing market does not necessarily mean a falling market. It may simply mean:

• Buyers become more selective
• Properties take slightly longer to sell
• Overpriced listings need to adjust
• Growth becomes suburb-specific
• The strongest competition remains around well-located, well-priced homes
• Borrowing capacity becomes the real constraint

For buyers, this can create opportunity, but it does not necessarily mean waiting will make property significantly cheaper.

What is keeping Perth house prices supported?

1. Low supply of homes for sale

REIWA described the 2025 Perth market as being defined by a persistent shortage of listings, with record-low stock levels emerging in winter and barely shifting. (REIWA Public Website)

Low supply matters because when there are not enough homes available, buyers compete for the limited stock that is on the market. Even if some buyer demand cools, a shortage of listings can keep prices supported.

More listings may come online at times, but Perth is still not in an oversupplied market.

2. A tight rental market

Perth’s rental market remains tight by historical standards. REIWA’s rental vacancy data shows Perth’s vacancy rate was 1.9% in April 2026, down from 2.0% in March 2026 and 2.4% in April 2025. (REIWA Public Website)

A tight rental market can support buyer demand in two ways.

First, some renters decide to buy because renting feels insecure or expensive. Second, investors may remain interested where rental demand is strong, even if borrowing conditions are tighter.

This does not mean every investment property is a good decision. It does mean Perth’s underlying rental pressure is still part of the property price story.

3. Construction and supply constraints

Australia is still dealing with housing supply challenges. ABS building approvals data for March 2026 showed total dwelling approvals fell 10.5% nationally in seasonally adjusted terms, while private sector dwellings excluding houses fell 26.0%. (Australian Bureau of Statistics)

WA has seen some improvement in approvals, with the WA Government reporting that building approvals rose to 25,050 homes over the year to February 2026, and building commencements increased to 23,830 new homes in 2025. (Our State Budget)

But new supply takes time to move from approval to completion. For buyers needing a home now, established properties remain the main battleground.

Yes, prices could fall in some areas or segments.

No market moves in a straight line forever. Perth could see price drops if several conditions come together, such as:

• A sharp rise in listings
• A drop in buyer confidence
• Higher unemployment
• Reduced borrowing capacity
• More investors selling
• Interest rate pressure
• A sudden increase in completed housing supply
• Policy changes that affect investor demand

But based on the current data, Perth does not appear to be in broad decline. The stronger possibility is a more uneven market, where some suburbs keep rising while others flatten or soften.

That means buyers should avoid treating “Perth” as one single market.

A renovated family home near schools may behave differently from an apartment in a high-supply pocket. A coastal suburb may behave differently from an outer growth corridor. A well-priced property may still attract competition, while an overpriced listing may sit and eventually discount.

What this means if you are buying in Perth

If you are waiting for Perth prices to drop before buying, the risk is that your borrowing capacity may become the bigger issue.

Many buyers focus only on the purchase price, but your ability to buy is shaped by:

• Your income
• Your deposit
• Your living expenses
• Your existing debts
• Your credit card limits
• Interest rates
• Lender assessment buffers
• Your employment type
• The lender’s policy
• Your timing and pre-approval strength

In a rising or competitive market, preparation matters.

A buyer who understands their borrowing capacity, deposit position and lender options may be in a stronger position than someone waiting for a market correction that may not arrive.

The goal is not to panic buy. The goal is to make a clear, informed decision based on your numbers.

What this means if you are refinancing

If your Perth property has increased in value, you may have more equity than you realise.

That can create opportunities to:

• Refinance to a sharper rate
• Consolidate debt
• Review your loan structure
• Access equity for investment
• Remove unnecessary loan features
• Create a debt reduction strategy
• Prepare for a future purchase
• Improve cash flow

But rising property values do not automatically mean refinancing is the right move. The lender will still assess your income, expenses, debts and ability to repay.

At Base Home Loans, we look at refinancing through a strategy-first lens. The question is not just “can we get a better rate?” It is “does this loan structure help you reduce debt, improve control and move closer to being mortgage-free?”

What this means if you are investing

Perth’s recent growth has made investors both interested and nervous.

On one hand, strong price growth and tight rentals can look attractive. On the other hand, buying after a major growth cycle requires discipline.

Investors should be careful not to rely on yesterday’s capital growth continuing at the same speed. Changes announced in the recent Federal budget may also play a determining factor for investors, depending on their strategy.

A better approach is to assess:

• Rental yield
• Vacancy risk
• Cash flow
• Long-term suburb fundamentals
• Borrowing capacity
• Tax position
• Exit strategy
• Maintenance costs
• Strata fees, if applicable
• Whether the property still works if growth slows

Perth may still offer opportunities, but not every property is a good investment simply because it is in WA.

Should first home buyers wait for Perth prices to fall?

For first home buyers, waiting can feel safer, especially when prices have moved so quickly.

But there are two risks with waiting.

The first is that prices may keep rising, even if at a slower pace. The second is that your borrowing capacity may not improve enough to offset future price growth.

That does not mean every first home buyer should rush. It means the decision should be based on your personal numbers, not headlines.

Before deciding to wait, first home buyers should understand:

• How much they can borrow now
• How much deposit they need
• Whether they are eligible for government schemes
• Whether a guarantor loan is suitable
• What repayments would look like
• What price range is realistic
• Which suburbs still fit their budget
• Whether their borrowing capacity is likely to improve soon

Sometimes the best strategy is not waiting for prices to fall. It may be adjusting the brief, buying differently, using a family guarantee, reducing debt, or getting finance-ready before the right property appears.

The bottom line: are Perth house prices dropping?

Right now, the answer is no — not overall.

Perth house prices are still being supported by tight supply, strong recent demand, low rental vacancy rates and ongoing housing supply constraints. However, the pace of growth may moderate, and the market is likely to become more selective.

For buyers, this means strategy matters more than ever.

For refinancers, it may be a good time to review equity and loan structure.

For investors, the opportunity may still be there — but the numbers need to work without assuming rapid future growth.

For first home buyers, the key is not trying to perfectly time the market. It is understanding your borrowing position, your options and your next best move.

Speak to a Perth mortgage broker before you make your next move

If you are wondering whether to buy, refinance, invest or wait, Base Home Loans can help you look at the numbers clearly.

We can help you understand your borrowing capacity, compare lender options, review your equity position and create a loan strategy that fits your life — not just the latest property headline.

Book a home loan strategy call with Base Home Loans before you make your next move in the Perth property market.

FAQs: Are house prices dropping in Perth?

Are house prices dropping in Perth in 2026?

No, Perth house prices are not currently dropping overall. REIWA and PropTrack data show Perth prices continued to rise in early 2026, although the pace of growth may vary by suburb and property type. (REIWA Public Website)

Is the Perth property market slowing down?

Possibly. Perth has had a very strong growth period, so a slower pace of growth would not be surprising. However, slowing growth is different from falling prices.

Will Perth house prices crash?

There is no strong evidence of a broad Perth property crash at the moment. Low supply, tight rental conditions and ongoing housing demand are still supporting the market.

Should I wait for Perth house prices to fall before buying?

Not necessarily. Waiting may help if the specific suburb or property type softens, but it can also backfire if prices continue rising or your borrowing capacity changes. It is better to understand your personal finance position before trying to time the market.

Why are Perth house prices still rising?

Perth prices are being supported by limited housing supply, strong buyer demand, tight rental conditions and ongoing construction constraints.

Are some Perth suburbs dropping in price?

Some suburbs or individual properties may soften, especially if they are overpriced, poorly presented or in less competitive segments. But that does not mean the whole Perth market is falling.

Is now a good time to refinance in Perth?

It may be, especially if your property has increased in value and you have built equity. Refinancing can help reduce repayments, restructure debt or access equity, but it should be assessed against your income, expenses and long-term goals.

Is Perth still a good place to invest in property?

Perth may still offer investment opportunities, but investors need to be selective. Strong recent growth does not guarantee future performance. Rental yield, cash flow, suburb fundamentals and lending structure all matter.

What should I do before buying in Perth?

Before buying, get clear on your borrowing capacity, deposit, repayments, lender options and pre-approval position. In a competitive market, being finance-ready can make a significant difference.

Can a mortgage broker help me decide whether to buy now or wait?

Yes. A mortgage broker can help you understand your borrowing position, lender options and repayment scenarios so you can make a more informed decision based on your numbers rather than market noise.

Disclaimer: The information provided on this blog is for general informational purposes only and does not constitute financial or professional advice. While we strive to provide accurate and up-to-date information, mortgage laws and regulations can change, and individual circumstances may vary. We recommend consulting with a qualified financial advisor or mortgage broker to assess your specific situation and needs. Base Home Loans is not responsible for any actions taken based on the content of this blog. Always conduct your own research and consider seeking professional advice before making financial decisions. The examples used here are illustrative in nature and do not reflect any actual people or clients.