In a widely expected move, the Reserve Bank of Australia (RBA) has kept the official cash rate steady at 3.60%, following its November 2025 meeting. But what does that mean for buyers in the Perth property market?
After three rate cuts earlier this year (in February, May, and August), the RBA’s decision to hold comes amid rising inflation and global uncertainty. The September quarter data showed inflation increasing faster than expected, with the Consumer Price Index (CPI) climbing 1.3% over the quarter and annual inflation reaching 3.2%, pushing it outside the RBA’s 2–3% target band.
RBA Governor Michele Bullock reiterated the central bank’s “wait-and-see” approach, signalling that further rate cuts are unlikely until inflation stabilises.
What This Means for Borrowers
While many hoped for another rate reduction, the hold means borrowing costs are likely to remain steady for the time being. Still, with three earlier cuts in 2025 already improving serviceability, borrowers are in a stronger position than they were 12 months ago.
For home buyers and investors, now is a crucial time to review the options, check borrowing capacity, and make strategic moves before any new shifts.
The Perth Property Market: Still Going Strong
Despite broader economic uncertainty, Perth’s property market has been one of Australia’s standout performers in 2025, and it shows no sign of slowing down as we move into 2026.
Price Growth and Demand
According to REIWA, Perth property prices have grown by close to 10% this year, with some suburbs outperforming the average thanks to limited housing supply and strong population growth.
Unit and townhouse markets are particularly active, with medium-density housing recording annual price growth of around 14%, compared to roughly 9% for detached houses. This trend is being fuelled by affordability pressures and a shift in buyer preference toward lower-maintenance, lifestyle-driven living.
Tight Supply and Rental Pressure
Low listings continue to be a key driver of price growth. Perth’s vacancy rate remains among the lowest in the country, which has pushed rents higher and made yields more attractive for investors.
While rental growth has slowed slightly in recent months, units have outperformed houses, with annual rent increases around 10% for apartments compared to 4–5% for houses. This indicates that investors in the right areas can still achieve strong rental returns alongside capital growth.
Opportunities Heading Into 2026
1. First Home Buyers
With improved borrowing capacity following earlier rate cuts and government schemes still in play, 2026 could be a strong entry year for first home buyers. Perth remains one of the more affordable capital cities, offering opportunities to buy before prices climb further.
2. Investors
Tight rental supply, rising yields, and solid price momentum make Perth an attractive option for investors looking for both income and growth potential. Medium-density housing, including villas, townhouses and well-located apartments, appears set to outperform into 2026.
3. Refinancers and Upgraders
With rates stable and more competitive offers emerging, now is a good time for homeowners to review existing loans. A simple refinance could unlock better rates or free up equity for renovation, investment or debt consolidation.
4. Suburbs to Watch
Areas benefiting from new infrastructure projects, urban infill, or proximity to employment hubs are likely to see the strongest demand. Suburbs in Perth’s south-east and north-east corridors continue to attract attention from both first home buyers and investors.
Navigating the Market with Confidence
As the RBA holds rates steady and Perth’s property market continues to rise, borrowers should balance optimism with preparation. Having a clear understanding of borrowing capacity, repayment scenarios, and long-term goals will be key.
Whether you’re a first home buyer, refinancer, or investor, speaking with an experienced Perth mortgage broker can help you uncover opportunities that align with your financial position — and make 2026 a year of smart property decisions.
While interest rates remain on hold, the Perth property market continues to perform strongly. For those ready to act, the combination of solid growth, tight rental conditions, and improving borrowing capacity could make 2026 one of the most active years yet.
Please contact us to get started with a personalised finance solution for your home loan and property plans for 2026. You can book a discovery call directly into our calendar here to discuss borrowing capacity, equity, for a quick rate check, or any other home loan related enquiry!
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.
