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According to Cotality’s latest Home Value Index, Perth dwelling values jumped 2.5 per cent in March and are now 7.3 per cent higher over the first quarter of 2026 – the strongest quarterly growth of any capital city.
In dollar terms, that quarterly lift has added roughly $69,000 to the city’s median dwelling value, pushing the median dwelling value past the $1 million mark to $1,017,698.
“Clearly this pace of growth is unsustainable, but continues to be supported by low supply, with advertised stock levels tracking about 40 per cent below the five-year average for this time of the year,” Cotality research director Tim Lawless said.
At an annual level, Perth values are now up 24.3 per cent, compared to 13.7 per cent nationally.
“Overall, the market has just been on fire in Perth,” Adam Burstein, managing director of Core Finance, said.
“It keeps building and I don’t see it slowing any time soon. It’s made things like the first home buyers grant nearly redundant as it’s capped at $750,000 – even in cheaper suburbs, there’s really not a lot of properties at that price point.”
Supply crunch
Burstein said that the core driver of prices has been the ongoing housing supply shortage in the city.
He said: “Demand has always been there, but the product hasn’t. The market is still extremely busy with both owner-occupiers and investors, especially around house and land. But there’s just not enough land to sell to the clients who want to buy it.
“The cheaper price points go faster, but across the board it’s tight. Even around the $1 million mark, it’s very hard to get into the market.”
The issue of supply is also influencing buyer behaviour. Recently, Broker Daily reported on the surge in bridging finance across Western Australia as home owners seek to secure their next property before putting theirs on the market.
Burstein said: “There’s definitely more interest in bridging finance, and more people acting on it. I’ve also seen more ‘subject to sale’ offers coming through.
“Agents are confident properties will sell quickly, so they’re more willing to accept those conditions.”
There have been some policy changes to attempt to address supply, such as expanding its stamp duty concession scheme for off-the-plan and under-construction homes.
Momentum extends beyond the capital
The strength in Perth is not occurring in isolation, with regional Western Australia also delivering some of the strongest growth conditions in the country.
Regional Western Australian values rose 2.2 per cent in March and are up 6.2 per cent over the quarter, outpacing every other regional market nationally.
“WA’s Bunbury is leading the pace of gains, with values jumping 8.4 per cent through the March quarter to be 22.2 per cent higher over the past 12 months,” Lawless said.
A sharply divided national market
While Western Australian markets surge, the broader national picture is becoming increasingly fragmented.
National dwelling values rose 0.7 per cent in March and 2.1 per cent over the quarter, but this headline hides significant divergence between cities.
Sydney and Melbourne have both moved into a mild downturn phase, with values slipping 0.1 per cent and 0.2 per cent, respectively, in March and down over the quarter.
“Since the end of November 2025, Melbourne values have retreated by -0.9 per cent and the Sydney market is down -0.4 per cent,” Lawless said.
“The softer trend in values coincides with falling auction clearance rates and a pickup in advertised supply, providing buyers with more choice and less urgency at the negotiation table.”
In contrast, mid-sized capitals continue to post strong gains. Brisbane (+1.8 per cent in March and +5.1 per cent quarterly) and Adelaide (+1.2 per cent monthly and +3.6 per cent quarterly) remain firmly in growth, alongside Perth and Darwin.
[Related: WA brokers warn of limitations of Help to Buy scheme]
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