February 4th, 2026
January 2026 housing update: where value is emerging in early 2026
Market insights
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Property investors eyeing houses in Perth for affordability reasons might be in for a shock, with the city’s median value tipping past $1 million for the first time. It follows strong house price growth of more than 18% in the past 12 months, according to Cotality’s latest data.
Perth is the fourth Australian capital city to boast a million-dollar median price tag, alongside Sydney, Melbourne and Canberra.
Perth’s numbers at a glance
| Median house value and 12-month growth | $1,003,804 (+18.4%) |
| Median house value and 12-month growth | $699,814 (+20.1%) |
| Value growth in past five years | +89.2% |
| Profitability rate | 98.2% |
| Median resale profit | $355,450 |
Perth’s $1 million milestone isn’t a one-off spike
The milestone has been years in the making. Perth recorded 89.2% price growth in the past five years, the highest of all capital cities and nearly double the national figure of 46.1%.
The city’s boom has spilled well beyond the metro area, with regional WA house prices surging 17.6% over the past year, making it the strongest-performing regional market in the country.
The growth signals that Perth is no longer the “cheap” capital it once was. But the appeal remains: it still offers relative value compared to the east coast’s larger capitals.
Investors are borrowing more and backing Perth harder
Investor behaviour is reinforcing the price story. The average loan size for investor dwellings in WA has climbed to $589,000, according to Australian Bureau of Statistics (ABS) data. That’s an increase of $208,000 since 2020, or more than 54% in five years.
Bigger loan sizes point to rising purchase prices but also growing confidence. Investors are committing more capital to Perth, suggesting they expect rents, values or both to continue moving in the right direction.
Profits are still the norm, not the exception
Most Perth property owners do appear to be reaping the rewards. Thanks to rapid price growth, Perth remains one of the most profitable capital city markets for sellers. Owners selling up made profits from around 98.2% of resales in Perth at a median profit of $355,450. Perth’s profitability rate is higher than the national benchmark of 95.5%.
For existing owners, that means most are selling from a position of strength. For investors, it illustrates that Perth’s growth hasn’t just been theoretical, it’s been realised.
Winning confidence from the industry
Market sentiment also remains firmly in Perth’s favour. WA emerged as the most bullish market in a recent survey by Cotality of more than 1,100 industry professionals, spanning across real estate, banking, lending and adjacent property sectors.
Around 91% of respondents anticipating housing values in WA to rise in 2026, with nearly half expecting growth of at least 5%. That isn’t just optimism speaking, with respondents in WA reported seeing demand across entry-level homes through to properties priced around $1.5 million.
“In Western Australia, demand has been more evenly distributed across price points,” Cotality’s Head of Research Tim Lawless said.
“That breadth of demand has helped support more sustained growth rather than concentrated at the lower end of the market.”
Where growth has been strongest across Greater Perth
While the $1 million median tells a city-wide story, growth has been especially strong in several pockets across Greater Perth.
| Area | Region | Median value | 12-month growth |
| Serpentine – Jarrahdale | South east | $894,908 | +24.3% |
| Armadale | South east | $853,006 | +23.7% |
| Belmont – Victoria Park | South east | $956,963 | +22.2% |
| Kwinana | South west | $771,683 | +21.7% |
| Canning | South east | $1,068,508 | +20.9% |
These results highlight how Perth’s growth can be seen in both below and above the $1 million mark. For buyers and investors, that breadth matters. It suggests Perth’s rise hasn’t been driven by a single hot segment, but by sustained demand across the market.
Disclaimer: The information enclosed has been sourced from Cotality and the Australian Bureau of Statistics and is provided for general information only. It should not be taken as constituting professional advice.
PropertyMe is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
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