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WA Property Market Update January 2026

As Western Australia enters 2026, the property market finds itself in a position few could have predicted a decade ago. Strong population growth, persistent supply constraints and evolving interest rate expectations are reshaping how buyers, investors and businesses approach property decisions.

With affordability under pressure nationally, Western Australia continues to attract attention for its relative value, economic stability and long-term growth prospects. Yet opportunities in 2026 will increasingly depend on understanding where momentum is building, where risks are emerging, and how financing, supply and demand dynamics are likely to interact. So, what do today’s conditions mean for the year ahead?

WA Residential Property Market Update January 2026

Heading into 2026, Western Australia’s residential market remains fundamentally shaped by one dominant force: demand continues to outpace supply, with population growth the most powerful driver. Western Australia continues to record the highest population growth rate in the country, underpinned largely by overseas migration and interstate relocations driven by affordability and lifestyle. This sustained inflow is keeping pressure on both owner-occupier and rental markets.

At the same time, housing supply remains constrained. Construction costs remain elevated, approvals are well below long-term averages, and new housing completions are not keeping pace with population growth. As a result, listing volumes remain tight, particularly in affordable and middle-price segments. Looking forward, this imbalance suggests that price support is likely to persist through 2026, even if interest rates remain on hold for longer than originally expected.

Perth’s median house price now sits well above pre-pandemic levels, yet relative affordability compared to Sydney and Melbourne remains a key attraction for buyers and investors. For many households, Perth still represents one of the last major capital cities where family homes are attainable without extreme debt burdens.

Rental markets are expected to remain tight in 2026. Vacancy rates remain low, unit rents continue to rise faster than house rents, and apartment living is increasingly seen as a necessity rather than a lifestyle choice for many tenants. This environment continues to support investor interest, particularly in well-located, transport-connected suburbs.

Inner-ring suburbs are likely to remain highly competitive, driven by equity-rich upgraders, downsizers seeking lifestyle proximity, and investors seeking stronger tenant demand. At the same time, Perth’s outer growth corridors and mortgage-belt suburbs continue to attract buyers priced out of established areas.

In regional WA, 2026 is expected to be a year of divergence rather than uniform growth. Markets linked to strong economic activity, lifestyle appeal and infrastructure investment are likely to remain resilient, while investor-heavy pockets may see more selective demand as buyers become increasingly yield-conscious.

Overall, the residential outlook for Western Australia in 2026 remains supported by strong fundamentals. While affordability challenges are real, the absence of meaningful new supply means any broad-based price correction appears unlikely without a major economic or policy shift.

WA Office Property Market Update January 2026

Western Australia’s office market enters 2026 in a phase of stabilisation rather than decline. Hybrid work patterns are now embedded, and businesses now prioritise quality, flexibility, ESG compliance and amenity over sheer floor space. This has significantly changed demand across the CBD and suburban markets.

For Perth, limited new supply remains a defining feature. High construction and financing costs continue to discourage new developments, which in turn places long-term support under well-located existing stock. As a result, competition is increasingly focused on A-grade assets that meet modern sustainability and workplace expectations.

From an investment perspective, 2026 is shaping as a year of selective confidence. Capital is returning cautiously, focusing on assets with strong tenant appeal, ESG credentials and long-term repositioning potential. Secondary and obsolete stock will continue to face challenges unless meaningful refurbishment or conversion options are viable.

Nationally, new CBD office supply is forecast to remain historically low over coming years. For Perth, the implication is clear: quality assets are likely to be increasingly scarce, while well-located offices that meet modern occupier requirements are expected to outperform the broader market. 2026 looks like it will be defined by differentiation — between assets that evolve and those that fall behind.

The Outlook for 2026

As Western Australia enters 2026, the property market remains driven by powerful structural forces rather than short-term sentiment. In residential property, population growth and supply shortages continue to underpin demand. While affordability pressures remain front of mind, the absence of meaningful new housing supply suggests competition will remain a defining feature of the year ahead. In the office sector, stabilisation is replacing volatility. Quality, ESG compliance and tenant experience are now the primary differentiators between success and underperformance.

For Western Australians, the message is clear: property decisions in 2026 will increasingly reward strategy, selectivity and local insight. Whether buying, investing, refinancing or leasing, understanding how today’s conditions shape tomorrow’s outcomes has never been more important.

If you are planning a property purchase, investment, refinance or business property move in January 2026 and beyond, the McKinley Plowman Finance team can help you navigate the WA property market with confidence. Speak with our local finance specialists on (08) 9301 2200 or visit www.mckinleyplowman.com.au/contact-us to discuss your property and lending strategy for the year ahead.

written by:

Paul Moran

Paul has over 35 years of experience in finding financial solutions for homebuyers, investors and business owners.
A licensed broker and member of the Mortgage & Finance Association of Australia (MFAA), Paul’s extensive experience includes 20 years with a major bank, seven of which were as commercial banking manager.
Paul delivers a holistic financial solutions to achieve the best possible outcome for a client’s personal or commercial lending needs. Paul also provides a comprehensive financial consultancy to business owners on commercial, equipment and invoice finance.