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WA Property Market Update October 2026

The WA property market continues to present a complex picture as we move through October 2026. While national housing conditions have softened amid higher interest rates and ongoing cost-of-living pressures, Perth and several regional WA markets continue to benefit from strong demand and limited property supply.

For prospective homebuyers, sellers, investors and business owners, understanding these changing conditions is increasingly important. Property prices, borrowing costs, construction expenses and rental returns all influence purchasing decisions, and the right approach will depend on your circumstances, financial position and longer-term goals.

In this month’s WA property market update, we explore the latest residential and commercial retail property trends, including recent Perth sales figures, vacant land availability and opportunities for buyers and investors. We also consider what these developments mean for your finance decisions as we approach the end of 2026.

WA Residential Property Market Update October 2026

Perth Property Prices and Sales Activity

The Perth property market remains relatively resilient despite broader weakness across Australia. According to REIWA’s latest figures for the week ending 25 October 2026, Perth recorded 500 house sales, 137 unit sales and 53 land sales. Available listings included 6,281 houses, 1,922 units and 768 vacant land lots.

Median price data for the 12 months ending August 2026 provides further insight into Perth’s affordability challenges:

Source: REIWA Perth Market Insights. Median prices updated 24 September 2026.

These figures highlight the substantial financial commitment involved in purchasing property, particularly for first homebuyers and households considering an upgrade. Higher property values can increase deposit requirements, while interest rates and living expenses continue to influence borrowing capacity.

Sales activity also varies considerably between suburbs. Baldivis recorded 18 house sales during the reporting week, followed by Scarborough with 11, while Canning Vale and East Perth each recorded 10. These differences reinforce the importance of assessing individual suburbs rather than relying solely on Perth-wide averages.

Vacant Land Supply and Regional WA Conditions

Vacant residential land remains an important feature of Western Australia’s property market. Herron Todd White’s September 2026 Month in Review identified persistent shortages of titled, build-ready land across several metropolitan and regional locations.

In Perth’s south-eastern corridor, suburbs including Harrisdale, Piara Waters and Southern River have experienced significant competition for available lots. Established areas such as Willetton, Leeming and Canning Vale are also seeing strong demand for infill developments, where larger residential blocks are subdivided to create new housing opportunities.

Regional conditions are more varied. Albany continues to experience strong demand for residential and lifestyle blocks, while markets such as Esperance and parts of the Pilbara have recorded more modest land price growth. In remote locations, construction and transport costs can substantially affect the overall feasibility of a development.

For buyers considering vacant land or a house-and-land package, the purchase price is only part of the equation. Building costs, site preparation, construction timeframes and potential loan repayments should all be considered before committing.

WA Retail Property Market Update October 2026

Opportunities and Risks for Commercial Property Investors

Western Australia’s entry-level retail property sector is demonstrating cautious resilience, supported by population growth, limited new commercial supply and demand for essential services.

Herron Todd White’s September 2026 review indicates that entry-level Perth retail properties commonly trade below $1.5 million, with some strata-titled premises available for approximately $300,000 to $500,000. Indicative yields for these assets generally range between 6.0 and 7.0 per cent, reflecting both potential income opportunities and the risks associated with smaller commercial tenants.

Growth corridors such as Ellenbrook, Alkimos and Baldivis may offer opportunities as expanding residential communities create demand for convenience retail, medical services and local businesses. However, higher advertised yields do not automatically translate into stronger investment outcomes.

Investors should carefully examine tenant financial stability, lease conditions, vacancy exposure, strata expenses and ongoing maintenance obligations. Businesses considering purchasing premises should also compare ownership costs with leasing arrangements, particularly where preserving working capital is a priority.

What Interest Rates Mean for Property Finance

Interest rates remain a significant consideration across both residential and commercial property markets. Higher borrowing costs can reduce purchasing capacity, increase repayments and influence whether buyers proceed with planned investments.

For existing borrowers, reviewing loan structures, interest rates and repayment arrangements may help identify opportunities to improve cash flow. Prospective purchasers should also consider how their repayments would be affected by further rate changes, alongside other ownership expenses.

Commercial borrowers face additional considerations, including lender requirements, deposit contributions, loan terms and the potential impact of vacancy periods on rental income.

Rather than making decisions based solely on expectations about future interest rates, buyers and investors should assess whether a proposed purchase remains financially manageable under different market conditions.

Making Informed Property and Finance Decisions

The WA property market in October 2026 presents both opportunities and challenges. Perth’s underlying demand and constrained land supply continue to support parts of the residential market, while commercial retail properties offer alternatives for investors seeking income-producing assets.

However, affordability pressures, financing costs and differing local market conditions mean careful preparation remains essential.

Whether you’re purchasing your first home, refinancing an existing property, investing in commercial premises or reviewing your business finance arrangements, understanding your borrowing options can help you make more confident decisions.

At McKinley Plowman, our Finance team helps individuals, families and business owners explore lending options suited to their needs and financial goals. If you’re considering a property purchase, refinancing or reviewing your existing loans, contact our team on (08) 9301 2200 or get in touch with McKinley Plowman to discuss your options.

Data / Further Reading:

HTW month in Review

REIWA Perth Market Insights

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.