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WA Property Market Update May 2026

As we see off May 2026, WA remains one of Australia’s more resilient property markets. Perth in particular continues to operate differently from many eastern states markets, with severe housing undersupply, strong demand, lifestyle appeal and the ongoing strength of the mining sector supporting further growth expectations. At the same time, the national rate environment and the recent announcement of Negative Gearing changes means the lending market remains unsettled, especially with higher borrowing costs placing added pressure on households and businesses.

For those looking to purchase, sell, refinance or invest, this means preparation matters. The right property decision should consider not only the purchase price, but also serviceability, loan structure, future cash flow and your broader financial position.

WA Residential Property Market Update May 2026

The residential market in WA remains highly competitive, although buyers are becoming more selective. Perth could see further growth in 2026, supported by strong demand and limited housing supply. This is consistent with the broader market picture, where a shortage of available homes continues to cushion prices even as interest rates create affordability pressure.

REIWA’s Perth market insights for the week ending 24 May 2026 recorded 687 property sales, made up of 515 houses, 130 units and 42 land sales. Listings remained relatively constrained, with 3,559 houses, 1,070 units and 459 land listings available for sale. Median price data for the 12 months ending April 2026 showed Perth’s median house price at $910,000, the median unit price at $650,000 and the median land price at $409,000.

Rental conditions also remain tight. REIWA’s data showed median house rent at $730 per week and median unit rent at $700 per week. For investors, these rental figures may support cash flow, but higher interest rates and lending costs still need to be carefully assessed particularly as banks recalculate serviceability now that negative gearing will be heavily restricted in the not-too-distant future. High rental costs may increase the appeal of ownership, particularly where long-term borrowing capacity allows.

For buyers, the message is clear. Flexibility can create opportunity, but finance needs to be arranged carefully before making a move. A pre-approval, realistic deposit strategy, and clear understanding of repayment capacity can help you act with confidence when the right property becomes available.

WA Office Property Market Update May 2026

WA’s office property market is also showing signs of change. Perth’s office sector is positioned for recovery in 2026, supported by strong economic fundamentals, population growth, the mining sector and a limited supply pipeline.

The Property Council of Australia’s January 2026 Office Market Report, cited by Herron Todd White, recorded Perth CBD vacancy at 16.9 per cent, virtually unchanged from 17.0 per cent in July 2025. West Perth vacancy increased slightly from 13.0 per cent to 13.4 per cent over the same period. While these figures show vacancy remains elevated, the stability in Perth’s CBD suggests the market may be finding a more balanced footing.

A key shift is that tenants are still interested in better-quality office space, but they are weighing that against relocation costs, fit-out expenses and overall business confidence. For some businesses, renewing an existing lease and renegotiating commercial terms may be more attractive than moving.

There is also stronger activity in smaller office tenancies below 500 square metres, particularly in the 250 to 350 square metre range. Fringe CBD areas such as Leederville and Subiaco are seeing constrained availability for this type of stock, which is beginning to place upward pressure on face rents while incentives gradually reduce.

For business owners considering an office purchase, refinancing an existing commercial facility, or reviewing leased premises, this is a market that requires careful decision making. The right call will depend on your growth plans, cash flow, debt position and whether owning or leasing better supports your business over the long term.

Looking Ahead

The WA property market remains strong through May 2026 and beyond, but it is not one-dimensional. Residential property continues to be supported by limited supply, strong population and employment fundamentals, and ongoing buyer demand. However, higher interest rates and legislative changes mean affordability and borrowing capacity are still central to every decision.

Whether you are buying your first home, upgrading, investing, refinancing or making a commercial property decision, the best outcomes often come from planning early. Understanding the property market is only one part of the process, how your finance fits around your goals is just as important. If you are considering a property purchase, sale, refinance or commercial finance decision, McKinley Plowman’s Finance team can help you understand your options and structure your lending with confidence. Contact us on (08) 9301 2200 or visit our contact page to arrange a conversation with our team.

References / 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.