While the rest of Australia falls, Perth holds its ground

New data shows that while property values are dropping across most of Australia, Perth is one of only three capital cities still moving in the right direction. 

‍Cotality’s July Home Value Index recorded price falls in Sydney, Melbourne, Brisbane, Adelaide and Canberra between June and July. Perth, on the other hand, edged up 0.1%, alongside Hobart (also up 0.1%) and Darwin (up 0.8%). 

A tough month for the rest of the country 

Nationally, dwelling values fell 0.7% in July, the steepest single-month decline since December 2022. The downturn, once largely confined to Sydney and Melbourne, has now spread to previously resilient mid-sized capitals such as Brisbane and Adelaide. 

There are a few factors behind the broader slowdown:  Uncertainty around interest rates

• Softer consumer confidence, which typically weighs on turnover
• A pullback in investor activity following changes to negative gearing in the 2026 federal budget

Perth, however, tells a different story, driven by strong population growth, a persistent supply shortage and comparative affordability (more on these below).

What does this mean for buyers?

If you’ve been reading national headlines about a property downturn and waiting for Perth prices to soften, it’s important to remember that those headlines are largely describing what’s happening elsewhere in the country, not here. 

Perth’s fundamentals, particularly the ongoing supply shortage and continued population growth, suggest upward pressure on prices is likely to persist. Buyers holding out for a broad-based price correction based on combined national conditions risk missing their window. 

Waiting could also have a cost of its own. Perth's rental market remains one of the tightest in the country, with Cotality figures showing house rents up 8.1% annually, so buyers who delay a purchase in the hope of a discount may find they're paying more in rent in the meantime. 

What does this mean for vendors?

For those looking to sell, Perth’s resilience is good news. While clearance rates and buyer confidence soften in other markets, properties in Perth are still bringing in strong results. 

Investor demand is another point in vendors' favour. Cotality has Perth's gross rental yield at 3.8%, among the highest of any capital city, which keeps investor buyers active in the market even as activity softens elsewhere following changes to negative gearing in the May federal budget. 

That said, resilience in the data doesn’t mean every property sells itself. Buyers still respond best to properties that are marketed well and presented properly, which is where working with an experienced local agent makes a real difference. 

Why is Perth bucking the trend?

Several forces are keeping Perth’s market steadier than the rest of the country: 

Population growth is the strongest in the country

Western Australia's population grew 2.2% in the year to December 2025, the Australian Bureau of Statistics (ABS) found, well above the national rate of 1.5%. WA was also the only mainland state to gain population from interstate migration (a net inflow of 10,419 people), while New South Wales, Victoria and South Australia all lost residents to other states.

Supply hasn’t kept up

ABS’s building approvals data for June 2026 revealed total dwelling approvals in WA rose 10.7% month-on-month, but private sector house approvals fell 5.4%, highlighting how uneven the pipeline remains. Even with approvals ticking up in some categories, new supply is struggling to keep pace with WA’s population growth.

Perth is comparatively affordable 

Despite strong annual growth of 20.5%, Perth’s median dwelling value of $1,029,797 remains below Brisbane’s ($1,104,094) – a similarly-sized capital that has grown at a comparable pace – and well below Sydney’s ($1,244,617), so there’s less of the affordability strain that’s pushing buyers out of other markets.

WA’s economy is strong

A solid state economy continues to support both housing demand and household confidence. 

Taken together, these factors point to a market that’s likely to keep outperforming the rest of the country in the months ahead. For both buyers and vendors, it’s these conditions, local to Perth, that are key to making the right move at the right time – not the national headlines.

Thinking about your next move? Whether you’re buying into Perth’s market or considering selling while conditions remain strong, the ModernRE team can talk you through what’s happening in your suburb right now. Get in touch today, email us at admin@modernre.com.au or call 0433 464 339. ‍