From laggard to leader: A thriving capital city that will see its population rise

It’s the city’s property market at its strongest in the past five years, and experts say the latest population forecasts suggest Perth’s rapid growth will continue.

Property prices in Perth fell by 19.5% in the 12 months to February, according to PropTrack data, and will almost double (98.3%) from 2021.

Despite the extreme price growth, the latest realestate.com.au Property Market Outlook predicts that Perth and Brisbane will deliver double-digit price growth again in 2026, with projections ranging from 7-10%.

Realestate.com.au’s chief economics officer, Angus Moore, said population growth was helping to propel the property market after years of cash outflows in other states and territories.

“WA saw a massive exodus of people to other states during the latter part of 2010, the post-mining boom, which contributed to the soft housing market conditions at the time,” Mr Moore said. “That has changed, with strong inflows since 2020.

“Perth has recorded strong population growth over the past few years, supported by in-migration and in-migration.”

At the same time, the value of real estate remains strong. According to the latest PropTrack listing, Perth had 30% fewer homes for sale in January 2026 than the same period last year, with Darwin (-39%) the only capital city to see a significant decline.

Now, new forecasts predict WA’s population growth will be the fastest for at least the next decade. Another 584,000 people are expected to call WA home by 2036, according to the Center for Population.

Buyer’s agent Peter Gavalas of Resolve Property Solutions said he believed the market would likely be undersupplied for a while, although he said understanding the structure of this population growth was important in identifying areas with strong growth.

“While the headlines focus on population growth, it is actually the composition of new arrivals that is most important to property investors and homebuyers trying to identify which areas in the city will deliver strong returns,” said Mr Gavalas.

“The data shows growth is concentrated in Perth and skewed towards younger, migrant families. This is fundamentally changing what types of properties are most in demand and where demand is strongest.”

The population of WA is predicted to increase by more than half a million people by 2036 according to the Center for Population. Photo: realestate.com.au

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Mr. Gavalas said there are many people looking to buy entry-level and mid-level houses, in addition to units and townhouses.

“These buyers – often young migrants or first-time home buyers – are not looking for decent homes in built-up areas,” he said. “We’re seeing continued interest in properties under $850,000.”

Suburbs leading the way in immigrant demand

Mr Gavalas – who was among a panel of 18 industry experts included in the realestate.com.au Hot 100 for 2026 – said he expected suburbs in the north-west to be chosen by young people in Perth.

“There’s good value in the Clarkson and Butler area, and the surrounding areas,” he said. “They are very close to the coast, close to the highway, close to the infrastructure, I think they stand out right now as a very good value.

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“Banksia Grove is very affordable….there’s a really good infrastructure there, a lot of entertainment is close to the beach, the freeway, so I think that appeals to a lot of people.”

Mr Gavalas said coastal living was a popular desire among many buyers, and to the south of the city, Rockingham and Baldivis were also strong players in the search for buyers.

One of his Hot 100 picks, Nollamara, located 8km from both Perth’s CBD and the coast, offers value alongside more expensive neighbours, such as Yokine and Dianella.

“Nollamara offers a wide range of accommodation types in houses and villas, with great options for first-time buyers, young people and families,” said Mr Gavalas.

Families arriving with children are driving demand for larger homes in suburbs of Perth, according to buyer’s agent Peter Gavalas. Photo: realestate.com.au

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“Many of the suburbs are designed for middle class development and will provide the demand for large areas from developers and investors in the future.”

See the full list of Realestate.com.au’s Hot 100 properties for 2026 here.

Can the city maintain its growth rate?

WA head of Belle Property, Travis Coleman, said it was inevitable that the growth rates seen in Perth would slow, but said 2026 had already started with record sales and “very high” numbers of home openings.

“In a very competitive environment, people try to make their offer as attractive as possible, and that can include things like reducing certain conditions, excluding financial clauses, making money without conditions to make their offer more attractive to the seller,” said Mr Coleman.

Homes in Rockingham, like 23 Townsend Road, are in high demand because of their affordability. Photo: realestate.com.au

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“And the increase in deposits – we’ve seen that recently in terms of, ‘Okay, would a little bit more in deposits make a difference?’ Now, at the end of the day, it’s not, but it shows the intent I think he’s got.”

Mr Moore said the more affordable parts of Perth had been performing particularly well over the past year or so, in line with a “challenging level of housing affordability” after interest rate rises in 2022 and 2023, and rising house prices.

“Interest rates have already been raised this year, and further increases are expected, so the demand for affordable properties will continue,” he said.

“House prices will increase by 18% in 2025, followed by 2024 and 17% in 2023.

“Perth has seen strong consistent growth – with little interruption – from 2020, with a slight slowdown when the RBA starts to raise rates in 2022.

“That means Perth house prices have more than doubled between the start of 2020 and today.”