Perth Property Market Forecast 2027: What the Banks Actually Expect
- Perth rose 0.1 per cent in July, one of only three capitals still rising. Perth enters the forecast period as the country’s fastest-growing capital, up 25.8 per cent over the past year on our tracking.
- Domain’s FY2027 forecast has Perth house prices rising 5 to 9 per cent across the year to June 2027, the strongest forecast of any capital. Commonwealth Bank’s economists see growth moderating to around 4 per cent annually by the end of 2027, while Westpac’s forecast has the median reaching about $1.09 million.
- The national backdrop: the RBA held at 4.35 per cent in a hawkish hold with no cuts forecast this year, auction clearances have sat below 50 per cent since late May, and mortgage applications are down at both of the country’s two biggest lenders since the May budget.
- Forecasts are the banks’ and portals’ published views, not our predictions, and they change. What they agree on: the capitals are diverging, and Perth’s path has its own drivers.
Where the Perth market is right now
Perth rose 0.1 per cent in July, one of only three capitals still rising, against a national July fall of 0.7 per cent, the sharpest month since December 2022. Perth enters the forecast period as the country’s fastest-growing capital, up 25.8 per cent over the past year on our tracking, the fastest of any capital. Nationally, upper-quartile values fell 3.2 per cent over the three months to July while auction clearance rates have held below 50 per cent since late May, with capital-city listings running 5.7 per cent above the five-year average.
Perth is the strongest of the handful of capitals still climbing while the east coast corrects, and the forecast question is not direction but duration. Every major published view has it rising through 2027, on the back of mining-sector incomes, population growth that outruns building capacity, and a starting point that, even after a 25.8 per cent year, remains the most affordable big-capital market relative to local incomes.
The August 2026 backdrop applies everywhere: the RBA’s hawkish hold means rates are not doing the work for anyone, the May budget’s investor tax changes have thinned one cohort of bidders, and both of the country’s biggest lenders have reported double-digit falls in mortgage applications since. The full five-signal picture is in our buyer’s market analysis; this page is about how those forces land in Perth specifically.
The 2027 forecasts, bank by bank
For Perth, Domain’s FY2027 forecast has house prices rising 5 to 9 per cent across the year to June 2027, the strongest forecast of any capital. Commonwealth Bank’s economists see growth moderating to around 4 per cent annually by the end of 2027, while Westpac’s forecast has the median reaching about $1.09 million. These are published institutional views as at August 2026, they differ because their models weight rates, migration and supply differently, and they are revised through the year, which is why the direction and the reasoning matter more than any single number.
Domain’s financial-year 2027 view has Perth house prices rising 5 to 9 per cent across the year to June 2027, the strongest forecast of any capital. Commonwealth Bank’s economists see growth moderating to around 4 per cent annually by the end of 2027, while Westpac’s forecast has the median reaching about $1.09 million. Westpac’s broader forecast across the capitals has medians rising by up to $134,000 by the end of 2027, though the distribution of that rise is anything but even.
Read the spread honestly: forecasters disagree because the inputs genuinely are uncertain, and last year’s consensus missed in several cities. Treat every number on this page as a published institutional view with a date on it, not a promise, and treat the agreement between them, that the capitals are diverging sharply, as the more reliable signal. Our national forecast hub compares the full set side by side.
What actually decides Perth’s path
The drivers are structural rather than speculative: resource-sector employment pays incomes that service large loans comfortably, interstate and overseas migration keeps arriving, and Perth builds houses more slowly than it forms households. The risk side is equally structural: the market’s fortunes track commodity cycles, and a 25.8 per cent year mathematically cannot repeat forever.
The drivers are structural rather than speculative: resource-sector employment pays incomes that service large loans comfortably, interstate and overseas migration keeps arriving, and Perth builds houses more slowly than it forms households. The risk side is equally structural: the market’s fortunes track commodity cycles, and a 25.8 per cent year mathematically cannot repeat forever. The rate environment is the shared unknown: no cuts are forecast this year and at least one investment bank has pencilled in a hike, which is why any forecast that assumes easing in 2027 carries that assumption as its biggest risk.
What it means if you are buying or selling
For local buyers the uncomfortable truth is that waiting has been expensive for three straight years, and the forecasts say a fourth. For east-coast investors, Perth remains the rentvesting destination our fastest-growing cities piece profiles, with the caveat that entry yields have compressed as prices ran. Mining and FIFO incomes have their own assessment quirks that reward lender selection, and the sequencing basics hold: pre-approval first, then shortlist.
For local buyers the uncomfortable truth is that waiting has been expensive for three straight years, and the forecasts say a fourth. For east-coast investors, Perth remains the rentvesting destination our fastest-growing cities piece profiles, with the caveat that entry yields have compressed as prices ran. Mining and FIFO incomes have their own assessment quirks that reward lender selection, and the sequencing basics hold: pre-approval first, then shortlist. For Australians buying from overseas, our guide to buying property in Australia from overseas walks the remote version of the purchase step by step.
Perth is forecast to lead the country. Owners are sitting on the deposit.
The strongest forecast in this series means Perth owners build equity fastest, and equity is a deposit that saves itself. Releasing part of that growth can fund the upgrade or the next purchase, and a refinance first makes sure the loan carrying it is the sharpest available. It is also the security a bridging loan lends against if the upgrade turns up before the current home is sold. Start with refinancing in plain English and the current cashback offers. A former banker structures it end to end, free.
Growth like Perth’s only becomes usable when the loan is re-marked against it. A refinance triggers a fresh valuation at today’s number, which is how paper growth turns into lending room, and select lenders read strong markets more generously than the lender who valued the place years ago ever will. Before releasing anything, make sure the loan carrying the debt is the sharpest available, or simply make your current lender compete, because equity drawn at a lazy rate compounds the wrong way. The calculator shows both effects side by side.
Put my equity to workFrequently asked questions
Will Perth property prices fall in 2027?
The published forecasts have Perth house prices rising 5 to 9 per cent across the year to June 2027, the strongest forecast of any capital, and forecasts are revised through the year as rates, migration and supply data land. Direction and drivers are more dependable than point estimates, and the divergence between capitals is the strongest common signal.
What do the banks forecast for Perth in 2027?
Domain’s FY27 view: house prices rising 5 to 9 per cent across the year to June 2027, the strongest forecast of any capital. Commonwealth Bank’s economists see growth moderating to around 4 per cent annually by the end of 2027, while Westpac’s forecast has the median reaching about $1.09 million. All are published August 2026 views, differ on modelling assumptions, and change with the data.
Can Perth keep rising while Sydney and Melbourne fall?
Yes, and it is doing exactly that: capital cities regularly run different cycles because their drivers differ, and Perth’s resource incomes, migration and supply shortfall are largely independent of the rate sensitivity dragging the southern capitals. Divergence this wide is unusual but not unprecedented.
Is Perth still affordable after rising 25.8 per cent in a year?
Relative to its own history, much less so; relative to Sydney and Melbourne incomes-to-prices, still meaningfully cheaper, which is precisely why forecasters see more room. The affordability advantage narrows with every strong quarter, and it is the main reason growth forecasts moderate toward 2027.
Is now a good time to buy in Perth?
Timing the market is a forecast bet; readiness is not. Current conditions, sub-50 per cent clearances, above-average listings and thinner competition, measurably favour prepared buyers, and preparation, finance arranged, budget stress-tested, conditions in the contract, is what converts a soft market into a good purchase whatever 2027 brings.
Should I wait for 2027 before acting?
Waiting is a position too: it bets prices move your way, that rates cooperate, and that the property you want exists when you re-enter. The honest alternative is to get assessed now, watch with finance ready, and let the right property decide the timing rather than the calendar.
How do you access equity after Perth’s price growth?
Through a refinance, which triggers a fresh valuation at the current market number and prices the loan against it. That is the step that turns paper growth into lending room. From there, released equity can fund the next deposit or the upgrade without fresh saving.
Should you refinance before releasing equity?
The two are usually reviewed together, because equity drawn on a stale rate costs more than it should for as long as it exists. Making sure the loan carrying the debt is the sharpest available comes first, and the release is then structured on a loan already working properly.
Is now a good time to refinance in Perth?
Strong valuations work in favour of Perth owners: a rising market lifts the valuation side of the ratio, which widens lender choice and improves pricing. The test is the same as anywhere, whether the saving clears the switching costs, and the savings calculator shows that in a few fields.
The honest summary
Every forecast on this page carries a date and an assumption set, and all of them will be revised. What they jointly say about Perth is more useful than any single number: the capitals have split, the drivers are knowable, and conditions right now favour buyers who arrive prepared. We arrange the finance side of prepared, across more than 40 lenders, and the conversation costs nothing.
Buying in Perth this cycle? Arrive with the finance already solved.
A former banker maps your borrowing power across more than 40 lenders, stress-tests it against the forecasts, and gets pre-approval moving so the market’s timing becomes yours. Free, and honest either way.
Book a chat with a former bankerAbout the author. Ahmed Lotfi is co-founder of Everstone Finance and a former banker who now works as a mortgage and finance broker in South Yarra, Melbourne, arranging home, investment and commercial lending for clients across Australia and abroad. Everstone Finance operates under the Best Interests Duty as Credit Representative 574314 of LMG Broker Services Pty Ltd, Australian Credit Licence 517921.