Investing in a Changing Market

At Johnson Property Group, we’re constantly monitoring the factors shaping the Perth property market to help out clients make informed investment decisions.

Our latest market outlook suggests Australia is becoming an increasingly divided property market. While many eastern states are experiencing slower conditions, Western Australia continues to benefit from strong economic fundamentals, population growth and sustained housing demand.

So what does this mean for investors? Understanding where the market is heading can help you identify opportunities before they become obvious to the broader market.

The following outlook reflects Johnson Property Group’s assessment of current market conditions, drawing on industry data and economic forecasts available at the time of publication.

Economic Outlook

Australia’s economy is entering a period of moderation. The unemployment rate currently sits at 4.4%, while the Reserve Bank expects inflation to continue easing. Many economists also believe interest rates have reached their peak for this cycle and expect gradual rate cuts during 2027.

WA remains well placed to weather this transition. Continued investment in defence, critical minerals, LNG and major resource projects is expected to support employment, attract skilled workers and sustain population growth.

Why WA may continue to outperform

Perth continues to lead Australia’s property market. According to KPMG’s latest Residential Property Market Outlook, Perth is forecast to record the strongest house price growth of any capital city, increasing by 12.8% in 2026.

A key driver of Perth’s expected is WA’s strong skilled migration pipeline. Significant investment across the defence and resources sectors is expected to create thousands of skilled jobs over the coming years, attracting workers from interstate and overseas. Projects linked to AUKUS, defence infrastructure, critical minerals, LNG and green hydrogen are expected to underpin long-term economic growth and support continued population growth.

As more people relocate to WA for jobs, demand for housing is expected to remain strong. Combined with ongoing housing supply constraints and a resilient economy, these long-term fundamentals continue to reinforce WA’s position as one of Australia’s most attractive markets for property investors.

Rental Demand Remains Strong

WA’s rental market continues to provide attractive conditions for investors.

According to REIWA, Perth’s median weekly house rent has reached $750, while ABS data shows WA remains Australia’s fastest-growing state by population. Together with ongoing housing supply constraints, these factors are expected to support rental demand over the medium term.

Interest Rate Cuts Could Create Opportunity

While no one can predict exactly when interest rates will begin to fall, many economists expect the next phase of the interest rate cycle to include gradual rate cuts during 2027.

Historically, lower interest rates have improved borrowing capacity and increased demand for property. Markets often begin responding before the first rate cut occurs, meaning opportunities can emerge before the headlines do.

Combined with WA’s strong economic fundamentals, ongoing migration and resilient employment outlook, this could create favourable conditions for long-term property investors.

Timing Matters

Markets don’t move in straight lines, but opportunities often emerge before they’re widely recognised.

In our view, WA’s combination of population growth, employment opportunities, housing demand and economic investment continues to make it one of Australia’s most compelling long-term property markets.

If you’re considering your next investment, now is the time to understand how today’s market conditions could shape tomorrow’s opportunities.