March 2026 Market Update

Australia’s housing market is continuing to fragment as 2026 unfolds, with conditions becoming increasingly uneven across the country. While national dwelling values remain up 9.9% annually, the pace of growth is no longer the story, divergence is. Some city’s markets are clearly losing momentum, while others are still accelerating. According to the latest data, Sydney and Melbourne are now firmly in a softer phase, with both markets recording slight declines over the March quarter and annual growth easing to 4.8% and 3.4% respectively. Increased supply, weaker sentiment and affordability constraints are reducing urgency, giving buyers more negotiating power. At the opposite end of the spectrum, Perth continues to move against the national trend. Dwelling values increased 2.5% in March alone, contributing to 7.3% growth over the quarter and 24.3% annually, making it the strongest performing capital city in the country at present. This level of quarterly growth has added approximately $69,000 to median dwelling values, highlighting just how strongly the Perth market is progressing.

REIWA data for Perth reflects a market which remains firmly in growth mode. Perth’s monthly median house price has reached $885,000, rising 1.72% for the month of March, and just over 5% growth for the quarter. Price growth remained consistently high despite a notable change with available stock across Perth Metro rising to 3,555 during March. This is the first-time supply has moved back above 3,000 since March 2025 however the monthly price for March 2026 was still higher than all months in 2025 except December. The sales-to-stock ratio has eased only slightly to 20% for March, and days on market moved slightly to nine days – homes are still selling quickly. This all suggests demand is still well outpacing supply and doesn’t yet indicate any shift in supply/demand dynamics. Supply, demand and transaction metrics suggest the market is simply adjusting rather than slowing. Perth’s rental market is now also continuing to edge forward, with monthly median house rents at $730 per week. Growth remains steady rather than aggressive, supported by a balanced vacancy rate still holding above 2%, ongoing demand and limited rental supply created by overall housing supply shortages.

Within the City of Melville, the same patterns are playing out in a more condensed form. The median monthly house price lifted to $1,527,500 in March, increasing 1.16% over the month and just over 5% across the quarter. Demand for well-located, established homes remains strong. Sales were recorded at 85 transactions for the month, largely stable on a month-by-month basis, though slightly own over the three-month period. Importantly, the sales-to-stock ratio remains elevated at 48%, and days on market sit at nine, both reinforcing that quality homes continue to transact efficiently. Supply across core suburbs remains extremely limited. Total listings sit at 107 properties, slightly down over both the month and quarter. Despite broader Perth seeing an increase in listings, local stock levels remain constrained, continuing to support pricing in the area.

The suburb breakdown continues to highlight how tight supply really is:
• Alfred Cove – 2
• Applecross – 48
• Ardross – 5
• Attadale – 8
• Bicton – 7
• Booragoon – 3
• Melville – 13
• Mount Pleasant – 18
• Myaree – 3

What the March data is increasingly showing is a shift in how the market is behaving, rather than whether it is growing. Nationally, rising supply, cost-of-living pressures and borrowing constraints are starting to weigh on demand, particularly in higher value markets. But in Perth, the same pressures are being offset by a structural shortage of housing, population growth and relative affordability, keeping upward pressure on prices.

Perth is transitioning out of the urgency-driven phase of the cycle and into a more controlled, but still undersupplied environment driving consistent growth. The recent lift in available listings is simply not nearly enough to materially shift market dynamics. Demand hasn’t disappeared. Supply remains well below what is needed to meet the current population or its growth rate. What we may be starting to see, is a market that is maturing – less reactive, more considered, but still firmly supported by fundamentals that continue to push values higher. The probability forecast, is that price growth continues through each month of 2026.