Rich get richer as Perth’s property millionaires are set for $100,000 windfall with prices set for big spike

Perth’s newly minted property millionaires are set for a $100,000 windfall, with one of nation’s big four banks forecasting property values will rise nearly 11 per cent this year - double what the bank had previously forecast. But the new forecasts cast a dark shadow over an already gloomy outlook for first home owners who face an uphill battle to achiece the Great Australian dream of home ownership. According to the new ANZ forecasts, house prices in Perth will rise 10.9 per cent in 2026, only behind Darwin’s 13.7pc rise. Comparatively, house prices in Sydney were forecast to rise 2.5pc, Melbourne 2.1pc, Brisbane 9.5pc, Adelaide 6.1pc, Hobart 3.8pc and Canberra 2.2pc. With real-estate experts Domain and Cotality both declaring Perth’s median house price is now at $1 million - higher than Melbourne at $989,000 - thousands of WA homeowners will see their property wealth significantly increase this year. “The Perth property market is likely to defy the RBA’s U-turn on rates by posting strong gains in 2026,” Canstar data insights director Sally Tindall said on Saturday. “In fact, ANZ’s forecast has Perth’s property prices rising by more than any other capital city, with the exception of Darwin, across 2026, in percentage terms. “If ANZ’s new forecasts are realised, the median house price in Perth could rise by over $100,000 in the space of 12 months, despite Tuesday’s rate hike and concern further rises are still to come.” But the news for Perth renters and anyone still chasing the fast fading Great Australian Dream of home ownership is diabolically bad with rents going through roof and interest rates now on the up. New data from the Real Estate Institute of WA shows The median rent for a house rose to $725 per week in January - 6.6 per cent higher than January 2025. And for anyone chasing a rental in Perth, there are only 2087 properties listed for rent with REIWA - 3.2 per cent lower than at the same time last year. The WA Government’s social housing wait list is also bursting at the seams, 23,000 West Ozzies on that list. “The rental market has shown some improvement over the past 18 months, which has been mainly due to an increase in supply, however, we are not out of the woods,” REIWA boss Suzanne Brown said. “Population growth remains high and we have constrained conditions in both the new homes market and the established homes market. These factors are maintaining strong demand for rental property. “ Climbing property prices in Perth spell bad news for first time home buyers, with the average new home loan already at about $633,000. Just this week, the RBA raised the cash rate target by 25 basis points to 3.85 per cent. “This year will be an uphill battle for first home buyers, who’ll not just have to save more for a deposit, but also earn more to qualify for a larger loan at higher rates,” Ms Tindall said. “With the balance between supply and demand so far out of kilter, both the state and federal governments need to look harder for solutions. “More initiatives to build new homes and free up existing ones, alongside policies to keep investors from elbowing first home buyers out of the market, should be considered.” “In the meantime, first home buyers will have to be shrewd. Buying something small, ugly, or further away is likely to beat overextending yourself in a commitment that can sometimes last for decades.”