Perth Property Market Surges as Planning Policy Changes Unlock Development

The Western Australian government's decision to introduce new planning policies has sent shockwaves through the Perth property market, with the changes set to take effect from September 1, 2026.

This development is particularly significant given the current state of the market, with Perth experiencing a period of rapid growth driven by the mining boom and a severe shortage of housing stock, resulting in a sub-1% vacancy rate. The city's median house price has risen to around $680,000, with areas like Joondalup and Wanneroo emerging as hotspots for development.

In terms of specific locations, the new policies are expected to have a major impact on areas like Stirling Highway in Nedlands, where a number of high-density developments are already in the pipeline, and the suburb of Scarborough, where the local council has been pushing for increased investment in infrastructure. Organisations like the Urban Development Institute of Australia (UDIA) and the Property Council of Australia have been vocal in their support for the changes, which they believe will help to address the city's housing affordability crisis.

Market Trends and Statistics

A closer look at the data reveals that the Perth property market is indeed experiencing a period of unprecedented growth, with the latest figures from the Real Estate Institute of Western Australia (REIWA) showing that the median house price has increased by 12% over the past 12 months. Meanwhile, rental yields are sitting at around 4%, with some areas like the suburb of Fremantle achieving yields of up to 5%. As of June 2026, the average rental price for a three-bedroom house in the Perth metropolitan area was $520 per week, according to data from CoreLogic.

So what does this mean for buyers, sellers, and investors in the Perth property market? With the new planning policies set to come into effect in just a few months' time, it's essential for stakeholders to stay informed and adapt to the changing landscape. For those looking to buy or invest, areas like Leederville and Mount Hawthorn are likely to experience significant growth in the coming months, driven by their proximity to the city and existing infrastructure. As the market continues to evolve, it's crucial to keep a close eye on developments and seek advice from reputable sources, such as the City of Perth's planning department or local real estate agents.