A number has started to cut through the noise around Australian home ownership: $14,000 a year. For a household already carrying a mortgage, $14,000 is not an abstract figure. It is more than $1,160 a month. It is a family holiday, school expenses, a substantial chunk of annual insurance, or the difference between feeling financially comfortable and constantly watching the bank account. But there is an important distinction to make at the outset.

1. Australia has not introduced a new $14,000 annual tax on owner-occupied homes. The $14,000 figure refers to estimated non-mortgage annual ownership costs — including expenses such as council rates, insurance, water and wastewater charges and ongoing maintenance — rather than a single government tax.
2. A 2026 analysis of Australian home ownership costs estimates that non-mortgage costs for houses can range from about $14,000 to $20,800 a year depending on the state and circumstances. Australians are discovering that buying a home does not end the housing affordability problem.

It changes the nature of the problem.

• The deposit is only the entry ticket.
• The mortgage is only the largest recurring payment.

And the purchase price is only one part of the cost of keeping the property.

1. For Perth, this discussion has become particularly relevant in 2026. The city has moved through one of the country’s strongest property growth periods. REIWA’s data shows:
2. Perth’s median house sale price reached $950,000 over the 12 months to July 2026, while the median unit price reached $682,000.
3. Median weekly rents were around $750 for houses and $700 for units.
4. REIWA had originally forecast more than 10 per cent house-price growth for Perth during 2026 after a 13.3 per cent rise in 2025, when the median house price moved from $750,000 to $850,000.

But by mid-2026 the market was beginning to change. Listings were rising. Buyer urgency was easing. The number of homes available for sale had increased sharply. Households were also becoming much more sensitive to the difference between what a property costs to buy and what it costs to own. That is where the $14,000 story becomes particularly important. For Perth buyers, the question is no longer: “Can I afford this house?” The better question is: “Can I comfortably afford this house every year after I buy it?” This analysis explores that question.

Whether you’re buying or selling, Trusted Real Estate Agents in Perth can help you achieve the best results.

The $14,000 headline needs to be understood properly.

The phrase “$14,000 annual home tax” makes for a powerful headline, but it is technically misleading if interpreted as a new nationwide tax. The estimated figure comes from adding recurring ownership expenses rather than a single government charge. A typical homeowner may face:

Annual ownership cost	What it covers
Council rates	Local government services
Water and wastewater	Water Corporation charges and related services
Home insurance	Building and contents cover
Maintenance	Repairs, servicing and upkeep
Pest control	Termites, inspections and treatment
Gardening	Where applicable
Appliance replacement	Hot-water systems, air conditioning, appliances
Building upkeep	Roof, gutters, paint, plumbing and electrical work
Strata levies	Apartments, villas and some townhouses
Emergency-related charges	State/local charges where applicable

The important point is that not every homeowner pays every expense at the same level.

• A new apartment in Perth will have a very different cost structure from a 25-year-old four-bedroom house in the hills.
• A low-maintenance townhouse in Baldivis will have a different financial profile from a large coastal property in Cottesloe.
• A $700,000 home in Armadale will not have the same insurance, maintenance or financing exposure as a $3.5 million home in Cottesloe.

So treat the $14,000 number as a warning signal, not a universal bill. That’s exactly why Perth households need to look beyond headline property prices.

For several years, the Perth housing conversation was dominated by one issue: There were not enough homes. That remains important. But in 2026, another issue has become increasingly visible: The cost of carrying those homes.  Perth’s housing market entered 2026 after extraordinary price growth.

1. According to REIWA, Perth’s median house price finished 2025 at $850,000, up 13.3 per cent.
2. Units performed even more strongly, with the median unit price rising 20 per cent to $600,000.
3. By the end of June 2026, REIWA reported the median Perth house price at $938,000, after preliminary quarterly growth of 4.2 per cent in the June quarter.
4. Units reached $675,000 after 4.7 per cent quarterly growth.
5. By July, REIWA’s updated annual data showed the Perth house median at approximately $950,000.

That means the affordability calculation for a Perth buyer has changed dramatically. Consider the difference.

• A buyer purchasing at $650,000 faces one financial reality.
• A buyer purchasing at $950,000 faces another.

Even if two households have identical lifestyles, the second household has a much greater exposure to:

• mortgage repayments;
• insurance;
• maintenance;
• rates;
• transaction costs;
• repairs;
• renovation requirements;
• interest-rate movements;
• and the opportunity cost of tying up capital.

That is why the “$14,000” conversation isn’t really about tax. It is about the hidden annual price of home ownership.

REIWA’s latest data shows an interesting transition. For the week ending 23 August 2026, Perth recorded:

• 442 house sales
• 152 unit sales
• 4,939 houses listed for sale
• 1,616 units listed for sale
• 1,400 houses available for rent
• 683 units available for rent

Total properties listed for sale stood at 7,204, compared with 3,145 at the same point a year earlier. That is a major shift in market conditions. It does not automatically mean Perth is heading for a crash. In fact, REIWA’s own data still shows substantial underlying price growth and continued demand. But it does mean buyers have more choice than they did during the most aggressive phase of the Perth boom. And that changes the negotiating environment. When buyers are competing over five homes, they may accept:

• higher prices;
• fewer conditions;
• rushed decisions;
• older properties;
• higher maintenance requirements.

When buyers can choose from considerably more properties, the calculation changes. Suddenly the buyer can ask: How much will this house actually cost me to own? That question can materially affect what a property is worth to an individual buyer.

One of the most common mistakes in property purchasing is calculating affordability using only the mortgage repayment. Imagine a buyer purchases a Perth house for $900,000. They calculate: “My mortgage repayment is approximately X per month.” They then compare that figure with their household income. The calculation looks manageable. But the household also needs to account for:

• council rates;
• water charges;
• insurance;
• maintenance;
• repairs;
• utilities;
• pest inspections;
• air-conditioning servicing;
• gardens;
• unexpected plumbing;
• electrical repairs;
• appliance replacement.

Suddenly, the property’s annual financial footprint is substantially larger. This is especially important in Perth because property values have risen faster than many household incomes. The problem isn’t necessarily that Perth homes are unaffordable on their own. The margin for financial error has become smaller.

Perth’s $950,000 median changes the conversation

A $950,000 median house price does not mean every Perth house costs $950,000. It simply means half of the transactions are above that level and half below it. But the figure is psychologically significant. Perth is no longer the ultra-cheap capital city that many interstate buyers remember from five or ten years ago. The city’s housing market has matured. Selected Perth suburb indicators — 2026:

Suburb	Median house price	Annual sales-price growth	Median weekly rent
Armadale	$699,000	21.6%	$630
Baldivis	$840,000	16.7%	$680
Rockingham	$853,000	16.9%	$650
Joondalup	~$1.00m	—	$730
Victoria Park	$1.18m	18.9%	$787
Perth	$1.42m	17.6%	$750
Cottesloe	$3.50m	9.5%	$1,437

1. The Armadale example: affordability still exists, but ownership costs matter

REIWA’s latest data puts the median house price at approximately $699,000, with annual sales-price growth of 21.6 per cent and median weekly rent around $630. That is an extraordinary annual growth rate. But the affordability conversation needs another layer. A buyer purchasing around $699,000 may have a much smaller mortgage than someone buying at $1 million. That can create a stronger buffer. However, buyers should not assume a lower purchase price means cheaper ownership. A 1980s house needing:

• roof maintenance;
• electrical upgrades;
• air-conditioning replacement;
• fencing;
• landscaping;
• bathroom renovation;

Could easily cost more to maintain than a newer $750,000 home. This is why the price per square metre isn’t enough. The better metric is: Total annual cost of ownership relative to household income.

2. Baldivis: the family-market pressure point

REIWA’s latest figures show a median house price of approximately $840,000, with annual sales-price growth of 16.7 per cent and a median house rent of about $680 per week. Baldivis is particularly relevant because it represents the kind of family-oriented market where buyers often prioritise:

• larger homes;
• multiple bedrooms;
• gardens;
• garages;
• schools;
• newer construction;
• access to employment corridors.

But larger homes also mean larger ownership exposure. A four-bedroom property typically has:

• more roof area;
• more floor area;
• more air-conditioning;
• more plumbing;
• more electrical infrastructure;
• more garden;
• more appliances;

and potentially higher insurance replacement costs. The difference between a small unit and a large family home isn’t simply the mortgage.

3. Rockingham and the coastal affordability equation

Rockingham’s median house price has reached approximately $853,000, according to REIWA, with annual sales-price growth of 16.9 per cent and median weekly rent around $650. Location can influence recurring ownership costs. Coastal properties can have different insurance considerations because of:

• exposure to weather;
• corrosion;
• wind;
• salt air;
• older building stock;
• flood considerations in some locations.

This does not mean every coastal home is expensive to insure. But it does mean buyers should not assume two homes with identical purchase prices will have identical annual ownership costs. The correct approach is to obtain insurance quotes before making the final financial commitment.

4. Victoria Park: the higher-value inner-ring calculation

REIWA’s latest suburb data puts its median house price at around $1.18 million, with annual sales-price growth of 18.9 per cent and median weekly rent around $787. Here, the affordability issue becomes much more obvious. The purchase price is already above Perth’s metropolitan median. The property may also be:

• older;
• on a larger or more valuable land parcel;
• closer to the CBD;
• architecturally diverse;
• more expensive to renovate.

The buyer may therefore face higher acquisition costs and higher maintenance expectations. This is where the “$14,000” headline becomes useful. It reminds buyers that the mortgage is not the complete financial picture.

5. Cottesloe shows the end of the equation.

Cottesloe’s median house price is now approximately $3.5 million, according to REIWA,

• Median weekly house rent is around $1,437. At this level, annual ownership expenses can be dramatically higher than a national “average”. Insurance alone can be materially different. Maintenance on a large premium home can also be substantial.
• A swimming pool, extensive gardens, multiple bathrooms, high-end finishes, older roofing systems and specialised equipment can create recurring costs that do not appear in a mortgage calculator.

For affluent buyers, therefore, the question is not: “Can I afford the mortgage?” It is: “What is the annual carrying cost of this asset?”

The council rates question: is this really a new tax?

In Western Australia, residential council rates aren’t calculated as a simple percentage of a property’s sale price. Local governments generally use the property’s Gross Rental Value (GRV) and the relevant council’s rate in the dollar. For example, the City of Perth’s 2026/27 residential differential rate is 4.545 cents in the dollar, with a residential minimum payment of $850. Importantly, the City of Perth explains that Landgate independently determines GRV and that the annual council rate is calculated using the property’s GRV and the council’s adopted rate. If a house sells for $1 million, that does not mean council rates are calculated as a percentage of $1 million. This is one area where social-media discussions about “property taxes” can become misleading.

Landgate valuation is fundamental to WA property taxation and local-government rating. The valuation methodology differs by purpose.

• Council rates generally use Gross Rental Value for most metropolitan residential properties.
• Land tax, on the other hand, is based on unimproved land value and applies differently.

That distinction can produce very different outcomes. A homeowner therefore needs to understand whether they are talking about:

• council rates;
• land tax;
• water charges;
• insurance;
• maintenance;
• strata;
• or federal income-tax changes.

They are not interchangeable. 

Western Australia’s land tax system generally exempts a principal place of residence.

• The WA Government states that land tax is payable where taxable land exceeds the threshold, and the land is not being used as the owner’s principal place of residence.
• The 2026/27 WA Budget also confirms that land used as the owner’s primary residence at midnight on 30 June is generally exempt from land tax and Metropolitan Region Improvement Tax for the following assessment year.

The current land-tax threshold is $300,000 of aggregated taxable land value. The published WA land-tax scale is:

Aggregated taxable land value	Land tax
$0–$300,000	Nil
$300,001–$420,000	$300
$420,001–$1m	$300 + 0.25% above $420k
$1m–$1.8m	$1,750 + 0.9% above $1m
$1.8m–$5m	$8,950 + 1.8% above $1.8m
$5m–$11m	$66,550 + 2.0% above $5m
Above $11m	$186,550 + 2.67% above $11m

A typical Perth owner-occupier does not suddenly receive a $14,000 annual land-tax bill simply because their home is worth $950,000. That is not how the system works.

The backlash is understandable because households don’t experience expenses as neatly separated policy categories. A homeowner doesn’t think: “Council rates are one expense, insurance is another, maintenance is another.” They think: “How much money does my house take out of my household budget every year?” And this is becoming more important because the mortgage itself remains substantial.

• A 2026 estimate puts the average new owner-occupier mortgage repayment at around $4,369 per month based on a 30-year principal-and-interest loan at 5.92 per cent during the March quarter.
• That works out to more than $52,000 a year in repayments. Add another $14,000 or more in non-mortgage ownership costs, and the annual cash requirement becomes enormous.

Not every household has a $14,000 non-mortgage bill. But the principle is unavoidable: Home ownership has a substantial recurring cost beyond the mortgage.

The $14,000 figure is more psychologically dangerous than financially.

The headline’s biggest impact may not be the amount itself. It may be how buyers think. For years, the Australian property conversation has focused heavily on: Rent versus mortgage. But that is an incomplete comparison. A tenant pays:

• rent;
• utilities;
• contents insurance;
• moving costs.
• A homeowner pays:
• mortgage;
• rates;
• insurance;
• maintenance;
• utilities;
• water;
• repairs;
• transaction costs;
• opportunity cost of capital.

The correct comparison is therefore: Rent versus total cost of ownership. That does not mean renting is always financially superior. It means the comparison should be honest.

1. The hidden maintenance bill

Maintenance is arguably the most underestimated component of home ownership.

• A mortgage is predictable.
• Council rates arrive on schedule.
• Insurance renewals are obvious.
• Maintenance is different.

It waits. Then arrives. A leaking roof doesn’t care about the household budget.

• Neither does a failed hot-water system.
• Neither does a broken air conditioner in a Perth summer.
• Neither does a termite problem.
• Neither does a blocked sewer.

A sensible homeowner should therefore create a maintenance reserve. For example, a hypothetical $900,000 house might warrant a maintenance allowance of: $4,000–$9,000 per year, depending on age, condition, size and inclusions. That is not a government figure or a universal rule. It is a budgeting framework. The correct amount depends heavily on the property. A new build may require much less immediate maintenance. An older home can require significantly more.

2. Perth’s climate makes maintenance a real financial consideration.

Perth homes face a range of environmental stresses. Summer heat can place significant demand on air-conditioning systems.

• Coastal suburbs experience salt exposure.
• Winter rain can reveal roof and drainage issues.
• Older properties may have aging electrical systems.
• Gardens require irrigation and maintenance.
• Pools create another recurring cost category.

Solar installations reduce electricity expenditure for many households but also introduce equipment that eventually needs servicing or replacement. None of these factors automatically makes a property a bad purchase. But each should be reflected in the buyer’s financial assessment.

3. Insurance: the cost nobody wants to discover after settlement

Insurance is one of the fastest-growing concerns for Australian homeowners. It’s particularly important because insurance costs aren’t necessarily proportional to the property’s market value. A $1 million property might cost less to rebuild than another $1 million property depending on:

• construction type;
• location;
• size;
• building materials;
• retaining walls;
• pools;
• landscaping;
• outbuildings;
• heritage features;
• rebuilding requirements.

The key number is therefore not simply: “What is this house worth?” It is: “What would it cost to rebuild this house?” That is an entirely different calculation.

4. Water bills are another forgotten component.

WA households often focus heavily on electricity and mortgage costs while treating water as a relatively small expense. But annual water and wastewater charges form part of the recurring ownership equation. The national analysis behind the $14,000 figure identifies water and wastewater bills among the recurring non-mortgage costs of home ownership. For larger properties, water use can become more meaningful because of:

• gardens;
• lawns;
• pools;
• irrigation;
• larger households.

Again, this isn’t a “tax”. It is simply the cost of maintaining a functioning home.

5. Strata is the elephant in the apartment room.

Perth’s unit market has become increasingly important. REIWA forecast that unit prices could outperform houses in 2026 because affordability pressures were pushing more buyers towards apartments, villas and townhouses. That creates a fascinating ownership-cost trade-off. Units generally require less individual maintenance. But owners may pay:

• strata levies;
• sinking-fund contributions;
• building insurance through the strata scheme;
• special levies;
• common-area maintenance.

A buyer who compares a $650,000 apartment with an $800,000 house solely on mortgage repayments could therefore miss the real difference. A low-priced apartment with substantial strata costs may not be cheaper to own than a modest house. The correct question is: What is the total annual holding cost?

Read about: Did you overborrow on your mortgage? What could help you

Perth’s unit market is becoming strategically important.

REIWA’s January 2026 forecast expected Perth’s median unit price to rise 15–20 per cent during the year, compared with more than 10 per cent in house prices. That prediction reflects an important structural shift. As houses become less affordable, buyers do not necessarily leave the market. They change the type of property they are willing to buy. This means: House → townhouse → villa → apartment can become an affordability ladder. But each step changes the ownership-cost structure. Let’s construct a hypothetical Perth example.

Scenario A — established family house

Purchase price: $850,000. Assume the buyer has a substantial deposit and a mortgage sized according to lending capacity. This is not a Perth-wide official average. It is a budgeting illustration. For an older, larger, or more complex home, the total could exceed $14,000. For a newer, smaller property, it could be lower. A reasonable annual non-mortgage budget might look something like:

Cost	Illustrative annual allowance
Council rates	$2,000
Water/service charges	$1,600
Home insurance	$2,000
Maintenance reserve	$4,000
Pest/garden servicing	$800
Appliance/repair reserve	$1,000
Miscellaneous property costs	$600
Illustrative total	$12,000

Scenario B — an older $700,000 house

Purchase price: $700,000. It may initially look significantly more affordable. But imagine it needs:

• new air-conditioning;
• fencing;
• roof repairs;
• painting;
• landscaping.

Suddenly the first-year ownership cost could be much higher than expected. The buyer might have saved $150,000 on the purchase price but spent $30,000 fixing the property. This is why property condition matters almost as much as property price.

Scenario C — a $650,000 unit

Purchase price: $650,000. Maintenance might be lower. But suppose annual strata costs are $8,000. The buyer may have:

• lower maintenance;
• lower building insurance responsibility;
• fewer external repairs;

but a much higher recurring strata obligation. Again, total ownership cost matters more than headline price.

For first-home buyers, the issue is particularly important.

• The first major challenge is getting the deposit.
• The second is passing the bank’s serviceability assessment.
• The third is surviving the first few years after settlement.
• That third stage is often overlooked.

A first-home buyer may use nearly all available savings to complete the purchase. They then move into the property with very little cash buffer. Three months later:

• the air conditioner fails;
• the washing machine breaks;
• council rates arrive;
• insurance renews;
• a plumbing problem appears.

Suddenly, the household uses credit cards or personal loans. That is where home ownership becomes financially stressful.

The best buyers are not necessarily those who borrow the maximum amount the bank will approve. They are those who retain a buffer. For a Perth buyer in 2026, the ideal purchase may not be the most expensive property they can technically afford. It may be the property that allows them to maintain:

• an emergency fund;
• mortgage buffer;
• maintenance reserve;
• insurance reserve;
• family spending capacity.

This is particularly important in a market where prices have already increased dramatically. REIWA’s latest figures show that listings have increased substantially. As of the week ending 23 August 2026, Perth had 7,204 properties listed for sale, compared with 3,145 a year earlier. That represents an extraordinary change in available choice. At the same time, weekly sales were lower than a year earlier:

• 620 properties sold in the referenced week;
• compared with 793 in the same week the previous year.

This does not automatically mean prices will collapse. It does indicate a market where buyers have greater ability to negotiate. And this is where the “$14,000” conversation becomes commercially relevant.

For a Perth-focused agency such as Bargoti Real Estate, the changing market creates an opportunity to move the conversation beyond simply quoting a sale price. The role of a modern real estate agency is increasingly about helping buyers and sellers understand the complete market picture.

For buyers, that means asking:

• What is this property worth?
• What is the suburb doing?
• How long are comparable properties taking to sell?
• What is the rental market doing?
• What are comparable properties selling for?
• What are the likely ownership costs?
• Does the property have obvious maintenance risks?
• What is the long-term resale profile?
• What infrastructure is coming?
• What is the supply pipeline?

For sellers, it means:

• understanding competing listings;
• pricing realistically;
• presenting the property properly;
• addressing obvious defects;
• understanding buyer affordability;
• and recognising that buyers now have more choice.

During a hot market, a buyer may have thought: “If I don’t buy this house today, someone else will.” In a more balanced market, the buyer can say: “This property needs $30,000 of work. 

• The roof is aging. 
• Insurance is higher than expected. 
• The air conditioner is near replacement. 

Therefore, my offer needs to reflect those costs.” That is a much healthier property market. It forces sellers to price according to condition.

A $100,000 price difference can be misleading.

Suppose two properties are:

• Property A — $750,000
• Property B — $850,000

At first glance, Property A appears $100,000 cheaper. But imagine: Property A requires:

• $20,000 renovation;
• $10,000 roof repairs;
• $5,000 air-conditioning;
• $5,000 fencing and landscaping.

Now the effective difference is much smaller. Meanwhile, Property B may be recently renovated and require little work. This is why a professional property assessment should consider: Purchase price + immediate repairs + annual carrying costs + expected maintenance.

The $14,000 ownership-cost debate arrives at the same time as major federal tax changes. From 1 July 2027, the Australian Government intends to change how it treats negative gearing for residential investment property. Under the announced reforms, negative gearing for residential property will be limited to new builds, while established properties acquired after the May 2026 announcement will no longer allow rental losses to be deducted against non-residential income such as wages. Properties purchased before the announcement are grandfathered. The Government also intends to replace the existing 50 per cent CGT discount from 1 July 2027 with an inflation-based discount and a minimum 30 per cent tax rate on capital gains, subject to the announced rules. This is a separate issue from the $14,000 ownership-cost figure. But the two conversations are colliding.

• One concern: How much does it cost to own property?
• The other concerns: How attractive is property investment after tax?

Together, they are forcing investors to reassess the numbers.

For an investor, the equation is more complicated than for an owner-occupier. An investor needs to consider:

Income

• weekly rent;
• vacancy;
• rent growth;
• tenant demand.

Expenses

• property management;
• council rates;
• water;
• insurance;
• maintenance;
• strata;
• land tax where applicable;
• repairs.

Finance

• interest;
• principal repayments;
• refinancing risk.

Tax

• deductions;
• negative gearing;
• capital gains tax;
• future policy changes.

Capital growth

• historical growth;
• supply;
• population;
• infrastructure;
• employment;
• suburb demand.

That is a much more complex equation than simply: “The house went up 10 per cent.”

Rental supply has improved from the extreme shortage of previous years. 

• REIWA’s latest metro data shows 2,083 properties available for rent, including 1,400 houses and 683 units, as at the week ending 23 August 2026. The same dataset showed 653 properties rented during that week. 
• The WA Government’s August 2026 housing-market update also reported 2,164 homes/units available for rent in Perth at the week ending 2 August 2026. 

The market is therefore improving in terms of supply. But “improving” does not necessarily mean “easy”. For landlords, this matters. A property that was once rented almost immediately may now take longer. That means investors need to build realistic vacancy assumptions into their financial models. Consider a property:

• Renting for: $700 per week
• Annual gross rent: $36,400

Now imagine the property is vacant for four weeks.

• Lost rent: $2,800
• That is before:
• advertising;
• cleaning;
• maintenance;
• property management;
• council rates;
• insurance.

This is why investors should never calculate returns using: Weekly rent × 52 as though every property is occupied every week.

• Suppose a property costs: $800,000
• and rents for: $700 per week
• Gross annual rent: $36,400
• Gross yield: 4.55 per cent

That sounds reasonable. But the investor still has:

• rates;
• insurance;
• management;
• maintenance;
• vacancy;
• interest;
• potential land tax;
• other costs.

The net return can be dramatically lower. That is why the $14,000 ownership-cost discussion matters to investors perhaps even more than owner-occupiers.

When property ownership becomes expensive, choosing the right suburb becomes a financial decision. Consider these four examples:

Armadale

• Median: $699,000
• Rent: $630/week
• Annual sales-price growth: 21.6%

Baldivis

• Median: $840,000
• Rent: $680/week
• Annual sales-price growth: 16.7%

Victoria Park

• Median: $1.18 million
• Rent: $787/week
• Annual sales-price growth: 18.9%

Cottesloe

• Median: $3.50 million
• Rent: $1,437/week
• Annual sales-price growth: 9.5%

These are fundamentally different markets. There is no universal answer to: “Is Perth property expensive?” The answer depends on: Suburb, dwelling, land, condition, household income, financing, rental demand, future supply and ownership costs.

The strongest investment markets may not be the cheapest.

Perth’s 2026 market illustrates this clearly. A suburb with a $700,000 median house price might look more attractive than a $1.1 million suburb. But if the cheaper suburb has:

• high new-home supply;
• weaker tenant demand;
• longer vacancy;
• lower-income catchment;
• significant competing stock;

then the lower price does not necessarily mean better investment performance. Conversely, a more expensive suburb may have:

• constrained land;
• strong employment;
• established infrastructure;
• limited development sites;
• strong owner-occupier demand.

This is why suburb fundamentals matter more than price alone.

Instead of asking only: “Can I borrow $X?” buyers should run five tests.

Test 1: Mortgage stress

• Could you comfortably service the mortgage if interest rates increased? Even if rates fall, planning for a buffer still makes sense.

Test 2: Ownership cost

• Can you comfortably cover: Rates, insurance, water, maintenance and repairs?

Test 3: Income shock

• What happens if one household member: Loses their job, changes employment and takes parental leave, reducing hours?

Test 4: Property shock

• What happens if you suddenly need: $10,000–$20,000 for an unexpected repair?

Test 5: Market shock

• What happens if the property value falls 5–10 per cent after purchase? Would you still be comfortable holding it for five years?

This final question is particularly relevant after Perth’s extraordinary recent price growth.

Before purchasing a Perth property in 2026, a serious buyer should investigate:

Financial

• Purchase price
• Deposit
• Stamp duty
• Mortgage
• Interest rate
• Repayments
• Council rates
• Water charges
• Insurance
• Strata
• Maintenance

Property

• Building condition
• Roof
• Plumbing
• Electrical system
• Air-conditioning
• Hot-water system
• Termites
• Pool
• Solar
• Fencing
• Drainage

Market

• Suburb median
• Comparable sales
• Days on market
• Listings
• Price reductions
• Rental demand
• Vacancy
• Development pipeline

Lifestyle

• Schools
• Transport
• Employment
• Shops
• Healthcare
• Parks
• Future infrastructure

This may sound contradictory.

• Prices have risen.
• Ownership costs have increased.
• Interest rates remain meaningful.
• Tax rules are changing.

Yet 2026 may still provide better opportunities for disciplined buyers than the peak of FOMO-driven conditions. Because choice is returning. REIWA’s latest figures demonstrate a dramatic increase in properties available for sale compared with a year earlier. More choice means:

• more comparisons;
• more negotiation;
• more time;
• greater ability to inspect;
• less pressure;
• more leverage over vendors.

That is valuable. Good properties can still attract strong competition. But the definition of “good property” is becoming more important. A home that is:

• correctly priced;
• well-presented;
• well-maintained;
• located in a strong suburb;
• appropriately marketed;
• can continue to perform. 

A property that is:

• overpriced;
• poorly maintained;
• badly presented;
• sitting above comparable sales;
• may increasingly struggle.

Suppose a buyer is looking at a $900,000 house. They have two choices.

House A: $900,000.

Needs:

• $20,000 roof work
• $15,000 landscaping
• $10,000 air-conditioning
• $10,000 cosmetic work

House B: $930,000.

Recently renovated and well maintained.

• The second property costs only $30,000 more. But its effective cost may be lower.
• Therefore, sellers should understand: Presentation and condition have a financial value. 

In a more balanced market, buyers can discount properties that require immediate spending. This is one of the most important lessons from the current market.

• A $700,000 property can be expensive.
• A $900,000 property can be better value.
• A $1 million property can be financially sensible.
• A $600,000 property can be financially dangerous.

It depends on: Total cost of ownership. That is why a serious property analysis cannot stop at the listing price. REIWA has already identified affordability, accessibility and availability as major drivers of Perth’s 2026 market. Perth has experienced:

• strong population growth;
• strong property demand;
• constrained housing supply;
• high price growth;
• construction challenges.

REIWA noted that Perth population growth was around 2.2 per cent in the year to June and that new-home completions had declined after reaching a seven-year high in the December 2024 quarter.

• The WA Government’s latest housing data also shows 2,265 dwelling approvals in June 2026.

The supply problem therefore isn’t disappearing overnight.

A homeowner who budgets $1,000 a month for property-related expenses and only spends $700 doesn’t feel stressed. A homeowner who budgets nothing and suddenly receives a $5,000 repair bill feels overwhelmed. Same property. Different financial planning. That is the deeper lesson behind the $14,000 headline. Consider the gap between:

• Armadale — $699,000
• Cottesloe — $3.5 million.

That is roughly a fivefold difference in median house value. Yet both are part of the broader Perth metropolitan market. This demonstrates why “Perth median” is useful for macro analysis but insufficient for an individual property decision.

• The suburb matters.
• The street matters.
• The land matters.
• The house matters.
• The buyer matters.

For the remainder of 2026, Perth buyers and investors should monitor several indicators.

Indicator	Why it matters
Median house price	Measures overall price direction
Median unit price	Shows affordability substitution
Listings	Measures buyer choice
Sales volumes	Measures demand
Days on market	Measures selling pressure
Rental availability	Measures tenant competition
Weekly rents	Measures rental income
Building approvals	Indicates future supply
Population growth	Indicates underlying demand
Interest rates	Determines borrowing capacity
Investor lending	Indicates investor appetite
Construction costs	Influences new supply
Insurance costs	Changes holding costs

Let’s bring the major figures together. Perth housing market — 2026 snapshot:

Metric	Latest available figure
Perth median house price	~$950,000
Perth median unit price	~$682,000
Median house rent	~$750/week
Median unit rent	~$700/week
Properties for sale	7,204
Houses for sale	4,939
Units for sale	1,616
Properties available for rent	2,083
House rental availability	1,400
Unit rental availability	683
June 2026 dwelling approvals	2,265
2025 house-price growth	13.3%
2025 unit-price growth	20.0%

What should buyers do differently now?

1. Don’t use the bank’s maximum borrowing capacity as your target.

If a bank says you can borrow $900,000, that doesn’t mean you should. Your personal comfort level matters.

2. Obtain an insurance quote before making an offer.

This is especially important for coastal properties, older homes, large houses, and properties with pools or unusual construction.

3. Check council rates

Do not estimate them from the purchase price. Ask for the latest rates information and understand the valuation basis.

4. Investigate strata

For apartments and townhouses: Annual levies, sinking fund, special levies, building defects, insurance and planned major works.

5. Get building and pest inspections.

A cheap inspection can save a buyer tens of thousands of dollars.

6. Calculate the first five years.

Don’t just calculate year one. Think:

Year 1: Move-in costs.

Year 2: Maintenance.

Year 3: Insurance increases.

Year 4: Appliance replacement.

Year 5: Potential renovation.

That gives a much more realistic financial picture.

In a market with increasing listings, sellers need to compete for attention. The best strategy is not necessarily to chase the highest possible asking price. It is to create a compelling value proposition. That means:

• realistic pricing;
• professional presentation;
• quality photography;
• clear disclosure;
• maintenance before sale;
• strategic marketing;
• understanding comparable properties.

A buyer who knows they may spend $14,000 or more a year owning a property will be less tolerant of obvious defects. The public reaction to the $14,000 figure is understandable because Australians are exhausted by rising housing costs. They have already dealt with:

• higher mortgage repayments;
• higher rents;
• higher insurance;
• higher construction costs;
• higher household expenses;
• rising property prices.

So when another number appears, the reaction is emotional as well as financial.

This point deserves to be repeated. No universal $14,000 annual home tax applies to Australian owner-occupiers. The $14,000 figure estimates non-mortgage ownership expenses and varies significantly by property, location, and household circumstances. In WA, a principal place of residence is generally exempt from land tax. Council rates are calculated through local-government rating systems, generally using GRV for metropolitan residential properties. No credible market analysis should pretend to know the exact price of Perth property twelve months from now. But the current data gives us clues.

Scenario 1 — Soft landing

• Listings remain elevated.
• Buyer demand stabilises.
• Price growth slows.

This would be a healthy outcome.

Scenario 2 — Flat market

• Prices broadly plateau.
• Negotiation increases.

Real values may decline modestly after inflation.

Scenario 3 — Moderate correction

• Investor activity weakens.
• Borrowing costs remain restrictive.
• Listings rise further.

Prices decline in selected suburbs.

Scenario 4 — Renewed growth

• Interest rates ease.
• The population remains strong.
• Supply remains constrained.
• Buyer confidence returns.
• Prices accelerate again.

The key point is that different suburbs can experience different scenarios at the same time.

Final verdict: the $14,000 story is a warning, not a new tax

The “$14,000 annual home tax” headline is powerful because it touches a nerve. But the reality is more nuanced. No single nationwide $14,000 annual tax applies to Australian homeowners. Instead, the figure estimates the broader recurring costs of owning a house beyond the mortgage. And those costs matter.

• They matter because Perth property has become substantially more expensive.
• They matter because REIWA’s latest data puts Perth’s median house price around $950,000.
• They matter because unit prices have also risen strongly.
• They matter because insurance and maintenance can no longer be treated as insignificant.
• They matter because investor tax settings are changing from 2027.

And they matter because Perth’s market is entering a more balanced phase, with substantially more properties available for buyers than a year ago. Australian buyers are beginning to understand that owning the home is only the beginning of the financial commitment. Perth property market: the numbers that should stay on your radar

Key metric	2026 position
Perth median house price	$950,000
Perth median unit price	$682,000
Median house rent	$750/week
Median unit rent	$700/week
Perth properties for sale	7,204
Perth houses listed	4,939
Perth units listed	1,616
Rental properties available	2,083
2025 house-price growth	13.3%
2025 unit-price growth	20.0%
June 2026 dwelling approvals	2,265
Armadale median house	$699,000
Baldivis median house	$840,000
Rockingham median house	$853,000
Victoria Park median house	$1.18m
Cottesloe median house	$3.50m

The $14,000 figure should not scare Australians away from home ownership. But it should make them better buyers. Home ownership remains one of the most important financial decisions a household can make.

• The mistake is not spending money on a home.
• The mistake is buying a home without understanding the full cost of keeping it.

For Perth in 2026, that lesson is becoming particularly important. The market is no longer simply about chasing rising prices. It is about value, affordability, quality, cash flow and long-term resilience. And in a market where Perth’s median house price is approaching the $1 million mark, that distinction could become one of the defining property stories of the next several years. The real question isn’t whether owning a home costs $14,000 a year. The real question is: How much will your particular home cost you every year — and does the value you receive justify it? That is the question Perth buyers should be asking in 2026. And that is the conversation the next phase of the Perth property market will increasingly be built around.

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