Perth’s housing market has kicked off 2026 with a surge that few anticipated during the quieter years of the late 2010s. In the last couple of years, the city has moved from being Australia’s exception in terms of affordability to standing out as one of the nation’s top-performing capitals. Despite rising property prices, it is now lending rules that are quietly calling the shots. This year, how much a buyer can borrow is determined by more than just their income and savings. Lenders are focusing on:

• Stress testing
• Tougher serviceability buffers
• Closer examination of household spending
• Stricter regulatory checks

For Perth buyers—especially first home buyers and families upgrading in Baldivis, Ellenbrook, and Byford—stricter lending requirements now define what they can afford more than price increases. Buyers are purchasing, and demand remains high. Tighter lending criteria now set the terms for how buyers negotiate, which suburbs they consider, and which property types they can pursue.

Property values keep climbing, and interest rates have not returned to their previous lows. Banks still use a 3% buffer above home loan rates when assessing applications. If a borrower’s rate is 6.3%, banks assess repayments at over 9%. For example, a Perth couple earning $165,000 and looking to buy in Scarborough may find their borrowing limit cut by $70,000 to $120,000 compared to pre-2022 limits. Lending changes in 2026 are clear:

• Serviceability buffers remain high. Banks are more thorough in checking living costs.
• They are keeping a closer eye on debt-to-income ratios, especially for those with higher risk.
• Lenders hesitate to approve loans greater than six times household income, except in rare cases.

This trend affects Perth’s upgraders, especially in mid-tier suburbs like Dianella or Morley, where house prices now exceed $900,000. Most buyers do not face outright refusals but receive smaller loan offers than expected. These new limits matter. When faced with constraints, buyers often shift their shopping targets or delay purchases.

Perth Market Snapshot – Lending Environment Context (2025–2026)

Metric	2025 Estimate	Early 2026 Estimate	2026 Projection
Median House Price (Perth Metro)	~$930,000	~$1,000,000–$1,080,000	+6% to +12% growth
Median Unit Price	~$650,000	~$700,000+	+10% to +18% growth
Median Weekly Rent	~$650	~$700–$720	Moderate increase
Vacancy Rate	~1.5%	~2.0–2.5%	Slight stabilisation
Average Interest Rate (Owner-Occupier Variable)	~6.0–6.3%	~6.2–6.5%	Stable to slightly easing

In Baldivis, where median house prices are still more affordable than those in the inner coastal suburbs, buyers who find their borrowing capacity reduced often choose to move further south rather than leave the property market altogether. For example, a family that initially planned to buy a $750,000 home in Safety Bay might instead adjust their expectations and opt for a property in Baldivis for around $680,000. In contrast:

• In Scarborough—where median prices are much higher—a drop in borrowing power leads some buyers to consider units instead of standalone houses.
• With limited properties on the market, even a modest decrease in loan capacity can intensify competition among buyers.

Bargoti Real Estate has noticed an increase in conditional offers and longer finance approval times in early 2026, a change from the swift, unconditional offers seen in 2023.

For example, a hypothetical scenario that mirrors current trends. A single professional with an annual salary of $95,000 wants to buy a $520,000 property in Ellenbrook. Previously, with older lending standards, their borrowing limit could have been up to $540,000. However, with the stricter serviceability testing in 2026, their approval would be closer to $490,000. This means they either need a larger deposit or must look for a cheaper property, such as a townhouse rather than a freestanding house. When this situation is repeated among many buyers, it becomes clear how lending criteria subtly influence the growth of particular suburbs. Notably, more restrictive lending also affects the rental market. If tenants are unable to purchase homes as quickly, they stay in the rental market for longer, which maintains high rental demand. While Perth’s rental vacancy rate is better than during the crisis, it is still below the level economists call balanced. Thus, lending restrictions are indirectly helping keep the rental market strong. This helps explain why rents have remained steady, even as more properties are listed for rent.

Descriptive Impact of Lending Criteria Changes (2026)

Lending Change	Impact on Buyers	Impact on Tenants	Market Insight
3% Serviceability Buffer	Reduced borrowing capacity	Delays in tenant transition to ownership	Slows entry-level buying demand
Tighter Expense Verification	Greater scrutiny of discretionary spending	Longer rental tenure	Encourages financial discipline
Debt-to-Income Monitoring	Caps high-income leverage	Fewer investor purchases	Moderates speculative growth

Looking towards the end of 2026, a slight reduction in interest rates could see a modest improvement in borrowing power. Nonetheless, it’s unlikely that regulators will abandon their cautious stance, as careful oversight is intended to prevent the property market from overheating. Perth remains comparatively affordable compared with Sydney or Melbourne, which continue to attract buyers. However, price growth is expected to slow from the sharp increases of recent years to more manageable levels. For those looking to buy, being thoroughly prepared is more important than ever—this includes having tidy finances, manageable debt, and realistic expectations about which suburbs to target. For tenants, the outlook is mixed. Lending restrictions are likely to keep rental demand high, but as more properties become available, tenants may see a slight improvement in rental choices by the end of the year.

Rising Serviceability Standards — What Buyers Must Know in 2026

1. In 2026, how lenders in Australia—particularly in Perth—determine whether buyers can afford a loan is changing dramatically, reshaping the entire property market. This shift heavily influences buyer behaviour, demand patterns, and family decisions about property location. For those looking to purchase in Perth this year—particularly in sought-after areas like Canning Vale, Joondalup, or South Fremantle—understanding serviceability is essential. Because of these factors, some buyers are approved for lower loan amounts than expected, prompting many to reconsider their expectations ahead of inspections.

2. Serviceability refers to the assessment lenders make to decide if a borrower can keep up with repayments—not only now, but if interest rates rise. After several recent rate hikes and with no certainty of notable decreases in 2026, lenders are taking a careful approach. They generally require borrowers to demonstrate they could handle repayments if the interest rate were at least 3% higher than their actual loan rate. For example, a borrower on a 6.3% loan is evaluated as if their rate is above 9%. This means the amount they are allowed to borrow is reduced, as repayments look much more expensive in the lender’s calculations.

Perth Lending & Serviceability Conditions (2025–2026)

Metric	Prior (2022–23)	Latest (2025–26)	2026 Outlook
Stress Test Buffer	~2.0%	~3.0%	Remains elevated
Assessable Living Expenses Scrutiny	Average	High	Increasing emphasis
DTI (Debt-to-Income) Monitoring	Moderate	Stringent	Ongoing
Serviceability Ratio Constraint	Less conservative	More conservative	Persistent trend

This table shows that the serviceability environment has not softened. Even if a buyer has a good income and a solid deposit, their ability to borrow remains constrained by how lenders measure day-to-day expenses and future risk.

3. For buyers in Perth, this makes homes seem less affordable than the headline prices might indicate. The median house price could be around $1.08 million in 2026, but what buyers can actually borrow depends on how lenders assess their income reliability, existing debts, and everyday spending. Lenders gave applicants more leeway when reporting living costs, allowing for some flexibility in discretionary spending. Since 2023, however, lenders have tightened their reviews. Expenses such as groceries, utilities, and transport are closely scrutinised, and borrowers must explain their lifestyle costs in line with national benchmarks.

4. To illustrate this, consider how serviceability standards are affecting buyers in specific Perth suburbs.

• Canning Vale, popular with families thanks to schools, parks, and its location, had median house prices of $900,000-$950,000 in 2026.
• Strict serviceability checks often reduce borrowing power by $50,000 to $90,000, leading some buyers to consider smaller homes or townhouses nearby.
• Buyers in Canning Vale often find their borrowing power is reduced by $50,000 to $90,000 due to strict serviceability checks, compared to what they initially expected.
• As a result, some buyers who aimed for a four-bedroom house are now considering three-bedroom properties or nearby townhouses instead.
• Joondalup attracts buyers and investors thanks to its public transport and local amenities.
• Buyers aged 28-40 with combined incomes around $180,000 often see borrowing approvals cut by nearly 10% once serviceability buffers and DTI checks are applied, affecting affordability in the area.
• Buyers aged 28 to 40 with combined incomes of about $180,000 frequently see their approved borrowing reduced by nearly 10% once serviceability buffers and debt-to-income (DTI) checks are applied to both incomes.

 This dynamic increases the pressure at the negotiation stage, even in areas that might have previously appeared affordable. Serviceability has become a leading factor in determining which suburbs are truly attainable for buyers.

5. Take, for example, a hypothetical couple, Emma and Nasir, both in their early thirties. They planned to buy a three-bedroom home in Dianella for about $880,000 and have secure jobs with excellent credit. Under previous lending rules, they expected to borrow roughly $910,000. With the 2026 serviceability standards, however, they were approved for just under $840,000. This meant they had to choose between saving a larger deposit or reconsidering the type of property they wanted. By staying flexible with their strategy, they remained in the market and positioned themselves for future growth, all while maintaining financial security.

6. Tenants are indirectly advantaged by stricter serviceability rules, as these slow down the number of people moving from renting to buying. This helps keep rental demand high—even in suburbs where more properties are becoming available—so rent prices stay strong, and vacancy rates remain low. In mid-2026, average weekly rents in Perth were still about $700–$720, well above previous years’ levels. Because tougher serviceability standards keep more people renting, they continue to support higher rental prices. To succeed in this new environment, buyers need to adjust their approach by:

• Financial paperwork — keeping thorough records of spending habits and savings history.
• Flexible deposits — saving a bit more for a deposit to counteract lower borrowing limits.
• Suburb selection — focusing on areas where actual borrowing power matches property prices.

Ultimately, this does not mean homes in Perth are out of reach. Instead, it underscores that detailed, realistic planning is more crucial than ever for buyers hoping to succeed in today’s market.

End of Key Grants & Incentives — Impact on First Home Buyers in 2026

1. For those looking to purchase their first home in Perth and throughout WA, government grants and incentives have traditionally played a vital role in financial planning. These measures have offered both direct financial relief and a sense of reassurance, signalling that home ownership could be within reach with the right knowledge and timing. Yet, by 2026, many long-established support programs will have either ended or been substantially altered. This shift is having a notable impact on how buyers act, which suburbs are in demand, and overall confidence in the property market—particularly for first-home buyers facing higher prices and tougher borrowing criteria.

Key Grants & Incentives — Status (2025–2026)

Scheme	Available?	2025 Status	2026 Status / Outlook
First Home Owner Grant (FHOG) – WA	Yes	$10,000 for new builds	Still active, eligibility remains capped at property value limits
Federal HomeBuilder Grant	No	Closed	Applications closed, no new approvals
WA Building Bonus Grant	Limited	Closed for detached homes; off-the-plan still available	Restrictive access remains
Stamp Duty Concessions (WA)	Yes	Expanded thresholds from 2024	Continues, benefiting eligible FHBs
Federal 5% Deposit Guarantee	Yes	Expanded participation	Ongoing and expected to remain into 2026

This table shows a mix: some support remains useful, while others have either closed or become more limited — and this has influenced how Perth buyers plan their entry into home ownership.

2. The First Home Owner Grant (FHOG) remains available in WA in 2026, but it now has tighter eligibility requirements, particularly relevant for Perth buyers. The scheme offers $10,000 to eligible first-home buyers who are buying or building a new property, such as a townhouse or unit, on the condition that it will be their main residence. Notably, the grant excludes established properties, setting it apart from previous versions of the policy. Property value limits also apply for those seeking to qualify:

• In most of the metropolitan region, the property must be valued at $750,000 or less.
• Properties located north of a designated latitude may be eligible for a higher threshold, typically around $1 million.
• In areas such as Balga, Armadale, or Gosnells, it is possible to find a small new build or townhouse within the $750,000 cap.
• In mid-tier and inner-city areas such as Mount Lawley or the Freo coastal strip, many properties are now priced above the grant’s cap, making them ineligible for the incentive.

This gap between the grant limits and actual market prices is why many buyers view the FHOG more as a bonus than a significant financial advantage.

3. Previously, the Federal Home Builder grant encouraged construction by providing lump sum payments to builders for eligible properties. This program has ended, with applications only allowed for contracts signed earlier and finalised by mid-2025. Buyers in 2026 will find no HomeBuilder-style support. As a result, the focus has shifted:

• Now, buyers plan based on market conditions instead of relying on sporadic government grants.
• The Building Bonus grant, which previously assisted those building new detached dwellings and some off-the-plan projects, has mostly run its course, with applications now closed for most property types.
• While some off-the-plan purchases still have restricted access, the straightforward, wide-reaching bonus grants of recent years are no longer realistically available to most Perth buyers.

A positive for first-home buyers in WA is the continued stamp duty concessions. These were expanded in the 2024–25 State Budget and remain available in 2026.

4. First-time buyers who purchase an existing property can take advantage of reduced thresholds, meaning no stamp duty on homes up to a certain value and discounts above that limit. For example, someone buying their first home for about $450,000 may not have to pay any stamp duty, which results in significant savings. Properties valued up to $600,000 are still eligible for a discount. While this offers welcome relief for many, it does not alter the underlying market pressures in Perth, where the median house price is nearer to $1 million. Even though traditional grants have become less prominent in 2026, federal initiatives continue to play a role.

5. The most notable is the government’s 5% deposit guarantee, which is part of broader federal measures to help first-home buyers purchase with a smaller deposit and avoid lenders’ mortgage insurance. Following its expansion—with broader eligibility and the removal of participation limits—tens of thousands of people across Australia, including in Perth, have taken advantage of this program to secure their first home. However, these schemes can be contentious. Some experts caution that easier access to high loan-to-value ratio finance can actually drive up prices, especially at the more affordable end of the market.

6. In Perth, where, despite the lower deposit requirement, price limits and real affordability in suburbs like Baldivis, Ellenbrook, or Clarkson can diminish the scheme’s advantages. Support for buyers in 2026 is more limited and targeted than before. Substantial government grants are no longer broadly available. Current incentives are:

• Primarily available for new builds, subject to property value caps, and useful for budgeting, though unable to fundamentally change affordability.
• For buyers in up-and-coming mid-market areas like Balga, Bassendean, or Armadale, combining grants with stamp duty concessions can still meaningfully reduce upfront costs and deposit requirements.

However, for those looking to purchase in inner-city or coastal locations such as Mount Lawley or Scarborough, these incentives offer limited benefit because property prices exceed the eligibility caps.

New Tenant Protection Regulations & What Tenants Must Expect in 2026

1. Perth and other major Australian cities have faced higher rents and fewer available properties, prompting state governments—such as WA—to introduce substantial tenancy law reforms. These changes aim to balance tenant protection with property owner interests, impacting how rentals, disputes, and expectations are managed in 2026. Tenants in Mount Lawley, Fremantle, Swanbourne, and Midland should be aware of both current and evolving rules.

2. Since mid-2024, WA’s tenancy reforms have gradually taken effect, updating the Residential Tenancies Act 1987. By 2026, these changes will be standard. Key updates include:

• Rent Bidding Banned
• Rent Increases Limited to Once Every 12 Months
• Pets and Minor Modifications Permitted
• Streamlined Bond Release Process
• Ban on Retaliatory Actions

Rule Change	What It Means	Effective Result
Rent Bidding Ban	Advertised rent must be fixed	More transparent pricing
Once-Yearly Rent Increases	No more increases within 12 months	Greater financial certainty
Pets & Minor Modifications	Tenants have more freedom in their home	Better long-term comfort
Streamlined Bond Release	Tenants and landlords both can apply	Faster, fairer bond outcomes
Retaliatory Action Restrictions	Prevents unfair landlord responses	Enhanced tenants rights

3. Property owners and real estate agents cannot encourage rental offers above the advertised price. Listings must state a single price. Although tenants may offer more, landlords cannot solicit higher bids. Previously, rents on ongoing leases in WA could increase multiple times per year. Now, only one increase is allowed per 12-month period, giving tenants more stability and clarity.

4. Tenants now enjoy clearer rights regarding pets and minor home alterations, such as hanging artwork or making small improvements, and cannot be categorically denied. Landlords must respond to these requests within the designated timeframes and may refuse them only for specific, reasonable reasons. A key improvement for tenants is the streamlined bond system. Previously, only landlords could apply to release the bond, often sparking disputes that escalated into lengthy court battles.

5. Under the updated legislation, tenants can submit their own bond release applications. Unresolved disputes are now referred to a Commissioner for a decision, rather than proceeding directly to the courts. If tenants assert their rights, for example, by requesting repairs, landlords may not retaliate by issuing eviction notices or increasing rent. These changes provide tenants with a clearer, safer way to ensure their homes remain properly maintained and livable.

6. For Perth tenants, these reforms have created a more stable and equitable rental market, especially after a period of sharp rent increases. Although the median weekly rent across Perth remains high—between $700 and $720 in 2026—tenants now enjoy robust legal protections and more explicit rights. In practical terms:

• Financial Certainty – Limiting rent rises to once a year helps tenants budget, especially in high-cost suburbs like South Perth, Victoria Park, or Leederville.
• Lifestyle Security – The ability to request pets or make small modifications empowers tenants to personalise their rentals. This is especially important for long-term tenants, families, or residents in close-knit communities such as Mount Hawthorn or Claremont.
• Less Stress Over Bond Refunds – Bond refund disputes have long troubled tenants. The new system streamlines applications and ensures the Commissioner reviews disputes impartially, reducing emotional and financial stress.

7. Rental demand in Midland is climbing due to convenient transport links and a growing population, while South Fremantle’s coastal appeal attracts higher earners. In Midland, annual rent increase caps benefit tenants, especially in older properties. In South Fremantle, rules on fixed-rent listings help tenants gauge negotiating room and application standing. These reforms have fostered a more orderly market, with greater transparency as property managers address interest from families and professionals alike.

8. Despite stronger tenant rights, tenants should stay informed about their responsibilities and the specifics of the new rules:

• Notice and Timing
• Pet and Modification Requests
• Bond Release Process

Landlords must give 60 days’ notice before a rent increase. Tenants should track their lease anniversary to anticipate lawful increases. Pet requests must be in writing; landlords have 14 days to reply, or approval is automatic. Tenants can initiate bond release, but disputes may occur. Having evidence like exit reports or damage proof can help tenants present a strong case to the Commissioner.

9. Tenant protections in WA are expected to remain strong, though discussion about abolishing no-grounds evictions is growing. Surveys show strong public support, although no law has changed. As a result, tenants feel safer and better informed, while landlords and agents adjust. With vacancies low, informed tenants who manage their finances are well placed, and reforms continue to promote fairness and security.

Changes to Rental Bonds & Security Measures — What Perth Tenants and Investors Must Know in 2026

1. Rental bonds and security requirements are fundamental to renting in WA. Traditionally, bonds have played two main roles:

• Safeguarding landlords against potential property damage or unpaid rent.
• Assuring tenants that their money is kept safe until their lease ends.

The 2026 reforms to rental bonds have transformed this aspect of the rental process. These updates make resolving disputes easier, clarify the rights of both tenants and landlords, and change how both sides handle the transition in and out of leases.

2. For tenants across Perth — from Midland to Scarborough, Cottesloe, and Balga — knowing how bonds work is essential. For property owners and managers, adapting to these changes helps reduce disagreements and enhances the overall performance of their rental portfolios by improving relationships with tenants. Prior to these changes, rental bonds were often a major source of conflict in the rental sector. Arguments about cleanliness, distinguishing general wear from actual damage, unpaid utilities, and repair bills would routinely delay the return of bonds for weeks or months.

3. Landlords and property managers previously struggled to protect their properties while handling tenants’ money fairly. The 2026 reforms now provide speedier, more transparent systems for all parties. With Perth’s vacancy rate still tight at about 2.0 to 2.5 per cent and tenants moving frequently, reliable bond processes are more important than ever. A key practical change is that tenants can now submit a bond release application straight to the appropriate tenancy authority, without needing the landlord’s input. This gives tenants greater autonomy over the process. Rental Bond Procedures — Pre-2024 vs 2026:

Feature	Pre-2024 Bond Process	2026 Bond Process
Who can apply for bond release	Landlord or agent only	Both tenant and landlord
Dispute resolution	Through Magistrates Court	Through Tenancy Commissioner
Bond return timeline	Uncertain / slow	Targeted and monitored
Required documentation	Limited standardisation	Clear digital evidence process

These reforms simplify a previously complex, dispute-prone process.

4. In the past, landlords or agents largely controlled bond release requests, leading to disputes that sometimes escalated through complex and costly legal channels. With the new approach, tenants can put forward their case with supporting evidence and have disagreements managed within a clear decision-making process overseen by a Tenancy Commissioner. Unresolved bond disputes were often taken to the Magistrates’ Court, which was both lengthy and costly for landlords and tenants alike. As of 2026, cases that cannot be settled between parties are now resolved by a Tenancy Commissioner with specialist knowledge in rental law.

5. This process is quicker, more informed, and less daunting for everyday tenants. Property owners and managers also benefit, as they can avoid court hearings and still achieve fair results without incurring high legal fees. Digital submission of evidence — like condition reports, photos, and written correspondence — now provides a more efficient and transparent way to settle disputes. A common reason for bond disputes has long been uncertainty about what constitutes fair wear and tear versus tenant-caused damage. The new reforms provide clearer definitions and guidance in tenancy laws, making it easier to determine what may legitimately be taken from a bond.

6. For example, mild paintwork fading or general carpet wear in a frequently used rental is now considered standard wear and tear, while intentional damage — such as holes in walls or broken appliances not listed on the original condition report — can be rightfully deducted from the bond. This greater clarity helps both tenants and landlords: tenants know what’s expected when they leave, while landlords have stronger grounds for legitimate deductions.

Descriptive Impacts on Tenants and Investors (2026):

Reform	Impact on Tenants	Impact on Landlords/ Investors	Market Insight
Tenant-initiated bond release	Faster control, less stress	Fewer unnecessary delays	Improves tenant confidence
Commissioner dispute resolution	Less legal cost, clearer outcomes	Efficient asset protection	Professionalised system
Clear wear and tear definitions	Reduced conflicts over minor issues	Fairer deductions where appropriate	Reduces tension at lease end

7. In coastal suburbs like Scarborough and Cottesloe, rental properties turn over frequently as young professionals and short-term tenants seek the lifestyle. Faster bond returns and dispute resolution make the leasing process smoother for tenants. Landlords benefit from shorter vacancy periods and efficient property management, which are crucial when high demand keeps properties occupied. Suburban centres focused on education and commuting, such as Midland and Kelmscott, also see benefits—families who move for work or school experience a more streamlined process.

8. Quicker bond settlements help tenants manage finances confidently, supporting smooth transitions—whether to a new rental or towards home ownership. The new bond rules deliver these key advantages for Perth landlords and investors:

• Lowered legal and administrative expenses.
• Speedier settlement of bond-related disagreements.
• Clearer guidelines around valid deductions.
• Stronger relationships with tenants, encouraging longer tenancies.

These advantages directly support stable rental income and stronger investor confidence. In high-demand areas like Joondalup and Willetton, efficient bond management ensures properties remain occupied and reduces administrative effort.

Planning & Development Rule Changes — Suburbs on the Change Map in 2026

1. In 2026, planning reform is quietly reshaping Perth’s property market by changing zoning, increasing densities, and driving urban infill. These reforms directly impact land values, future housing stock, neighbourhood character, and capital growth prospects. Suburbs once seen as static are emerging as new growth areas, while others are being preserved with stricter controls. In 2026, you must grasp these changes because today’s planning decisions shape property outcomes for years.

2. WA’s planning system now emphasises: Boosting housing numbers without expanding the city’s footprint.

• Promoting medium-density housing close to public transport and key hubs.
• Maintaining neighbourhood character while supporting targeted renewal.
• Accommodating population growth driven by migration and job opportunities.

This focus already brings changes in zoning and density permissions to both established and emerging areas. If you identify where new development accelerates and where rules limit it, you position yourself strongly in the market.

3. A number of Perth suburbs feature on what real estate agents refer to as the “change map” – locations where planning changes are driving redevelopment, increased density, or mixed-use projects.

• Baldivis continues to see advantages from growth strategies that encourage new family homes, residential estates, and improved infrastructure.
• Higher-density permissions near shopping precincts have led to more townhouses and villas, boosting supply and attracting first-home buyers.
• Ellenbrook, with better transport links and zoning that supports medium-density options, is shifting from an outer suburb to a self-sufficient residential centre.
• Planning updates have paved the way for a range of housing choices, appealing to both investors and those looking to live there.
• Scarborough’s attraction as a coastal area is now complemented by planning measures that support apartment projects and mixed-use buildings close to the beach and local activity areas.
• As a result, there’s greater interest among buyers in units and townhouses that fit the suburb’s new density direction.

Thanks to its closeness to train lines and the city centre, Bayswater has become a focus for infill development. Larger, older blocks are being split, making way for villas and multi-dwelling properties rather than traditional single homes.

4. While some suburbs are actively changing through redevelopment and growth initiatives, others are intentionally preserved through planning rules that protect heritage and restrict major redevelopment. In suburbs undergoing change, increased supply and new housing types are becoming common. In contrast, protected suburbs maintain limited property supply and a stable, established character. Buyers in protected areas often prioritise heritage and long-term value over subdivision or redevelopment opportunities. Such planning measures often result in:

• Greater stability in land values.
• Slower increases in available housing.
• Continued strong demand from owner-occupiers.

A home on a block that can be split in a growth area might provide the option for dual income in the future. Meanwhile, a villa close to major transport routes could see increased demand from tenants as more people move into the area. For buyers and tenants, understanding not only a suburb’s current state but also how planning reforms may shape its future is crucial.

Changes to Tax Settings, Land Tax Pressure & Investor Behaviour in 2026

1. In 2026, taxation is a major driver of property choices in Perth, surpassing emotion, lifestyle, and even price increases. Adjustments to land tax thresholds, stricter compliance measures, and reductions in some concessions are now affecting how investors organise their portfolios and how buyers calculate ongoing costs. While tenants may not directly see these changes, they certainly feel their impact. As investors face higher holding expenses, this often translates to changes in rent, property availability, and upkeep.

2. In reality, tax policy and tenants’ experiences are more closely linked than most people think. Grasping the impact of current tax rules on Perth’s property market is crucial for buyers, tenants, and investors this year. WA has long been considered more favourable for investors than the eastern states. But after significant price rises between 2023 and 2025, many owners now fall into higher land tax brackets—even if they haven’t bought extra properties. At the same time, authorities are enforcing stricter checks on declarations, ownership arrangements, and exemptions.

Land Tax & Holding Cost Pressure (Indicative Movement):

Factor	Earlier Situation	2026 Reality
Land values	Moderate growth	Significant uplift pushing higher tax brackets
Threshold impact	Few investors affected	Many long-term owners now liable
Compliance scrutiny	Limited	Stronger verification and reporting
Portfolio strategy	Hold and wait	Restructure, sell or rebalance

3. When costs for land tax and compliance costs rise, investors rarely bear them. In Perth, where vacancies remain low, extra costs are often passed on to tenants through higher rents. Tenants in popular areas may see more rent increases. Regions with greater supply, thanks to planning changes, might see rents stabilise as competition grows. This explains why rents in Bayswater differ from Fremantle or Scarborough, even though all are sought-after. In suburbs with rapidly rising land values, such as Scarborough, South Perth, and Mount Lawley, investors face much higher annual costs.

4. In 2026, typical responses include:

• Performing properties to reduce the total taxable land value.
• Shifting focus to higher-yield suburbs where rent offsets tax pressure
• Reviewing ownership structures with financial advisers.
• Increasing rents where market conditions allow.

These investor actions are changing rental supply patterns across Perth.

5. A clear trend in 2026 is that investors are offloading older, lower-yield properties in blue-chip suburbs, opting instead to buy newer homes in expanding areas like Ellenbrook and Baldivis, where yields are higher, and land values are relatively low. This shift does not signal that premium suburbs are weakening; rather, it highlights a more strategic approach by investors, who are now balancing capital growth with efficient holding costs. For buyers, this means more well-positioned properties in established suburbs are coming onto the market as investors streamline their portfolios.

6. Investors are also expected to keep more precise records of ownership, exemptions, and land use, leading to increased use of professional property managers and accountants. People buying in Perth in 2026 may notice a greater selection of properties in high-end suburbs, as investors sell amid increased tax pressures. However, those planning to invest must now carefully consider the true ongoing costs from the beginning. The purchase price is no longer the sole factor; yearly tax liabilities are now a key part of what buyers can actually afford.

7. By the end of 2026, the market is expected to show more distinct divisions:

• Owner-occupiers strengthening their presence in premium suburbs.
• Investors are concentrating on growth corridors with favourable yields.
• Tenants are seeing varied rent patterns depending on local supply changes.

Tax rules will have changed the pattern of ownership across different parts of Perth, though subtly and significantly. Tax policy may not often make the news in real estate, but in 2026, it stands out as a major influence on decisions to buy, sell, or rent. People who understand these shifts are better placed to make sound choices for the future, avoid unnecessary financial pressure, and secure strong positions in Perth’s changing property market.

The End of Some Grants & Incentives — What Buyers and Tenants Lose (and Gain) in 2026

1. Over the past few years, government grants and incentives have played a behind-the-scenes role in driving Perth’s property market. Assistance for first home buyers, building grants, stamp duty concessions and other targeted programs have made it easier to purchase property and encouraged new construction throughout WA. By 2026, many of these measures will have ended, become harder to access, or been replaced with more focused support. The Perth market is now operating with much less government intervention, relying instead on real factors such as supply, demand, job growth and migration.

2. As a result, affordability, timing and decision-making for buyers and tenants are being reshaped in practice. Between 2020 and 2024, the widespread availability of incentives generated a sense of urgency. Many buyers hurried to lock in new builds, while developers fast-tracked housing estates on the city’s outskirts. Construction boomed in locations where grants made house-and-land deals more affordable. In 2026, with most incentives now gone:

• Fewer buyers are opting for new builds simply because of the financial benefits.
• Demand is returning to established houses and villas.
• Builders are experiencing steadier enquiries rather than surges driven by grants.
• Buyers are focusing on long-term value rather than immediate savings.

While this creates a more balanced market, it also eliminates a financial safeguard that many first-home buyers previously relied on.

3. Incentive Landscape — Then vs Now:

Incentive Type	Earlier Availability	2026 Situation
First Home Owner grants for builds	Widely utilised	Reduced or targeted eligibility
Stamp duty concessions	Broad relief thresholds	Narrower criteria
Construction stimulus schemes	Strong post-COVID support	Ended
New build financial appeal	Grant-driven	Market-driven
Buyer urgency	Incentive deadlines	Lifestyle and value focus

This change has altered buyer flow across Perth’s suburbs.

4. Neighbourhoods that grew quickly during the incentive period—such as Baldivis, Ellenbrook and parts of Byford—are witnessing a clear shift in how buyers make decisions. In the past, buyers were drawn to these locations because government grants made building a new house much more affordable. By 2026, however, buyers are weighing these suburbs more carefully against established areas nearer to the city centre, as the cost-benefit of building has diminished. Consequently:

• There is increasing interest in established houses in middle-ring suburbs.
• Villas and townhouses are becoming more popular choices for first-home buyers.
• House-and-land packages now tend to remain on the market for a bit longer.

5. Where previously a buyer might have built a home on the outskirts of Baldivis in 2023, they may instead opt for a villa in Bayswater or an established property in Morley in 2026, as grants no longer bridge the price gap. Without substantial incentives, first-home buyers are realising:

• They need to save bigger deposits.
• The ability to borrow is now more important than qualifying for government support.
• People are rethinking which locations best suit their needs.

This gradual change is quietly altering demand throughout Perth. When buyers delay purchases due to reduced financial support, they end up renting for longer periods. This keeps rental demand strong—especially in middle-ring suburbs near major workplaces. Tenants in areas such as Scarborough, Victoria Park, and East Perth experience consistent demand. More potential buyers continue renting while they save up bigger deposits. Interestingly, the removal of grants is actually helping to stabilise the rental market.

6. Although the end of incentives might seem like a drawback, the situation is more nuanced. Property markets boosted by grants tend to boom unnaturally, only to slow down afterwards. In 2026, Perth’s real estate market will be influenced by:

• More job opportunities.
• People moving to WA.
• Real underlying demand for homes.
• Changes to planning rules and upgrades to infrastructure.

This has resulted in steadier, more sustainable growth instead of sudden jumps. Developers who previously depended on grant-driven demand are now changing their pricing, the types of properties they offer, and their marketing strategies. There’s a rise in medium-density housing and townhouse projects, as buyers compare value more closely. This aligns with Perth’s planning reforms, which promote infill and higher-density living over expansion to the city’s outer edges.

7. By late 2026, Perth’s market will have completely moved on from relying on incentives. Demand will be more evenly balanced between established and developing suburbs. Decisions will be based on lifestyle, affordability, and planning policy, not on grants. Buyers in 2026 will need to approach things differently:

• Assess established homes and new builds without expecting a clear financial benefit either way.
• Consider travel times, local facilities and the long-term value of the property.
• Understand that buying might take longer, but decisions will likely be more strategic.

Tenants will remain a significant part of the market. Some buyers will need more time to save their deposits. Investors are set to benefit from this ongoing rental demand. Removing grants hasn’t weakened the market; it has helped it become more mature.

Conclusion — Approaching Perth’s 2026 Property Market with Assurance

In 2026, lasting reforms—stricter lending standards, enhanced tenant rights, revamped planning rules, mandatory safety measures, tax policy changes, and the end of several purchase grants—are now shaping Perth’s property market more than short-term factors. These nine interconnected changes signal a broader shift, not isolated tweaks. This collection of reforms has created a new environment for homebuyers, tenants, and investors.

• For buyers, decisions now hinge on borrowing capacity, suburb potential, regulatory confidence, and long-term value, rather than reacting to transient incentives.
• For tenants, stronger protections, clearer guidelines, and persistent rental demand are making the market more stable and transparent.
• For investors, success now depends on understanding ownership expenses, tracking local planning shifts, and meeting rising standards for safety, documentation, and management.

Price trends alone no longer capture Perth’s property dynamics. Informed decisions now require grasping zoning policies, compliance obligations, tax regulations, lending standards, and tenancy laws.

Areas like Scarborough, Bayswater, Ellenbrook and Baldivis show how reforms play out differently, stressing the need for deep market knowledge when choosing where to buy. Here, expert advice is crucial. Working with an expert such as Bargoti Real Estate means clients get guidance through the regulations affecting future value and investment returns. In a year of change, having current advice is a real advantage; those who stay informed and seek guidance will be best positioned to succeed.

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