Developments

Perth’s property market in 2026 is no longer driven by momentum alone. It is shaped by structural supply constraints, sustained demand and a decisive shift in how investors and families approach long-term wealth creation. According to Summit Developments’ Senior Development Consultants — Quentin Lau, Ewan McConnell and Adrian Johnson — the market has entered a more disciplined phase, where strategy outweighs speculation.

“This is not a market where instinct alone will carry you,” McConnell explains. “It rewards feasibility, modelling and informed decision-making.”

A Structural Housing Shortfall

Western Australia continues to face an annual shortfall of over 10,000 dwellings, compounded by labour shortages and limited construction capacity. While some expect supply to catch up, structural constraints suggest pressure will remain embedded in the market for years.

The shortage is particularly acute in greenfield estates. Land agents are increasingly screening buyers, asking whether purchases are for owner occupiers or investors, with investor allocations reportedly capped at just two to three per cent of available stock.

“This shortage highlights the scarcity of available land in WA,” McConnell notes. “It’s not just a timing issue — opportunities to secure the right parcel of land are increasingly rare.”

Notably, greenfield land — when measured on a square metre basis — is often comparable to infill land. The assumption that fringe estates automatically provide cheaper entry points no longer holds true across much of Perth.

The Rise of Infill and Staged Development

As greenfield supply tightens, attention is turning to infill redevelopment and staged development within established suburbs.

Blocks within 20 kilometres of the CBD are being reassessed for subdivision, staged construction and higher-density outcomes. Properties once considered static assets are increasingly viewed as opportunities to unlock value over time.

“In the current environment, every infill or staged development we’re seeing works,” Lau notes. “It allows landowners to manage risk, unlock equity gradually and respond to market conditions while maximising value.”

Suburbs previously perceived as secondary investment locations are being repositioned as high-potential development zones. Landowners are recognising the opportunity within assets they already hold.

For many, the question is no longer whether to develop — but how to structure it strategically, whether through full redevelopment or staged projects.

Built-to-Rent and Long-Term Thinking

Another defining shift is the strength of the built-to-rent and built-to-hold model.

With rental demand elevated and vacancy rates tight, investors are increasingly designing projects to retain rather than sell.

“You’ve got strong rental returns, high demand and solid capital growth expectations over the next five to seven years,” Lau highlights. Short-term flipping strategies are giving way to longer-hold positions focused on yield stability and portfolio resilience.

Building for the Next Generation

Summit Developments is also seeing a rise in multi-generational planning.

“We’re working with families who have held blocks for years and are now developing them for their children,” McConnell observes. Development is increasingly being used as a tool for legacy planning and housing security. Rather than selling into the market, many families are creating dwellings that provide flexibility — whether for rental income, adult children or staged ownership transitions.

This reflects a broader shift away from transactional investing toward strategic asset management.

Equity as a Growth Lever

Strong capital growth in recent years has created substantial equity across Perth households. When structured correctly, that equity can fund subdivisions, secondary dwellings or staged redevelopment projects.

“Many property owners underestimate the opportunity sitting within their existing assets,” McConnell notes. “Equity can accelerate portfolio growth when approached strategically.” Accessing that growth, however, requires disciplined feasibility assessment and specialist advice.

Avoiding Common Pitfalls

Despite favourable fundamentals, recurring mistakes remain. The most common include allowing emotion to override feasibility, chasing short-term gains instead of longer-term outcomes, and focusing solely on upfront build price without understanding full project costs and exclusions.

“Property development is about economics, not emotion,” Lau emphasises. “Decisions must be driven by modelling and long-term forecasting.”

They also caution against fragmented advice and assuming all builders or consultants offer equivalent expertise.

A Rare Market Window

Summit’s consultants believe Perth is experiencing a rare alignment of favourable fundamentals: strong demand, limited land availability, tight rental conditions and ongoing equity growth.

“This could be a once-in-a-lifetime opportunity to take charge, grow our investment portfolios and strengthen our retirement income. There’s never been a better time,” Lau remarks.

As confidence in volatile asset classes fluctuates, investors are returning to residential property as a stable, long-term wealth vehicle. Perth’s development landscape is now shaped by strategic infill and staged redevelopment, built-to-rent structures, equity-led growth and disciplined planning.

With land supply tightening and development pathways becoming more complex, strategic advice has never been more important. Whether through subdivision, staged redevelopment or medium-density infill, the right structure can make the difference between a missed opportunity and a high-performing asset.

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