Why Sheds and Workshops Are Topping Perth Wish Lists
Perth buyers have always wanted a decent backyard. In 2026, though, the wish list has changed. Pools, granny flats, vacant land and, most notably, sheds and workshops now dominate what people are searching for when they hunt for their next home.
That is the headline finding from Domain‘s Spring Homebuyer Report, released on 1 October 2026. It suggests Perth buyers are trading beach views for room to work, store, tinker and grow.
For homeowners, that matters. If you own a property with a big shed, a workshop or space to build one, you may be sitting on exactly what the market is chasing right now.
This guide breaks down what the report found, why it is happening, where demand is strongest, and what it could mean for your next move.
What Domain’s Spring Homebuyer Report Found
Domain’s Spring Homebuyer Report looked at the most popular search trends across Australia’s major cities. In Perth, four themes rose to the top this year.
| Perth search trend | What it signals |
|---|---|
| Pools | Backyard lifestyle still matters |
| Granny flats | Demand for dual living and extra income |
| Land | Buyers want bigger parcels |
| Workshops | Room to work, store and tinker |
Domain’s national property editor, Alice Stolz, said the pattern shows Perth buyers moving away from beachfront views. Instead, they want more space to play, work and grow.
She described space as “kind of the ultimate luxury” for buyers right now. In her view, it is not only about pools. Buyers are looking for any way to add volume and usability to their block or their home.
Land and dual living have also climbed the search rankings over the past year. In other words, more Perth buyers are searching for properties that can do more than one job.
Space Is the New Luxury
Why would a shed outrank a sea view? The answer comes down to money and flexibility.
Perth has experienced enormous price growth in recent years. Domain’s editor described the surge as huge, and anyone who has tried to buy lately will know how it feels.
When prices climb faster than budgets, buyers get creative. If they cannot stretch much further on price, they look for extra value inside the parcel of land they are buying.
A large shed can store tools, caravans, boats and hobby equipment. A workshop can host a trade, a side business or a weekend project. A bigger block can fit all of that, plus a pool and a granny flat.
That is the logic behind the shift. A beach view is lovely, but it does not earn income, house the family, or hold the ute and the trailer.
What buyers are really searching for
The report points to a broader theme. Buyers want to squeeze more function out of every square metre. Common wish-list items include:
- A large shed or workshop for storage and hobbies
- A pool for family life at home
- A granny flat or second dwelling for extended family or rental income
- A bigger block with room to expand over time
Kalamunda and Mundaring: Where Demand Is Hottest
The search trends line up with the parts of Perth that are most in demand. According to the report, Mundaring and Kalamunda lead the way in 2026.
A Kalamunda sales agent said sheds and workshops have topped the must-have list for buyers in the area. Many people want shedding and storage space, and the larger blocks in the Hills make that possible.
The agent also described a big demographic shift. Many of the people who built homes in Kalamunda and Mundaring in the 1970s and 1980s are now moving on. Younger buyers are moving in.
Those buyers see strong value. A large block with a substantial home can cost about the same as a much smaller home on a small block closer to the city.
On a 1,000 or 2,000 square metre block, the possibilities multiply. Owners can fit a granny flat, a shed, a pool and a lifestyle that suits the family.
Kalamunda and Mundaring at a glance
Here is how the two suburbs look on REIWA’s current suburb pages.
| Suburb | Median house price | Annual growth rate | Median monthly mortgage repayment |
|---|---|---|---|
| Kalamunda | $1,115,000 | 25.3% | $2,167 |
| Mundaring | $1,020,000 | 13.5% | $2,000 |
Figures from REIWA suburb pages at the time of writing. Median prices move regularly, so check REIWA for the latest numbers.
Recent Kalamunda listings tell a similar story. Four-bedroom, two-bathroom homes in the suburb have been advertised from roughly $1.26 million to $1.4 million. One of those homes offers five parking spaces, a feature that suits buyers with vehicles, trailers and workshop gear.
Those prices are not cheap. They do show why buyers are focused on getting every possible use out of the land they pay for.
Granny Flats and Multi-Generational Living
Alongside sheds and workshops, another trend is quietly gaining ground. Multi-generational living is on the rise in Perth.
The Kalamunda agent was careful not to overstate it. He said demand is growing, but from an almost zero base, and the trend is only just starting.
Even so, he has noticed a pattern. On a couple of occasions, buyers have purchased a home with a plan to add an ancillary dwelling. Others have sold their property so they can move in with a child or an older parent.
This helps explain the rise in granny flat and dual living searches. Families are looking for ways to stay close without living on top of each other.
A single block with a main house, a granny flat and a big shed can suit a grandparent, an adult child, or a family business all at once.
Why the trend suits a high-price market
When a single home is expensive, sharing the cost across generations can make ownership more achievable. A second dwelling also gives families flexibility as their needs change.
It could house a parent today, a teenager in a few years, and a tenant later on. That adaptability is part of the appeal.
How Sheds and Workshops Help First Home Buyers
First home buyers face the toughest affordability challenge. Many are scrimping and saving for a deposit while prices keep climbing.
According to Domain’s editor, seeing granny flats, land, workshops and sheds on the search list speaks to those affordability pressures. Buyers want more flexibility from whatever they can afford to buy.
She noted that first home buyers often become very creative. A property with a compliant granny flat, shed or workshop may let them think about renting out the extra space to bring in income on the side.
That is a smart way to look at it. A buyer who can offset part of the mortgage with rent is in a stronger position than one who cannot.
A word of caution on compliance
The key word is “compliant”. Not every shed or workshop can legally be rented out as a home. Buyers should check what has been approved on the property before they sign a contract.
If a structure was built without approvals, it can create headaches later. A building permit or council approval may be needed, and unapproved work can be costly to fix.
It pays to ask questions early and to seek advice from your local council or a qualified professional.
What WA’s Granny Flat Rules Mean for You
Western Australia has also made it easier to build a granny flat in recent years. Changes to the state’s Residential Design Codes took effect in 2024.
Under the amended rules, compliant granny flats of up to 70 square metres on residential land no longer need planning approval. The old minimum lot size of 350 square metres for these dwellings was scrapped.
| Rule | What it means |
|---|---|
| Maximum size | 70 square metres |
| Planning approval | Not required if the granny flat is compliant |
| Minimum lot size | 350 square metre rule removed |
| Setbacks | Still must be met |
| Building permit | Still required |
Homeowners must still meet setback requirements and obtain a building permit. Rules can also vary by zone and local government, and rural zones are treated differently.
Always confirm the details with your local council before you start planning. This article is general information only and not planning advice.
Why the Humble Pool Is Still Number One
For all the excitement about extra space, one old favourite still leads the pack. Across almost every Australian city, a pool came out on top of the search list. Canberra was the only exception.
Domain’s editor said that result shows how much Australians value their homes as a sanctuary. People like to live in a bubble at home, and a backyard big enough for a pool still matters.
In Perth, that preference sits comfortably alongside the interest in space. A larger block can hold a pool, a shed and a granny flat together.
This is why land and lifestyle blocks continue to attract so much attention. The more room a property has, the more of these wish-list items it can fit.
Perth’s Housing Supply Picture
There is one more detail from the report worth noting. Between June and August, Perth was the only major city to record annual growth in both new housing supply and new unit supply.
That is encouraging news for buyers who are worried about limited choice. More supply can help ease pressure over time.
It does not change the appeal of land and space, however. Many buyers still prefer a large block with a shed and a backyard over a smaller, more compact home.
What This Means for Sellers and Buyers
The shift towards space has practical consequences on both sides of the market.
If you are selling
If your property has a large shed, a workshop, a pool, a granny flat or room to add one, make sure those features are front and centre in your marketing. Good photos of the shed interior, power supply, ceiling height and access can make a real difference.
Gather any approvals and permits too. Buyers who see sheds and workshops with paperwork in order will feel far more confident making an offer.
Think about the buyer’s possible uses as well. A workshop might suit a tradesperson, a hobbyist or someone working from home. A granny flat might suit a multi-generational family or an investor.
If you are buying
Decide early what you actually need. Do you want a place to store a boat, run a business, or house a parent? The answer will help you target the right suburbs and block sizes.
Check zoning, approvals and any restrictions before you commit. Look closely at power, drainage, access and the condition of existing structures.
Compare the price of a bigger block further out with a smaller home closer to the city. As the agent in Kalamunda pointed out, the value equation can look very different once you factor in land and usable space.
Quick checklist for buyers
| Question to ask | Why it matters |
|---|---|
| Are the shed and workshop approved? | Unapproved structures can cause problems later |
| Is there power and good access? | Affects day-to-day usability |
| Could a granny flat fit on the block? | Adds flexibility and potential income |
| What are the setbacks and zoning rules? | Determines what you can build |
| Is the block size right for your plans? | Space is the main driver of value |
Frequently Asked Questions
Why are Perth buyers searching for sheds and workshops?
Prices have climbed quickly, so buyers are looking for extra value from the land they buy. Sheds and workshops offer storage, work space and, if compliant, potential income.
Which Perth suburbs have the strongest demand for space?
According to Domain’s report, Mundaring and Kalamunda lead the way in 2026. Both offer larger blocks and relatively strong value compared with smaller blocks closer to the city.
Can I rent out a granny flat in WA?
Compliant ancillary dwellings can generally be rented out separately. Rules vary by property and council, so check your local requirements first.
Do I need approval for a granny flat in Western Australia?
Compliant granny flats of up to 70 square metres no longer need planning approval, but a building permit and setback compliance are still required.
Thinking of Buying or Selling a Property With Space?
If you are selling a home with a big shed or a workshop, now could be a smart time to find out what buyers will pay for it. Holdsworth Real Estate can provide a current appraisal that reflects what Perth buyers are searching for right now.
Looking to buy? We can help you find a property with sheds and workshops, room for a granny flat, or the block size your plans need. Contact the Holdsworth Real Estate team today for a chat.
