Perth's median house price has exceeded the $1 million mark, according to a report by real estate listing company Domain. Prices increased by 9.9 percent in the final quarter of 2025, reaching an average of $1,087,762.The report also indicated that Perth households now allocate 39.5 percent of their income to a median mortgage, an increase from 22.3 percent in 2019.
Market Analysis
Dr. Nicola Powell, Domain's chief of research and economics, attributed the lack of affordability to a shortage of homes. Dr. Powell stated that rapid price growth has made home ownership more challenging for many buyers, necessitating tougher trade-offs and longer saving periods. She anticipates that while price growth may moderate, affordability issues will persist unless housing supply improves.
- Over 50 Perth suburbs saw house prices double in the past five years.
- Orelia, a southern suburb, recorded the highest growth at 154 percent.
Dr. Powell noted that despite reaching the $1 million milestone, Perth offers relative value compared to other Australian capitals, supported by higher wages and shorter saving times for first-home buyers.
City Price Gap and First Home Buyers
The price gap between Perth and larger cities like Melbourne has narrowed. In 2019, Perth homes cost 41.5 percent less than Melbourne; this difference has now decreased to 2.1 percent.
The Domain report found that first-home buyers face difficulties entering the market, with entry-level home prices rising 74.3 percent since 2019, adding approximately $275,000 to the purchase cost. Home ownership has declined, and this trend is expected to continue as property prices increase.
Dr. Powell suggested that some affordable properties remain available, recommending flexibility in location, home size, or considering units and townhouses.
Contributing Factors and Discrepancies
Jason Pellegrino, Domain president, cited Perth's appeal as a place to live, work, and invest, along with Western Australia's economic strength and livability, as factors contributing to record population growth and rising property prices.
It was noted that Domain's data on Perth's median house price differs from the Real Estate Institute of WA's (REIWA) figures due to variations in methodology. REIWA reported Perth's median house sale price at $840,000 in December, its highest recorded figure. REIWA data also showed a record low of 1,881 listings for sale across Perth at the end of December.
Property analyst and valuer Gavin Hegney stated that while fewer properties offer good value for money, such properties still exist, as market booms do not affect all suburbs uniformly. He noted the current market has less than 2,000 properties available.
WA Premier Roger Cook indicated that the government is working to increase housing supply to exert downward pressure on house prices.