Perth's Property Market Surpasses $1 Million Median
Multiple property market reports confirm that Perth's median dwelling price has now exceeded $1 million. The city's market saw significant growth in the final quarter of 2025, with analysts attributing the surge to record population growth and critically low housing supply, while cautioning that the current pace may be unsustainable.
The price gap between Perth and larger eastern capitals has narrowed considerably.
Market Performance: A Record Quarter
While specific figures vary by methodology, all major reports agree on the milestone.
- Domain reported a 9.9% increase in the final quarter of 2025, bringing the median house price to $1,087,762.
- CoreLogic reported a 7.3% increase in the last quarter, a figure significantly above the national average of 2.1%.
- The Real Estate Institute of WA (REIWA) reported a median house sale price of $840,000 in December, its highest recorded figure, citing different data collection methods.
Over a five-year period, Perth property prices have increased by 91%, according to CoreLogic. More than 50 Perth suburbs saw house prices double in that time, with Orelia recording the highest growth at 154%.
Drivers of Price Growth
Analysts cite two primary, interconnected factors for the dramatic price increases.
1. Record Population Growth
The Australian Bureau of Statistics reported Perth's population grew by 58,100 people (2.4%) in the 2024-25 year, the highest rate among Australian capitals. This growth consisted of 37,289 from net overseas migration, 8,211 from net interstate migration, and 12,588 from natural increase. Perth and Brisbane were the only capitals to record net interstate migration gains.
2. Critically Low Housing Supply
Advertised stock levels in Perth are approximately 40% below the five-year average. REIWA data showed a record low of 1,881 listings for sale across Perth at the end of December. Perth's vacancy rate is the second-lowest nationally, contributing to annual rental price increases of 7.1% for units and 6.7% for houses.
Affordability and Market Context
The rapid price growth has sharply impacted housing affordability.
- Domain reports Perth households now allocate 39.5% of their income to a median mortgage, up from 22.3% in 2019.
- Entry-level home prices have risen 74.3% since 2019, adding approximately $275,000 to the purchase cost.
- The price gap between Perth and Melbourne has narrowed from 41.5% in 2019 to just 2.1%.
Despite reaching the $1 million milestone, analysts note Perth offers relative value compared to Sydney ($1.29 million) and Brisbane ($1.1 million).
Property analyst Gavin Hegney stated that while fewer properties offer good value, such opportunities still exist as market conditions do not affect all suburbs uniformly.
Regional Trends and National Comparisons
Regional Western Australia also recorded strong capital gains, with values up 6.2% over the quarter. Bunbury saw an 8.4% increase through the March quarter, leading to a 22.2% rise over the past 12 months.
In contrast, larger eastern capitals like Melbourne and Sydney have observed slight declines in dwelling prices, attributed to higher interest rates, falling auction clearance rates, and an increase in advertised supply.
Outlook and Response
Analysts, including CoreLogic's Tim Lawless, have described Perth's current growth rate as unsustainable. Domain's Dr. Nicola Powell anticipates price growth may moderate but expects affordability issues to persist unless housing supply improves.
WA Premier Roger Cook indicated the state government is working to increase housing supply to exert downward pressure on house prices.
Dr. Powell suggested some affordable properties remain, recommending buyer flexibility in location or property type.