It’s official — Perth’s property market has crossed a psychological milestone that few thought possible just a few years ago. The city’s median house price has now climbed above $1 million, signalling a red-hot housing market that shows little sign of cooling.
Perth’s Property Boom Hits New Heights
Fresh figures from CoreLogic show that Perth’s median house price surged past $1 million for the first time, making it one of the fastest-growing capital city markets in Australia. The latest data reflects a staggering rise of more than 16% over the past year, driven by fierce competition, limited supply, and strong demand from both locals and interstate buyers.
Property analysts say Perth’s affordability advantage compared to Sydney and Melbourne has drawn investors and buyers westward, pushing prices beyond previous expectations, reports ABC News. What began as a steady recovery after years of flat growth has now become a full-blown property boom.
Tight Supply and Strong Demand
Behind the price surge is a simple story: too few homes and too many buyers. Housing supply remains critically low, with listings down by around 30% compared to historical averages. New construction has also struggled to keep up, hit by material shortages, high labour costs, and planning delays.
At the same time, population growth in Western Australia has surged, thanks to strong migration and job opportunities in the mining and construction sectors. The result is intense competition for available homes — especially in desirable suburbs like Cottesloe, Mount Lawley, and Fremantle.
Real estate agents report open homes attracting dozens of buyers and properties selling well above asking prices within days. For many first-home buyers, Perth’s once-accessible housing market now feels out of reach.
Apartments and Outer Suburbs Next in Line
While house prices dominate headlines, apartment values are also climbing. Analysts say more buyers are now looking toward smaller dwellings or fringe suburbs as affordability tightens. Suburbs south and east of the city — like Baldivis, Byford, and Ellenbrook — are seeing renewed interest from families priced out of inner-city areas.
Developers warn that without faster land releases and construction incentives, supply constraints could persist well into 2027, keeping prices elevated.
What Comes Next for Perth’s Property Market
Economists are divided on whether Perth’s property surge can continue at the same pace. Some believe the momentum will slow as interest rates remain high and affordability worsens. Others argue that the combination of population growth, tight supply, and investor confidence will keep upward pressure on prices for months to come.
For now, the milestone has cemented Perth’s place among Australia’s most expensive housing markets — a far cry from the bargain reputation it once held.
