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<\/p>\nPerth’s median house price has broken through the $1 million mark, with prices jumping almost 10 per cent in the final three months of 2025.<\/p>\n
Real estate listing company Domain has found the cost to buy a home in the city increased by 9.9 per cent in the last quarter of 2025, to an average price of $1,087,762.<\/p>\n
Its report found Perth households now spend 39.5 per cent of their income on a median mortgage, up from 22.3 per cent in 2019.<\/p>\n
Domain’s chief of research and economics, Dr Nicola Powell said a shortage of homes was contributing to the lack of affordability.<\/p>\n
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House prices in more than 50 Perth suburbs doubled over the past five years.\u00a0 (ABC News: Ian Cutmore)<\/p>\n
“Rapid price growth has pushed home ownership further out of reach for many buyers, forcing tougher trade-offs and longer saving times,” Dr Powell said.<\/p>\n
“While price growth is expected to moderate, affordability challenges will persist unless housing supply improves.”<\/p>\n
House prices in more than 50 Perth suburbs doubled over the past five years, with the southern suburb of Orelia recording the highest growth, up 154 per cent.<\/p>\n
Dr Powell said other Australian capitals were even less affordable.<\/p>\n
“Despite reaching the $1 million milestone, Perth continues to offer relative value compared to other capitals, supported by higher-than-average wages and shorter saving time-frames for first-home buyers,” she said.<\/p>\n
City price gap narrows<\/p>\n
Perth housing prices are rapidly catching up to larger cities such as Melbourne.<\/p>\n
In 2019, a home in Perth cost 41.5 per cent less than Melbourne, but the latest data shows that gap has narrowed to just 2.1 per cent.<\/p>\n
Inside Melbourne’s anomalous housing market<\/a><\/p>\n Property analysts say a mix of economic conditions, policy settings and demographic shifts are among the reasons for the city’s subdued dwelling price growth in the past five years.<\/p>\n The Domain report found first home buyers were struggling to get into the market, with the price of an entry-level home rising 74.3 per cent since 2019, adding around $275,000 to the purchase price.<\/p>\n Home ownership has also fallen, and Domain says the number of home-owners is expected to decline further as property prices increase.<\/p>\n Dr Powell said there were still some affordable properties to be found on the market.<\/p>\n “Flexibility will be key, whether that means buying further from the CBD, choosing smaller homes, or considering units and townhouses.”<\/p>\n