Perth’s property market is on track to reach a significant milestone, with the median house price in the metropolitan area just shy of the $1 million mark. According to the latest figures from the Domain House Price Report for the September quarter, the median price for a home in Perth rose by 1.6 percent or $15,382, reaching a record high of $981,259.
Dr. Nicola Powell, Chief of Research and Economics at Domain, highlighted that the current price is only $18,741 below the $1 million threshold. She noted, “When I see capital cities breach that million-dollar median for house price, it really is a line in the sand and it is such a milestone for the housing market.” Powell expects that Perth will breach this mark before the end of the year.
Despite the upward trend, the growth rate for house prices has slowed. The quarterly increase is only one-third of the pace observed in the previous quarter and has dropped by the same margin compared to the same quarter last year. Annual gains in Perth’s housing market have also decelerated to 10 percent, the slowest growth rate in over two years.
Powell stated that a modest increase of just 1.9 percent in the next quarter would be sufficient for the median house price to reach the coveted $1 million mark. She anticipates that the Reserve Bank of Australia (RBA) will implement a rate cut by November and that the expansion of the Home Guarantee Scheme will invigorate demand in the more affordable segments of the market.
“The expansion of the Home Guarantee Scheme has created a demand trigger,” Powell explained. “While we expect prices to slow, even if we see similar rates of growth as we have seen this quarter, we are going to get to $1 million.”
In a related development, property analysts at Cotality reported that 19 additional suburbs in Perth have entered the “million-dollar club,” with new entries including Bayswater, Maylands, Noranda, Landsdale, and Padbury. The number of regional areas with median prices above $1 million doubled from six to twelve, with Yallingup reaching a median of $2 million.
Cotality economist Kaytlin Ezzy expressed concerns that rising prices would exacerbate issues related to affordability and equity, particularly for first-time homebuyers. Despite signs of a slowdown in the Western Australian housing market, the latest Domain statistics indicate sustained growth, especially in the demand for units.
“This is the 12th consecutive quarter of growth we have seen for Perth house prices, which is the longest consecutive run of gains since the 2000 to 2007 period,” Powell noted. Similarly, unit prices have seen a continuous rise, marking the 10th consecutive gain for unit prices.
Perth unit prices surged by 4 percent or $21,351 over the quarter, reaching a record median of $560,471. Powell attributed this trend to changing affordability dynamics, which have prompted many first homebuyers to shift their focus toward units.
“Investors have been significant players in WA’s housing market, with investment activity well above the decade average,” she added. “They tend to favour units and apartments as they offer higher yields.”
In regional Western Australia, median house prices now stand at $620,000, marking the 13th consecutive quarter of growth in this sector. Powell highlighted the popularity of the South West region among tree-changers, lifestyle seekers, and retirees, as a result of the price changes coming out of Perth.
These developments reflect a dynamic and evolving property market in Perth, which is expected to continue attracting attention as it approaches the $1 million median price threshold.
