Five years ago, a weatherboard cottage in Maylands sold for $620,000. Last month, the identical house next door fetched $1.12 million—same floor plan, same cracked driveway. No fuss. No fanfare. Just a quiet sale, $500k higher. That’s Perth in 2025: a city quietly rewriting its own price list.
The numbers aren’t shouting—but they’re strong. REIWA’s latest figures show the median house price at $815,000, up from $720,000 a year ago. Units, long the overlooked sibling, have climbed to $565,000. Domain’s take puts the upper quartile past $981,000. That elusive million-dollar median? Most analysts now tip it to land sometime in early 2026.
Cotality’s November index shows Perth led the country for price growth in October, jumping 1.9% in just one month—the fastest of all capital cities.
So, what’s driving this climb? Three forces, none of them loud—but all of them relentless.
1. People keep coming
WA’s population grew between 2.3% and 2.5% over the past year—the fastest in the country. Net overseas migration added tens of thousands. Perth is now nudging 2.2 million residents, with growth showing no sign of slowing.
2. Listings are vanishing
Active listings are down 40.6% year-on-year and 45% below the five-year average. Construction isn’t filling the gap—new builds remain at decade-low levels, and delivery is slow.
3. Borrowing’s got a boost
The Reserve Bank cut rates earlier this year, giving buyers more borrowing power. Then came the September quarter inflation read—released 25 October—coming in at 3.2%, higher than expected. That result has now paused further rate cuts, at least for the short term.
What’s the result? A market that’s moving up in straight lines.
In the week ending 26 October, 903 properties changed hands. That’s demand running triple the pace of supply. Median days on market for houses? Under 10. Some are selling in three days—or even on the same day they’re listed.
Suburbs are telling their own stories.
Bateman, a peaceful pocket south of the river, now trades at $1.3 million—a sharp rise over two years, driven by strong schools and laid-back streets. Just a short drive north, Ardross is commanding $1.76 million—luring buyers with leafy streets, top schooling and access to cafes and parks.
Further up the coast, Butler sits at the $730,000 mark. As nearby coastal suburbs climb out of reach, demand is creeping north. Butler’s relative affordability, limited new land supply and beach proximity are combining to lift its ceiling.
It’s not just prestige homes setting records. The biggest price growth has come from Perth’s more affordable homes. In the sub-$800,000 range, surging demand and tight supply have pushed prices up by 64% over the past three years. That compares with a still-strong 45% rise in the over-$800,000 bracket. In places like Rockingham, homes that once sold for around $500,000 are now fetching $800,000. Different price points, same pattern: more buyers, fewer homes, and serious upward pressure on prices.
Cotality’s latest index confirms it’s the middle and lower segments of the market seeing the fastest price growth—driven by affordability, incentives and sheer buyer volume.
Investors are watching the rental data too. Perth’s median weekly rent is now $695. It may edge higher, but after months of sharp increases, rent growth has slowed. Many tenants are nearing their limit. Yields remain strong—between 4.2% and 4.8%—and vacancy rates are still under 1%.
Yet none of this feels speculative. The freeways are full, the cafes are humming, and cranes are working the skyline. The state government’s plans for new housing zones are on the table—but approvals are outpacing actual construction. The supply crunch isn’t going away just yet.
So where is this headed?
REIWA, Westpac, ANZ and PropTrack all forecast strong growth for 2025. But here’s the thing: Perth has already exceeded the 10% rise they predicted for the year. And with listings still low, many are now pointing to another 8–12% in 2026. A taper may come—but not yet. If supply catches up, it’ll be sometime after 2028.
By then, a million-dollar median may not feel aspirational. It could just be the new baseline.
For buyers, timing is everything. Wait a year, and your budget might buy 10% less house. Act too quickly, and you risk paying above the odds. The smart path? Be ready—and move fast.
That means sorting your finance early—ideally to the point where you’re able to make a cash-equivalent offer. Then, work with a professional who’s buying in these conditions every day — and can help you avoid costly missteps.
Perth’s market isn’t shouting. It’s just shifting—quietly, confidently—deal by deal, suburb by suburb. And if you’re planning to join it, the message from the data is clear: don’t wait too long.
Ready to make your move?
With listings tight and prices climbing, the right strategy can make all the difference. Whether you’re buying a home or building an investment portfolio, we’ll help you act fast and buy smart — without the stress or guesswork.
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Established in 2004, Property Wizards works with local, interstate and overseas home and investment buyers seeking to buy property in the greater Perth metropolitan area. Property Wizards takes away the stress of buying property and saves you time and money. Regardless of market conditions, our research, knowledge, and access to silent sales means we find and negotiate properties with potential to outperform the market in capital growth and rental returns. Importantly, we provide home buyers and property investors with the same level of representation that property sellers have benefited from for years.
