Perth has surged into Australia’s “million dollar club”, with its median house price jumping 9.9% in the December quarter to $1,087,762, Domain’s latest House Price Report shows.
The WA capital is now the nation’s sixth city to cross the seven‑figure threshold, following Adelaide’s move above $1 million in April 2025.
Domain president Jason Pellegrino said the result reflects a major shift in the national housing landscape.
“Perth’s entry into the million-dollar club highlights the scale of change underway in Australia’s housing market,” Pellegrino said in a media release. “The city’s strong appeal as a place to live, work, and invest, combined with the state’s economic strength and liveability, has attracted new residents at record pace, making Western Australia the nation’s fastest-growing state.”
The million‑dollar milestone has come with a steep affordability toll, particularly at the bottom end of the market.
Since 2019, entry‑level house prices in Perth have climbed 74.3%, adding about $275,000 to the cost of buying and racing well ahead of wage growth. Perth households now devote 39.5% of their income to servicing a median mortgage, up from 22.3% in 2019.
Homeownership among 30–34‑year‑olds in WA has also fallen – down from 67% for those born between 1947–1951 to 56% today – and is expected to slide further if prices keep rising.
At the same time, demand remains intense in and around the CBD, with Perth City ranked the most searched suburb on reiwa.com for both sales and rentals in 2025 for the second consecutive year, signalling strong interest in higher-density, city-fringe living.
Domain’s chief of research and economics, Nicola Powell, said stretched budgets are increasingly dictating how and where people buy.
“Rapid price growth has pushed homeownership further out of reach for many buyers, forcing tougher trade-offs and longer saving times,” Powell said. “While price growth is expected to moderate, affordability challenges will persist unless housing supply improves.”
Perth’s million‑dollar median caps decades of steady price appreciation, with a sharp acceleration in recent years. The city’s median house price has climbed from $143,394 in 1994 to $528,779 in 2019, before more than doubling to $1,087,762.
More than 50 suburbs have seen house values double in just five years, led by Orelia (up 154%), Parmelia (148%), Coolungup (147.8%), Armadale (146.7%), and Merriwa (136.1%).
Back in 2019, a typical Perth house was 41.5% cheaper than in Melbourne; that discount has narrowed to just 2.1% today, while Perth unit prices now slightly edge those in Melbourne.
Despite the headline‑grabbing median, Powell said Perth remains comparatively attractive on some measures.
“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 timeframes for first-home buyers,” she said.
“Flexibility will be key, whether that means buying further from the CBD, choosing smaller homes, or considering units and townhouses.”
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