Perth’s Median House Price Passes $1.08M Amid Tight Supply
Perth’s median house price is now above $1.08 million. It jumped 9.9% in the last quarter of 2025. That’s a big leap, the strongest in twenty years. In the Perth housing market, prices have been rising faster than wages, and affordability is under pressure. On average, Perth households now spend 39.5% of their income on mortgage repayments. We at D’MANSHA see this squeeze on affordability driving tough choices for buyers.
Key Market Stats
- Median house price: $1,087,762 (up 9.9% in Q4 2025).
- 5-year growth: ~91% from 2020 to 2025.
- Suburbs doubled: Over 50 Perth suburbs saw prices double in 5 years. Top growth suburb: Orelia (+154%).
- Entry-level homes: Prices up 74.3% since 2019 (about +$275k).
- Listings: Perth has very few houses for sale. Active listings are 42% below the 5-year average.
- Mortgage stress: Buyers now pay about 39.5% of their income on a median mortgage.
- Value gap: Perth houses cost nearly the same as Melbourne’s now – only 2.1% cheaper (down from 42% cheaper in 2019).
Supply shortage and negotiations
Perth has a chronic housing shortage. There aren’t enough detached houses available, and migration is adding to demand. With listings at record lows, buyers often face fierce competition. As a buyer’s agent, we know negotiation strategy matters more than ever. Getting finance pre-approved, being ready to move quickly, and working with us for off-market opportunities can make the difference in securing a home.
Where to look: suburbs and property types
Growth hasn’t been uniform, which can benefit savvy buyers. Some suburbs have shot up in value (like Orelia), while others remain relatively affordable. This non-uniform growth means there are arbitrage opportunities. Our team analyses data to find suburbs under the radar of fast rises. We encourage considering a wider search area (beyond the inner city) if it means better value and future growth potential.
House-type matters too. So-called investor-grade houses (3+ bedrooms) are currently outperforming many units in Perth’s market. Units did rise in Q4 2025 (7.4% to a median $608,520), but detached houses saw bigger gains and still offer higher rental yields. In this supply squeeze, fewer houses for sale means even stronger competition among buyers of detached homes.
Affordability and rental demand
Rising prices have made home ownership harder, and more people may end up renting. Perth’s rental vacancy rate is just 0.5%, so rents are climbing and tenants are in demand. For someone buying an investment, this means stronger rental returns. For owner-occupiers, it highlights the need to plan carefully – for example, using our mortgage calculators to understand repayments.
Migration and future growth
Western Australia is now Australia’s fastest-growing state, with high interstate and overseas migration. Perth’s lifestyle and job market are attracting new residents, which supports prices in the long run. For buyers, this means values are likely to stay robust. We advise clients to have a clear long-term plan: think about rental demand, employment trends, and growth potential as you choose your property.As your buyers’ agent, we at D’MANSHAare here to help you navigate the new Perth market. You can contact us at +61 406 11 22 44 and book a free consultation. Also, follow us on LinkedIn and Instagram to know current market trends.