New entrant follows Brisbane's addition to the club in 2025
Perth has joined Australia’s “million-dollar club” with the median house price reaching $1,087,762 in the December quarter, according to Domain’s latest House Price Report released Monday.
The Western Australian capital recorded a 9.9% quarterly rise, becoming the sixth Australian capital city to hit the milestone after Adelaide achieved the mark in April 2025.
It is the city city to join the club since Brisbane in July 2025.
Domain president Jason Pellegrino said the milestone highlighted significant changes in Australia’s housing market.
“Perth’s entry into the million-dollar club highlights the scale of change underway in Australia’s housing market,” Pellegrino said. “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 report revealed Perth’s median house price had risen from $143,394 in 1994 to $528,779 in 2019, before more than doubling to its current level.
More than 50 Perth suburbs saw house prices double over the past five years. Orelia led growth at 154%, followed by Parmelia at 148%, Coolungup at 147.8%, Armadale at 146.7%, and Merriwa at 136.1%.
The milestone underscores growing affordability pressures, particularly for first-home buyers. Entry-level house prices in Perth have risen 74.3% since 2019, adding approximately $275,000 to purchasing costs and far outpacing wage growth.
Perth households now spend 39.5% of their income on median mortgage repayments, up from 22.3% in 2019, according to data from the Australian Bureau of Statistics (ABS) and Domain.
Home ownership among 30-34-year-olds in Western Australia has fallen from 67% for those born between 1947–1951 to 56% currently, based on Australian Institute of Health and Welfare analysis of ABS data.
The price gap between Perth and Melbourne has narrowed dramatically. In 2019, Perth was 41.5% cheaper than Melbourne for house purchases, but that gap has shrunk to just 2.1%. Unit prices in Perth now marginally exceed Melbourne levels.
Domain’s chief of research and economics Nicola Powell said affordability pressures increasingly shape buyer behaviour.
“Rapid price growth has pushed home ownership 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.”
Powell noted Perth continues offering relative value compared with other capitals, supported by higher-than-average wages and shorter saving timeframes for first-home buyers.
“Flexibility will be key, whether that means buying further from the CBD, choosing smaller homes, or considering units and townhouses,” she said.
