Nearly half of Perth and Peel suburbs now have a median house price of $1 million or more, according to data from real estate analytics firm Cotality. The data shows 197 out of 400 suburbs in the region have reached the million-dollar milestone, while eight suburbs have achieved it for units.
New entrants to the million-dollar club include many classic suburban areas developed between the 1950s and 1990s, such as Wanneroo, Morley, Belmont, and Joondalup. Several newer master-planned suburbs like Wandi, Piara Waters, and Tapping have also joined the list, with median prices between $1 million and $1.15 million.
The surge in values has pushed the total value of Western Australia's property market above $1 trillion, according to Cotality. The firm noted that a 10% rise in values creates $100 billion in wealth for West Australians, while a similar drop erases it, making house price movements critical for the state's economy.
By the end of last year, more than one in three houses (33.9%) and more than one in ten units (10.9%) sold for $1 million or more, up sharply from 2021 when only 12.9% of houses and 4.4% of units reached that threshold. Over the past five years, median house prices have grown 92.9% and unit prices 87.71%.
However, analysts are divided on the outlook. Property expert Gavin Hegney predicts prices will fall within months or early next year due to rising interest rates and tax changes that may deter investors. He expects a short-lived drop, with prices recovering in three years. HSBC chief economist Paul Bloxham forecasts a 4% to 8% decline in 2027, driven by an exodus of east coast investors.
