Perth's property market has crossed a daunting threshold, with the median house price now officially topping one million dollars. This milestone, confirmed by the latest Real Estate Institute of Western Australia (REIWA) data, signals a deepening affordability crisis for those trying to enter the market.
A 'Perfect Storm' Fuels Unprecedented Growth
The figures are stark. The median house price for Perth soared to $1,003,888 in the three months to September, according to REIWA. This represents a significant 4.3 per cent jump from the previous quarter and a staggering 22.1 per cent increase over the past year. The surge hasn't been limited to houses; the overall median selling price for all dwellings, including units, also climbed to a record $920,000.
Experts point to a confluence of factors creating what they describe as a 'perfect storm'. REIWA CEO Cath Hart attributes the sharp rise to a severe imbalance between supply and demand. "We've got strong population growth, very low rental vacancy rates, and not enough housing stock being built," Hart explained. This intense competition is pushing prices to new heights, with many properties selling well above their asking prices.
The First Home Buyer's 'Nightmare' Reality
For first-time buyers, this market shift represents a crushing blow. The dream of home ownership is rapidly slipping further out of reach. The number of suburbs with a median house price under $500,000 has plummeted from 15 to just four in a single year. Affordable entry points are vanishing.
"It's an absolute nightmare for first home buyers," said property analyst and buyer's agent Tom Esplin. He notes that buyers who could have secured a home for around $600,000 a few years ago are now facing prices closer to $800,000 or $900,000 for the same property. This dramatic leap forces many to drastically revise their expectations, look much further from the city, or delay their plans indefinitely.
Suburbs Leading the Charge and Future Predictions
The price growth has been widespread, but some areas have seen particularly explosive increases. Suburbs like Bicton, North Perth, and Wembley have all recorded median price growth exceeding 30 per cent in the past year. Even traditionally more affordable outer-ring suburbs are experiencing strong upward pressure.
Looking ahead, experts see little immediate relief. While interest rate rises may eventually temper buyer enthusiasm, the fundamental issues of housing supply and strong interstate migration into Western Australia are expected to keep the market firm. Cath Hart suggests the price growth rate might moderate, but a major correction is unlikely given the underlying demand. The pressure on the rental market, with vacancy rates remaining near historic lows, continues to funnel more people towards purchasing, sustaining competition.
The breakthrough of the $1 million median house price is more than a symbolic milestone; it is a clear indicator of a market transformed. For Perth's first home buyers, the challenge has never been greater, requiring careful planning, expanded budgets, and tempered expectations in a landscape reshaped by a sustained 'perfect storm' of economic and demographic forces.
