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Perth House Prices Surpass $1 Million

  //house-home.news-articles.net/content/2026/01/18/perth-house-prices-surpass-1-million.html
  Published in House and Home on Sunday, January 18th 2026 at 7:14 GMT by The West Australian

Perth, Western Australia - January 18th, 2026 - The dream of homeownership in Perth has taken a significant blow as the city's median house price has officially surpassed the $1 million mark. This milestone, confirmed by the Real Estate Institute of Western Australia (REIWA), represents a dramatic shift in the market, leaving first-home buyers struggling and prompting widespread concern about the accessibility of housing.

According to the latest REIWA data, the median house price now stands at $1,013,834. This figure marks a staggering increase from just over $500,000 a mere two years ago, showcasing the rapid acceleration of Perth's property market. The situation has been characterized by industry experts as a 'perfect storm' of economic and logistical factors, creating an exceptionally challenging environment for aspiring homeowners.

The Perfect Storm: A Complex Web of Contributing Factors

The current crisis isn't the result of a single issue but rather a confluence of events that have intensified over the past few years. Initially, border closures implemented during the global pandemic triggered a significant imbalance in the market. Restrictions on international migration limited the supply of available properties, while simultaneously sparking increased demand as individuals sought larger homes and space for remote work. This initial surge in interest laid the foundation for the current inflated prices.

However, the situation has been further exacerbated by rapidly escalating construction costs and a persistent shortage of skilled tradespeople. The pandemic exposed vulnerabilities in global supply chains, leading to significant price increases for building materials. Simultaneously, the construction industry continues to grapple with a lack of qualified workers, hindering the ability to build new homes at a pace sufficient to meet demand. This constriction of supply has dramatically amplified the pressure on existing properties.

Intense Competition and Limited Options

Damien Sharpe, President of REIWA, paints a stark picture of the current market conditions, describing it as "extremely tight." Prospective buyers are now facing intense competition, with properties frequently selling within days and attracting multiple offers. This isn't simply a competition among first-home buyers; investors and established homeowners are also vying for the limited available stock, further narrowing the window of opportunity for those entering the market for the first time.

"The reality is harsh," explains Simon Press, Head of Research at Propertyology. "First-time buyers are facing a gauntlet of challenges that were simply unimaginable just a few years ago."

Is a Peak in Sight, or More to Come?

The question on everyone's mind is whether this rapid price growth can be sustained. While some analysts believe the market may be approaching a peak, others remain cautiously pessimistic, suggesting that prices could continue to climb in the short to medium term. Press cautions against expecting an imminent correction, emphasizing the ongoing tightness of the market and the resilience of buyer demand.

Economic Implications and Calls for Government Intervention

The escalating property prices aren't confined to the real estate sector; they are exerting pressure on the broader Western Australian economy. Economists are expressing concerns that the unsustainable price growth could contribute to a slowdown in overall economic growth and potentially impact other sectors.

Recognizing the severity of the situation, Sharpe is urging the government to take proactive measures. He stresses the urgent need for increased housing supply, particularly affordable housing options. "We need to build more houses, and we need to make sure they are affordable," Sharpe stated. Without intervention, he warns, Perth risks developing a 'two-tiered housing market' where homeownership becomes a privilege reserved for the wealthy, effectively excluding a significant portion of the population from the prospect of owning a home.

Looking Ahead:

The future of Perth's housing market remains uncertain. However, one thing is clear: the current situation demands immediate and concerted action to address the supply shortage, ease the burden on first-home buyers, and prevent a widening gap between the haves and have-nots in the Western Australian housing landscape.