Perth's housing market is on fire! 🏠🔥
New data reveals a shocking trend: the cost of building a home in Western Australia has skyrocketed, doubling in just six years. Yes, you read that right—building a house now costs twice as much as it did before the COVID-19 pandemic.
The Australian Bureau of Statistics' latest figures show that as of December 2025, the price tag for a new home in WA is a staggering 95.6% higher than in 2019. This means a house that would've cost $300,000 to build back then would now set you back a whopping $586,800. And this is just the construction cost—land prices are a whole other story!
But here's where it gets even more intriguing: the median house price in 126 Perth suburbs has now surpassed the $1 million mark. That's right, over a hundred suburbs have joined the exclusive 'Million Dollar Club'.
The suburb of Samson, located east of Fremantle, is the latest addition, with a remarkable 40.5% growth in median house sale price, reaching $1.25 million. Brentwood, Serpentine, Roleystone, and Maylands also made significant leaps, with annual growth rates of 37.1%, 36.8%, 26.3%, and 23.1%, respectively.
Peppermint Grove remains Perth's priciest suburb, with a median house sale price of $5.1 million at the end of 2025. But the real question is, how long will it hold this title?
REIWA President Suzanne Brown shared her insights: "The Perth property market's strength is evident, with the median house sale price for Greater Perth rising 13.3% in 2025. This follows an impressive 25.0% growth in 2024, when 37 suburbs joined the Million Dollar Club."
She added, "If the current trend continues, we could see the Million Dollar Club welcoming even more suburbs, possibly reaching 150 by the end of 2026."
However, not all suburbs are on the rise. Six suburbs have recently dropped out of the Million Dollar Club, with Karawara, Carmel, and Bickley experiencing a decline in median house sale prices. Mariginiup, Hovea, and Millendon also exited due to a lack of qualifying sales in 2025.
So, what's driving these dramatic price increases? Master Builders Australia Chief Economist Shane Garrett points to the rising cost of building materials, which have increased by 39.4% since 2019. Ceramic products, cement, timber, board, and joinery products have seen the most significant price hikes.
Matt Moran, CEO of Master Builders Western Australia, warns that these price increases, coupled with the existing worker shortage, could hinder efforts to resolve the housing crisis. He emphasizes the need for pragmatic policies to boost the construction workforce and increase land availability.
And this is the part most people miss—the impact of these trends on first-time home buyers and the off-the-plan market. With costs soaring, is the dream of homeownership slipping away for many young Australians? And how will this affect the property market's future?
What are your thoughts on Perth's property market? Are these price increases sustainable, or is a correction on the horizon? Share your insights and predictions in the comments below!
