Key Takeaways:
Perth house prices are tracking toward a $1 million median, reshaping the market for buyers
First-home buyers face tougher competition, higher entry prices, and less room to wait
Waiting doesn’t always mean saving in rising markets, it can mean paying more
Let’s not sugarcoat it.
Perth is knocking on the door of a $1 million median house price and for a lot of people, especially first-home buyers, that door feels like it’s closing fast.
Industry leaders are now openly saying Perth could cross the $1M mark by 2026. Not in some distant future. Not one day. Soon.
So what’s really going on? And more importantly, what should you actually do about it?
The Perth property market isn’t cooling, it’s maturing
For years, Perth was the “affordable capital city.” The underdog. The one buyers from over east ignored.
That era is officially over.
Prices have surged fast, driven by strong demand, low housing supply, population growth, and a wave of buyers trying to get in before it’s too late. Even if growth slows next year (and it likely will), the momentum is already there.
Overseas and interstate migration in Perth has been strong for several years and in the 2023-2024 financial year, Perth experienced the highest percentage population growth of all capital cities. Meanwhile, like may markets in Australia, supply lags behind demand.
In plain terms: the market doesn’t need explosive growth to hit $1M anymore. It just needs time.
The biggest mistake we're seeing buyers make
Reacting. Getting ahead of themselves. Ok that's 2...
A lot of buyers enter the market making rapid decisions, fearful of forever missing out. They aren't truly prepared for the home purchasing and ownership journey, which includes understanding the discipline of saving, knowing what drives a smart property purchase and just what it takes to own your own home, right down to details like ensuring you have your termite checks done regularly.
True, the rate of price growth is scary, but without some measure of planning, patience and discipline you might find yourself burdened by a big loan for a property which isn't right and which doesn't play into your bigger plans.
Often, going small to get a foot on the ladder is the best approach!
What smart Perth buyers are doing differently
The buyers who are still winning in this market aren’t necessarily earning more.
They’re:
Most importantly, they’re playing the long game not trying to time the market perfectly, but trying to enter it wisely.
Our take at Mountway
We don’t believe in scare tactics, and there never is a perfect time. But rushing in out of fear or peer pressure is not the way. "More haste less speed is the old saying," as is "prior planning prevents piss poor results."
It is good news that Perth has had a hot ride the last couple of years and has now reached a new level of maturity. Future Perth home owners will not have to worry so much about whether prices will go down (consider the last time a Sydney sider thought that way) -- this a good thing.
So buyers should always look to move with controlled haste, because property is an investment, and time holding investments matters more than most other things in the wealth creation game. That means doing the necessary research, savings and preparation consistently, with purpose and without delay.
Whether you’re buying your first home, upgrading, or just trying to figure out your next move, the goal isn’t to panic.
It’s to plan properly. Clarity beats fear every time.
Thinking about buying in the next 6–24 months? The earlier you get clear, the more options you have.
Let’s talk before the market decides for you.