As Perth house prices nudge $1 million, what’s your suburb worth?

Powell said all capital cities are now declining, stable or experiencing a rapid slowdown in growth and all are past their peak quarterly and annual growth rates.

“The slowdown is largely due to affordability pressures, with rising prices making it harder for many buyers to keep up,” she said.

“Wages haven’t kept up with home prices, and the ongoing cost-of-living squeeze is only adding to the challenge.

“Many potential buyers are holding off, hoping for a cash rate cut to boost their borrowing power. As demand wanes, supply has been steadily rising – 2024 ended with the highest number of homes for sale for the month of December across the combined capitals in three years.”

Perth unit prices are at record highs rising 5.4 per cent, or $26,000, over the quarter to a median of $511,000. It’s the first time unit prices have surpassed $500,000.

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Strategic Property Group managing director Trent Fleskens said the lack of supply to keep up with the state’s booming population was the most chronic out of the capitals.

“We can’t even get 1000 apartments a year out of the ground,” he said.

“When we finally figure out how to build more than 25,000 homes (our average has been 15,000 since COVID), or our annual population growth falls below 30,000 a year, or our prices become so expensive they rival Sydney’s like in 2008 and the average household can’t carry the required loan to buy an average house like what is happening in Sydney now, then come give me a call.

“Meanwhile, for better or worse, prices only go one way when you can’t solve an issue like this. And we have a long way to go to figuring this one out.”

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