Login
Perth joins million-dollar club: Are investor opportunities disappearing?
Now that Perth has joined the million-dollar club, are there still hidden opportunities for investors in a market with soaring prices and shrinking supply? A veteran agent says yes, but only for those with a savvy strategy.
Perth has finally entered Australia’s “million-dollar club”, with the median house price rising 9.9 per cent, or $98,000, in the December quarter, to $1,087,762.
It has become the sixth capital city to hit the milestone, following Adelaide in April 2025.
Domain’s December Quarter House Price Report showed that the city's growth median house price has risen from $528,779 in 2019 to more than double to $1,087,762 in December 2025.
REB Top 50 WA Agent, Perth Property Partners director Rob Walker, said that the Perth market had skyrocketed to a median house price of a million as a result of an exceptionally sharp last quarter.
“This has coincided with the lowest level of listings on record, with only approximately 1,881 listings in Perth in December 2025, down by 57 per cent compared to the same time last year, creating a clear imbalance between supply and demand,” Walker told SPI.
Walker said that since 2019, the Perth market had shifted considerably, from a median house price of half a million, 14,772 listings, and 65-day selling times to a high-priced market with stock shortages.
“Now it is only taking an average of 9 days to sell a house in Perth, and supply remains limited due to the gap between population growth and new home construction.
According to Walker, the low stock and short days on market have changed both buyers and seller behaviour, pushing investors to review their strategy.
“Many buyers are competing repeatedly for limited opportunities, often missing out multiple times and remain in the market trying to purchase.”
“Opportunities still exist, but investors need to refocus on long-term fundamentals.
“The emphasis should be on why they are buying, whether that is yield, land value, future scarcity, value-add potential, infrastructure, or relative value compared to neighbouring suburbs.”
He said that with strong price growth, recent Perth investors have been chasing rental yields more than fast growth.
“The opportunity lies in acquiring assets that perform across market cycles rather than chasing short-term growth.”
Walker said that as houses have become less affordable, competition shifted to villas, units, and apartments, which have seen particularly strong demand.
“At the same time, many owner-occupiers looking to upsize or downsize are delaying decisions due to uncertainty around securing their next home, which is further constraining supply.”
He said that as competition increases, so does buyer frustration, requiring sharper negotiation skills as each property receives multiple offers.
“Negotiation has also become more structured.”
According to Walker, there is little evidence that the Perth market will slow in the short to medium term, and urged investors to remain disciplined to stay competitive.
He said investors should focus on scarcity rather than sameness, targeting properties with land, prime locations, good schools, walkability, transport, and lifestyle amenities, as constrained supply adds value.
Similarly, he said investors should also focus on value-add opportunities they can control, such as cosmetic renovations, functional floorplan changes, zoning upgrades, or subdivision potential.
“[Investors] can always make improvements to the property, but you can’t change the location. Research suburbs and popular locations will be key.”
He said that investors should also be realistic about buffers and holding costs, as higher prices mean higher repayments and tighter serviceability, making it essential to stress-test assumptions and plan for longer hold periods.
“Ultimately, strong investors focus less on timing the market and more on buying quality assets they can hold with confidence.”
For the past six years, the Perth market has been making headlines, attracting buyers from all over the country, with its entry into the million-dollar market awaiting to happen.
Perth’s property market has seen long-term growth, with the median house price rising from just $143,394 in 1994 to $528,779 in 2019, before more than doubling again to $1,087,762 today.
The growth has been particularly pronounced in certain suburbs, with over 50 areas experiencing house prices doubling in the past five years alone, such as Orelia up 154 per cent, Parmelia up 148 per cent and Coolungup up 147.8 per cent, leading the charge.
Domain said that data comparisons with other capital cities highlighted just how far Perth has come, with houses in 2019 being 41.5 per cent cheaper than in Melbourne, but that gap has now narrowed to only 2.1 per cent in 2025.
Similarly, Perth units have even slightly overtaken their Melbourne counterparts.
Entry-level buyers have been hit hardest, with house prices rising 74.3 per cent since 2019, and outperforming premium houses by 19.8 percentage points since 2022
Domain president Jason Pellegrino said that Perth's entering the million-dollar club has highlighted the scale of change underway in Australia’s housing market.
“The city’s strong appeal as a place to live, work and invest, combined with the state’s economic strength and liveability, has attracted new residents at a record pace, making Western Australia the nation's fastest-growing state.”
“The milestone also underscores growing affordability pressures, particularly for first home buyers,” Pellegrino concluded.
