Australia’s Property Market Q4 2025: Perth Breaks $1M And Tops Quarterly Growth

Perth's median house price has officially broken the $1 million mark, after prices surged in the final quarter of 2025, joining Sydney, Melbourne, Canberra, Brisbane and Adelaide in the "million-dollar club'. 

According to Domain’s December 2025 House Price Report, Perth’s median house price has surged past the $1 million mark for the first time ever, landing at around $1.09 million after a 9.9 per cent quarterly jump. The increase marked not only the strongest quarterly growth of any capital city in the quarter, but Perth’s biggest price lift since 2006, as house prices jumped up $98,000 over just a 90 day period. 

If you’re buying, selling, renting, here’s what you actually need to know.

Perth Breaks Through $1 Million: What The Report Says

Domain’s latest report shows Perth’s median house price climbed $97,000+ in just three months, pushing the city past the $1 million threshold for the very first time. That puts Perth in the national “million-dollar club” alongside Sydney, Melbourne, Canberra, Brisbane and Adelaide.

The surge wasn’t limited to houses either. Perth’s unit market also strengthened, with median unit prices rising to around $608,520, reflecting growing demand from downsizers, renters priced out of houses, and investors chasing yields.

Perth Is The Fastest-Growing Market In Australia Right Now

While most capital cities continued to grow through Q4, Perth didn’t just grow, it led the pack.

That 9.9 per cent quarterly rise was:

• The strongest of any capital city in Q4 2025
• Perth’s largest quarterly increase since 2006
• A clear signal of intense buyer competition meeting tight supply

The rapid growth was driven by limited listings and slow new housing supply, as well as population growth, interstate migration and buyers willing to stretch budgets to lock in lifestyle suburbs close to beaches, rail lines and employment hubs. 

Despite affordability pressures, buyers are still showing up and selling agents are noticing shorter days on market and stronger competition.

Image Credit: Waterfront Panorama | Airbnb

What This Means For Buyers, Sellers And The National Market

If You’re A Buyer

The “wait and see” window is closing fast. Perth is no longer Australia’s bargain capital, and entry prices are moving quicker than wages. That said, units, townhouses and middle-ring suburbs still offer comparatively better value especially when stacked against Sydney or Melbourne.

Translation: flexibility matters more than ever.

If You’re A Seller

This is as close to a seller’s sweet spot as Perth has seen in years. Stock remains tight, demand is deep, and buyers are conditioned to move quickly. Presentation, pricing strategy and timing can make a six-figure difference right now.

If You’re A First-Home Buyer

Affordability is the big question mark. With Perth prices now sitting above $1 million, the pressure on first-home buyers is real (and growing). Expect continued competition for entry-level houses and increased interest in units, apartments and outer-ring lifestyle suburbs.

Nationally

Most capitals are still rising, but Perth’s pace stands out. While growth across Australia varies by city, Perth has shifted from “underrated” to “red-hot” and it’s now firmly on the radar of interstate buyers and investors alike.

The Bottom Line

Perth crossing the $1 million mark isn’t just a headline, it’s a signal that the city’s property market has entered a new chapter.

Whether you’re buying your first place, upsizing, downsizing or just trying to understand why every home open feels packed lately, one thing’s clear: Perth is no longer catching up, it’s setting the pace.

And if Q4 is anything to go by, 2026 is going to be very interesting indeed.

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Main image credit: Tourism Western Australia | Facebook