Perth is now a $1 million city. What does that mean for buyers?

Key takeaways:  

• Perth has joined the million-dollar club, with the median dwelling value reaching $1.05 million after years of rapid growth.

• Buyers are adjusting expectations, with larger deposits, dual incomes and compromises on location or property size becoming more common.

• Perth remains cheaper than Sydney and Brisbane, despite recording some of the strongest housing market growth in Australia.

• More choice may be emerging for buyers, as listing levels gradually rise and market conditions begin to rebalance.

• Understanding your borrowing power may help you navigate a market that has changed significantly over the past five years.

Five years ago, many Perth buyers could find a family home for less than $500,000.

Today, many buyers are considering properties at significantly higher price points, with some homes approaching $1 million.

Perth has officially joined Australia's million-dollar club, joining Sydney and Brisbane, with the city's median dwelling value now sitting above $1 million for the first time, according to Cotality’s national Home Value Index for May, 2026.

The city's median dwelling value has reached $1,050,354 after rising 25.8% over the past year and more than 91% over the past five years.

Source: Cotality national Home Value Index, May 2026

For buyers, the milestone is more than just a headline number.

It reflects a housing market that has undergone one of the most dramatic transformations in the country, changing what many Australians can afford and influencing where and how they buy.

Perth-based Aussie Broker Matthew Bulmer said many buyers had already adjusted to the market's new reality.

“People have come to the realisation that it was fairly easy to get something under $500,000 five years ago,” he said. “Whereas now first-home buyers and people looking to upgrade have adjusted to the fact that Perth is now a much more expensive market.

“Even now, when the market seems a little more uncertain, you're still seeing massive numbers of cars at open homes.”

The adjustment has been significant, particularly for first-home buyers and families looking to upgrade, but it has not stopped people from entering the market.

What Perth's $1 million milestone means

Perth is now Australia's third million-dollar capital city behind Sydney and Brisbane.

According to Cotality, dwelling values in Perth have increased by 91.4% over the past five years, adding roughly $500,000 to $600,000 to the value of a typical home.

Cotality research director Tim Lawless said the scale of growth was significant, but it was important to understand where the market started.

“Coming into 2020 and 2021, the market in Perth was coming out of a prolonged slump where housing values were flat to negative post-mining boom,” he said.

“So it's important to remember that even though it (the growth) is really extreme, it is also off a very low base.”

Lawless said Perth's affordability position was more nuanced than the $1 million headline might suggest.

“When you look at some of the affordability metrics, like a dwelling value-to-income ratio, Perth is now a little bit above the middle of the pack because incomes tend to be relatively high across Perth,” he said.

While affordability pressures have increased, Perth's relatively strong incomes help explain why buyer demand has remained resilient despite rapid price growth.

What does a $1 million Perth property actually cost to buy?

For many buyers, the biggest impact of Perth's price growth isn't the median value itself.

It's what that means for borrowing requirements.

Using Perth's median dwelling value of around $1.05 million as an example, a buyer with a 20% deposit may need approximately $210,000 upfront and a loan of around $840,000, before taking into account purchase costs and individual circumstances.

Bulmer said larger deposits and higher incomes were increasingly common among buyers entering the market.

“It's a lot harder for single-income earners, basically,” he said.

“There are larger deposits and larger incomes out there, but the translation of that into what you can actually afford is a lot harder now.”

What does this mean for first-home buyers?

For first-home buyers, servicing a loan has become one of the biggest challenges.

“Between rates being high and prices being where they're at, it's definitely a tougher entry point than it has traditionally been,” Bulmer said.

He said many first-home buyers were arriving with deposits ranging from around $80,000 to $250,000.

“Around $80,000 is realistically the minimum you need these days in Perth if you don't have guarantors,” he added.

The increase in the First Home Owner Grant may provide support for some buyers, but Bulmer said current price caps in Western Australia may not reflect the realities of today's market.

In Western Australia, the First Home Owner Grant is available to eligible buyers purchasing or building a new home, subject to property value caps. Bulmer said those thresholds may not have kept pace with Perth's recent price growth.

"When you put two and two together, a lot of people still can't buy a standard house within Perth,” Bulmer said.

The changes aren't only affecting first-home buyers. Families looking to upgrade are also finding themselves in a different market.

Bulmer said many existing homeowners had benefited from rising property values, but were often finding the next rung on the property ladder had become more expensive as well.

“People looking to sell and upgrade are having to search anywhere from about $1.5 million to $3 million to get from their first home into their second home,” Bulmer added.

How does Perth compare to Sydney and Brisbane?

Perth's $1 million milestone is significant, but buyers in the city may still face lower borrowing requirements than those purchasing a typical home in Sydney or Brisbane.

Using median dwelling values and assuming a 20% deposit, the loan required for a typical purchase would look something like this:

Source: Cotality national Home Value Index, May 2026

Illustrative examples only. Figures assume a 20% deposit and do not include stamp duty, lender fees, legal costs or other purchase expenses. Actual borrowing requirements will depend on individual circumstances.

For buyers, that difference can be substantial. Compared to a typical Sydney purchase, a buyer purchasing at Perth's median value may need around $185,000 less in borrowing and around $46,000 less upfront for a 20% deposit, depending on their circumstances.

While Perth's median dwelling value now sits above $1 million, it remains below Sydney's median dwelling value of $1,282,020 and Brisbane's median value of $1,126,149.

Incomes also tend to be relatively strong in Western Australia, which could also support borrowing capacity for some households, while interstate migration and investor activity have also helped support demand.

Bulmer said buyers had largely adjusted to the higher price environment.

“I think there was definitely a hit when it was in its most rapid growth phase, but now, when you're talking to people, they're realistic about what pricing is,” he said.

For many households, understanding what may be achievable within their budget is becoming more important than comparing Perth to other cities.

Speaking with an Aussie Broker can help buyers understand their borrowing capacity, compare home loan options and explore what may be achievable based on their individual circumstances.

You might also be interested in: Could waiting to buy a home cost you?

How buyers are adapting

As property prices have increased, buyers are making different trade-offs to get into the market.

For some, that means moving further from the CBD. For others, it means choosing a smaller property to remain close to work, family or lifestyle hubs.

Many buyers are still successfully entering the market, according to Bulmer, but often with different expectations than they may have had several years ago.

“It's literally couples buying one-bedroom apartments in the areas they want to live in because that's all they can afford,” he said.

The shift is affecting a broad range of buyers, including higher-income households.

“We're talking about professionals too, lawyers and engineers, who would have previously been on bigger blocks closer to the city,” Bulmer added.

“Now they're having to take on very large debts to do that.”

Flexible work arrangements are also influencing purchasing decisions.

“Some are willing to move a little further away because they can work from home,” Bulmer said.

“Others prefer to stay close to lifestyle hubs or work and simply buy something smaller.”

The result is a market where compromises on location, property size or land size have become increasingly common.

What are Perth’s most affordable suburbs?

While Perth's median value now sits above $1 million, not every suburb has crossed that threshold.

Lawless said affordability generally improved further from the CBD and coastline.

“A general rule of thumb is that the further away from the CBD and the coastline you get, the cheaper housing prices are going to become,” he said.

He pointed to suburbs including Orelia in Kwinana and Mandurah as examples of areas where median house values remain below Perth's overall median.

Top 20: lowest median house values, Perth (as at May 2026)

Source: Cotality national Home Value Index, May 2026

Lawless said buyers looking for more affordable options may need to broaden their search beyond Perth's inner suburbs and coastal markets.

For buyers with flexibility around location, exploring a broader range of suburbs may help identify properties that better align with their budget and lifestyle needs.

As always, property suitability will depend on individual circumstances, including commuting requirements, employment, family needs, financial circumstances, borrowing capacity and lender eligibility criteria.

What happens next for Perth?

Although Perth remains Australia's strongest-performing housing market, growth is already showing signs of slowing, according to Lawless.

“It has been slowing since late last year, and I think it will continue to slow through the rest of the year,” he said.

Market conditions may be slowly becoming more favourable for buyers with the number of homes for sale rising in recent months.

“If you go back to the end of last year, the number of listings in Perth was tracking about 50% below the five-year average for that time of year,” Lawless said.

“Now we're seeing listings tracking more like 20% to 25% below the five-year average.”

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While Perth's million-dollar milestone highlights how much the market has changed, rising listings and slower growth may provide buyers with more choice than they have had in recent years.

For buyers, understanding borrowing capacity, deposit requirements and available options may be more important than trying to predict exactly where prices move next.

Property prices, borrowing capacity and market conditions can change quickly.

An Aussie Broker can help you understand your borrowing power, compare home loan options and prepare for your next property move with confidence.