Perth home values add $350k in five years – but still short of 2000s boom

Perth property prices have surged since the pandemic closed the state’s borders five years ago, adding an extra $346,477 to the median price of a home – a bonanza for those who got in early.

CoreLogic economist Kaytlin Ezzy said the 75 per cent rise in home values across the city was the largest across the nation’s capitals.

Perth home values have increased 75 per cent since 2020. Credit: Ross Swanborough

But it was only half of Perth’s largest five-year gain through the mid-2000s, when values rose nearly 140 per cent over the five years to September 2006.

“While significant, looking at historical data reveals that the latest five-year growth figure remains well below the historic peaks recorded in the early 2000s and late 1980s,” she said.

“Strong economic conditions and positive interstate migration amid the 2000s mining boom saw housing values in the western capital skyrocket, before falling through much of the 2010s.”

Most of the growth in values over the past five years has been driven by low stock levels and increased demand, Ezzy said.

But this growth cycle remained moderate compared to earlier periods, when financial deregulation, strong economic growth and favourable demographic shifts helped fuel remarkable growth.

Domain data shows the suburbs with the largest gains over the past few years were in the more affordable pockets of Perth. Southern suburbs dominated the top 10, led by Camillo (up 163.6 per cent to $580,000) and followed by Armadale (up 145.4 per cent to $530,000), Cooloongup (up 135.3 per cent to $600,000) and Parmelia (up 127.5 per cent to $580,000).

The beachside suburbs of North Beach and Kallaroo were the only postcodes from the mid-price range to almost double in value, propelling them into the million-dollar club.

There are signs Perth’s property market is becoming more favourable to buyers with home prices rising only a nanoscopic 0.2 per cent in the three months to March and 11.9 per cent over the year according to CoreLogic.

Properties are staying on the market longer, with the median time to sell increasing from 9 days a year ago, to 19.

The flow of freshly advertised properties has continued to improve, up 6 per cent on the same period last year.

Ray White Group chief economist Nerida Conisbee said the months ahead would bring continued uncertainty as markets adjusted to Trump’s new US tariffs and shifting monetary policy.

“While residential property may or may not replicate the exceptional growth rates of the past five years, it remains fundamentally more stable than many alternative investment options,” she said.

“Global markets are currently experiencing significant disruption from Trump’s Liberation Day tariffs.

“This economic upheaval has dramatically altered interest rate expectations with markets anticipating an almost certain 0.5 per cent cut at the next RBA meeting on May 20.

“Such reductions would benefit mortgage holders significantly and will almost certainly direct more money into the housing market, supporting both housing supply and price growth.”

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