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Perth house prices remain on track to hit $1 million by the end of 2025 according to fresh data contained in the latest Domain House Price Report released on Thursday.

However, the pace of growth has slowed substantially with median Perth house prices at a record high of $917,706, a growth of 0.1 per cent, or less than $500, over the March quarter. Suburbs with low sales have been excluded from the list.

It marks the 10th consecutive quarterly rise relative to the gains throughout 2023-24 but was the slowest quarterly gain in 2½ years.

Annual growth has also eased to an 18-month low, yet at 14.1 per cent ($113,500) it remains strong as Perth holds the highest annual increase among the capitals.

Domain chief of research and economics Nicola Powell said despite the slowdown, Perth could hit the $1 million mark by the end of 2025, with 9 per cent ($82,300) extra needed to achieve this, which remained feasible given the 8-10 per cent forecast growth range.

“A gradual loosening of monetary policy, relief from rising living costs, growing household incomes, tight job markets and improved sentiment are expected to support the housing market,” she said.

“However, multiple challenges are likely to offset these positive influences and keep price growth in check.

“The rate-cutting cycle is expected to unfold slowly, housing remains prohibitively expensive for many, population gains have normalised, and cautious lending standards persist.”

Powell added uncertainty arising from the Trump administration’s economic and foreign policies may influence global markets and, in turn, the Reserve Bank of Australia’s decisions on the cash rate, further shaping how quickly housing values may rise.

“We have already seen how quickly consumer sentiment has been impacted – it has dropped to a six-month low,” she said.

“Until home loan serviceability improves significantly, it is difficult to envision housing markets transitioning into a pronounced growth trend.”

In bad news for unit owners, Perth prices declined for the first time in two years by $4,700 (-0.9 per cent), ending seven consecutive quarters of growth. Annual gains have slowed to the lowest in a year – but remain strong at 19.1 per cent ($81,500), the best among all capitals.

Strategic Property Group managing director Trent Fleskens predicted Perth’s market would still grow strongly this year, but most of that growth would be from May onwards.

“Whilst markets are never linear in their growth direction, we can be confident that the fundamentals of demand and supply still support growth in house prices,” he said.

“I say this without even mentioning the big accelerator, which will be the expected drop in interest rates this year.

“The first quarter was always going to be a slower one for growth – a state and federal election, high-interest rates, and Trump tariffs.”

Fleskens said weekly property transactions were hovering around 900 to 1100 per week in Perth with around 5000 properties listed for sale.

He said that was a far cry from 2019 when weekly transactions sat at around 550 with approximately 17,000 properties available.

Nationally Sydney and Adelaide house prices are at a record high with Adelaide house prices hitting $1 million for the first time, while Sydney house prices are just shy of $1.7 million.

Melbourne’s weaker performance over the past five years, combined with its difficulty achieving a stable recovery, has created opportunities for buyers. Median house prices there remain $57,200 (-5.2 per cent) below the December 2021 peak at $1.03 million.

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