Get ready for a major shift in Australia's housing landscape! Perth is on the rise, and it's about to make a bold statement as the third most expensive capital city by 2027.
According to Westpac's economics team, Perth is set to surpass Melbourne in terms of property prices, and here's why: relentless price growth in Western Australia and a softening market in Victoria. But here's where it gets controversial...
Westpac's latest Housing Pulse report reveals that the property market is thriving, with a 3.2% gain in the past three months, marking an impressive quarterly pace. Annual growth has accelerated to 7.1%, with houses leading the charge.
Perth, along with Darwin and Brisbane, has been a standout performer, with dwelling prices skyrocketing. Meanwhile, Sydney and Melbourne have seen more modest gains.
The bank's forecasts predict an 8% increase in national price growth by 2025, driven by exceptional gains in Brisbane and Perth, which are expected to grow by a whopping 14% annually. If this trajectory continues, Perth's median dwelling price could reach a staggering $960,000 by the end of 2027, overtaking both Melbourne and Adelaide.
And this is the part most people miss: the ongoing supply shortage is disproportionately affecting markets with historically lower median values. Westpac projects that price growth will ease nationally to around 6% in 2026 and 5% in 2027, returning to long-run averages.
Other sources, like Cotality and PropTrack, support this trend, with Perth's median dwelling value already surpassing Melbourne's. PropTrack highlights Perth as an outperformer, with values up 15.5% annually.
So, what does this mean for the future of Australian housing? Will Perth's rise continue, or is this just a temporary shift? Share your thoughts and predictions in the comments! Let's spark a discussion on this intriguing development.
