Australia’s property landscape continues to shift, with two of the country’s traditionally more affordable capital cities now redefining expectations around price growth and accessibility.

Perth has officially joined the nation’s “million dollar club”, with its median house price climbing to $1,087,762 in the December quarter, marking a sharp rise over recent months and cementing its position as one of the country’s fastest-moving markets.


Once considered one of Australia’s most attainable capital cities, Perth’s trajectory tells a broader story about changing migration patterns, economic strength and shifting buyer demand. Strong population growth and lifestyle appeal have driven sustained interest, pushing values higher at a pace that few anticipated.
Over the past five years in particular, growth has accelerated significantly. Tim Whall, Founder at Off The Plan, explained the complex landscape, “Entry-level housing has seen some of the strongest gains, rising sharply as buyers compete for limited stock, while dozens of suburbs have recorded price surges well above long-term averages.”


“This milestone comes with a clear trade-off, and affordability pressures are intensifying,” he said.


With mortgage repayments now consuming a significantly larger share of household income than they did just a few years ago. For many buyers, especially those entering the market for the first time, the pathway to home ownership is becoming increasingly complex.


Adelaide’s Rapid Rise Continues


While Perth has crossed the $1 million threshold, Adelaide is quickly closing the gap.


The South Australian capital recorded a median house price of approximately $925,000 at the end of 2025, reflecting a substantial quarterly increase and continuing a period of consistent growth. Alternative data places the figure even higher, highlighting the strength and competitiveness of the market.


Adelaide’s appeal has long been tied to its relative affordability compared to Sydney and Melbourne. That gap, however, has narrowed considerably in recent years as interstate migration, limited housing supply and sustained demand place upward pressure on prices.


While the market remains active, with strong attendance at inspections and continued buyer interest, some economists expect growth to moderate in the near term rather than push decisively beyond the $1 million mark in 2026.


A National Shift in Affordability


“What is unfolding across Perth and Adelaide reflects a broader national trend,” said Tim. “Cities once seen as accessible alternatives are now experiencing the same dynamics that have long defined Sydney and Melbourne, where demand continues to outpace supply.”


Affordability is increasingly shaping how and where people buy. Many purchasers are adapting their expectations, whether that means looking further from established centres, considering smaller dwellings, or shifting toward apartments and townhomes as more attainable options, often off-the-plan.


At the same time, supply remains a critical factor. While there are efforts underway to increase housing availability, the imbalance between supply and demand continues to underpin price growth across much of the country.


For buyers, the evolving market reinforces the importance of flexibility and timing. While price growth in some cities may begin to stabilise, the underlying fundamentals remain strong, particularly in markets supported by population growth and economic resilience.


Perth, despite reaching the $1 million benchmark, still offers great value when compared to eastern seaboard capitals. Adelaide continues to present opportunity, though the window for affordability is narrowing.
As Australia’s housing market continues to recalibrate, the definition of “affordable” is changing, and buyers are adapting alongside it.


Whether you’re looking to enter the market, invest or secure a future home, understanding where growth is occurring is key. Discover the latest off-the-plan opportunities across Australia, compare locations and stay ahead of market trends at Off The Plan.