Perth’s property market is undergoing a major transformation as rising prices reshape home buyer behaviour across both luxury and entry-level segments, according to local buyer’s agent Peter Gavalas (pictured) of Resolve Property Solutions.
“Some buyers are redefining what makes a home ‘premium,’ moving beyond traditional luxury suburbs, while others are seizing opportunities in the affordable segment,” Gavalas said.
Historically, premium Perth real estate meant large homes in elite suburbs like Peppermint Grove or Cottesloe. But affordability constraints and modern lifestyle preferences are driving a broader rethink of what “premium” really means.
“Several locations that were previously not considered ‘premium’ are now fetching much higher prices because of increased demand,” Gavalas said.
This shift comes as Perth continues to outperform the rest of the country. The city has delivered double-digit annual price growth since 2022 and remains the strongest capital city market in Australia.
According to the Real Estate Institute of Western Australia (REIWA), 37 Perth suburbs joined the million-dollar club in 2024, with many located outside the city’s traditional high-end enclaves.
“Although these are not the city’s traditional luxury neighbourhoods like Peppermint Grove or Cottesloe, buyers are still spending a lot of money and want to feel they are getting their money’s worth,” Gavalas said. “As a result, they are placing more emphasis on other features.”
Instead of prestige postcodes, home buyers are focusing on quality of lifestyle and long-term livability.
“They’re looking for smarter, more sustainable options,” Gavalas said. “Buyers are increasingly prioritising newer builds that require less maintenance, ‘lock-and-leave’ lifestyles that offer convenience and energy-efficient homes that reduce ongoing costs.”
REIWA’s latest quarterly forecast suggests Perth is on track for another 10% rise in house prices in 2025, while unit price growth could even exceed that — reinforcing the trend of rising demand across a broader mix of property types.
At the more affordable end of the market, rising property values are pushing home buyers to explore different strategies to gain entry.
“It’s no longer just about prestige postcodes or big blocks,” Gavalas said. “Today’s buyers care more about long-term value, convenience and quality design.”
Cotality (formerly CoreLogic) data showed Perth’s median dwelling value hit $807,728 in April, following a 10% annual gain — making it one of the strongest-performing capital city markets in Australia.
Despite the surge, Perth remains comparatively affordable, keeping the market accessible to many first-time home buyers — but only if they adapt to the new definition of value.
