Perth's Housing Market Sees Latest Developments and What Happened This Week

This week, the Western Australian government announced plans to release more land for development in the suburbs of Ellenbrook and Jindalee, in an effort to ease the pressure on the city's housing market. The move comes as the latest data from the Real Estate Institute of Western Australia shows that the median house price in Perth has risen to $650,000, with some suburbs experiencing increases of up to 15% in the past year.

The current state of the housing market in Perth is a major concern for many residents, particularly those looking to buy or rent a home. The city's economy, driven by the iron ore and resources industry, has seen a significant surge in demand for housing in recent years. This, combined with the influx of new residents drawn by the AUKUS defence contracts and the expansion of the Stirling Naval Base, has put a strain on the city's housing supply. As a result, prices have skyrocketed, making it difficult for many people to afford a home.

Local Developments and Initiatives

In response to the housing crisis, the City of Perth has launched several initiatives aimed at increasing the supply of affordable housing. The Metronet rail expansion, which will connect suburbs like Morley and Canning Vale to the city centre, is expected to increase the attractiveness of these areas to homebuyers and renters. Additionally, organisations like the Housing Authority and the Department of Communities are working to provide more affordable housing options, including the development of new apartments in areas like East Perth and Northbridge.

According to data from the Australian Bureau of Statistics, the number of dwellings approved for construction in Western Australia has increased by 12.1% in the past year, with a total of 23,444 dwellings approved in the 12 months to May 2026. The median rent for a three-bedroom house in Perth is now $450 per week, up from $380 per week just 12 months ago. In suburbs like Subiaco and Fremantle, the median house price has reached record highs, with prices ranging from $1.2 million to $1.5 million.

As the housing market continues to evolve, it's essential for buyers, renters, and investors to stay informed about the latest developments and trends. With the state budget surplus expected to be announced later this year, there may be opportunities for further investment in affordable housing initiatives. In the meantime, residents can explore options like the Keystart home loan program, which provides low-deposit loans to first-home buyers, or the National Rental Affordability Scheme, which offers incentives for developers to build affordable rental properties. As the city continues to grow and develop, it's crucial that the housing market is able to meet the needs of its residents, and that affordable options are available to all.