WA housing crisis: Houses jumping $5625 a week, rising ten times faster than wages, according to Cotality

Perth’s property market is continuing to bolt, with home values rising about ten times faster than wages, up by more than $20,000 in January alone. New data from Cotality shows the 2.3 per cent monthly increase — the highest in Australia — added more than $22,500 to the median dwelling value over the month to take the price for houses and units to $989,211. It is the third-highest monthly boost in WA history, with newly revised figures revealing Perth dwellings grew by $22,680 in October and by $26,035 in November. Cotality research director Tim Lawless said the astonishing growth was fuelled by low stock levels, with about 14 per cent fewer properties than a year ago and 48 per cent fewer than the five-year average. “Such low supply, together with home values rising so rapidly, is likely to be creating an intense sense of urgency among buyers where WA housing values are rising about 10 times faster than wages,” he said. The wage comparison is based on WA’s quarterly rate of property growth in the last three months of 2025 (up 7.4 per cent) against WA’s fourth quarter wage price index (up 0.8 per cent). Separate data from the Real Estate Institute of WA shows units are selling in a record seven days and houses in eight — both six days faster than last year. REIWA President Suzanne Brown said February listings were up 10.5 per cent compared to January — to a total of 2723 active listings — but remained was 43.8 per cent lower than February last year. “Even though there has been an increase in new listings, there is so much pent-up demand in the market that they are snapped up extremely quickly, keeping active listings very low,” she said. Mr Lawless, said Australia was in a counter-cyclical market, with mid-sized cities like Perth, Brisbane and Adelaide leading the growth as the traditional leaders Sydney and Melbourne flatlined. The key difference between the mid-sized and the bigger market remains the volume of listings, with Sydney listings down only one per cent, and Melbourne only 4.3 per cent, on the five year average. “The clear slowdown in housing conditions across Sydney and Melbourne could signal an easing in growth conditions elsewhere down the track, but for now, the mid-sized capitals continue to see support from extremely low inventory levels, which is boosting the growth in values,” he said. Mr Lawless said the cheaper end of the market was facing the steepest competition. “First-homebuyers, investors and subsequent buyers are all competing across this sector of the market, while credit is less available across the higher price points due to serviceability constraints.” Perth February increase: 2.3% Quarterly increase: 6.8% Annual: 22.0% median dwelling price: $989,211 Regional WA February increase: 1.6 per cent Quarterly: 3.8 per cent Annual: 18.6 per cent Median dwelling price: $675,539 *source: Cotality Highest monthly price growth in February: Yokine (up 7.3 per cent to $1,180,000), Warnbro (up 1.8 per cent to $728,000), Banksia Grove (up 1.7 per cent to $763,000), Scarborough (up 1.6 per cent to $1,371,500) and Rockingham (up 1.6 per cent to $800,000). Highest unit price growth in February: Bayswater (up 6.9 per cent to $567,500), Claremont (up 3.9 per cent to $888,000), Wembley (up 3.2 per cent to $480,000), Nollamara (up 2.9 per cent to $643,100), and Cockburn Central (up 1.9 per cent to $545,000). source: REIWA Fastest selling suburbs for houses in February: Woodvale, Parmelia, Lake Coogee, Cooloongup, Pearsall - five days Willetton, Wandi, Quinns Rocks, Mount Lawley, Mount Claremont - six days The fastest selling suburbs for units in February: Yokine - three days Cockburn Central - four days Balga, Wembley, Claremont - six days Maylands, Shenton Park, Bayswater, Rivervale West Perth -seven days source: REIWA