Perth has become the fourth Australian city to surpass the $1 million mark for median house prices, joining the ranks of Brisbane and Canberra. Brisbane’s median house price currently stands at $1,149,589, while Canberra’s has reached $1,033,761.

The real estate market is experiencing a significant shortage in available homes, with the number of properties listed for sale now 19% lower than this time last year and 25% below the five-year average.

Despite this scarcity, the volume of home sales has seen a slight uptick, with a 1% increase compared to the same period last year.

Australia’s smaller and mid-sized capitals have witnessed the most significant growth in property values. Cities like Perth, Brisbane, and Adelaide have seen house prices climb between 1.2% and 2%.

In contrast, the major cities of Sydney and Melbourne have experienced only marginal increases, with prices inching up by 0.2% and 0.1%, respectively.

Over the past year, Darwin has led the country in property price hikes, experiencing a remarkable 19.7% increase.

The second-largest increase is in Perth, where combined house and unit prices have risen by 18.5 per cent annually, making it the third most expensive city to buy a property after Sydney and Brisbane.

Sydney and Melbourne properties are up a comparatively small 6.4 and 5.4 per cent annually.

In worrying news for housing affordability and equality, homes at the most affordable end of the housing market are seeing the largest price hikes.

House values in the lowest quartile rose by 1.3 per cent, compared to just 0.3 per cent rise in the top quartile.

“This trend of stronger growth conditions at lower price points is supported by intense competition for more affordable houses,” said Lawless.

“This is where first home buyers, investors and, progressively, mainstream demand is most concentrated.”

NEVER MISS A STORY: Get your breaking news and exclusive stories first by following us across all platforms.