For the first time in over a decade, Perth’s median home value has overtaken Melbourne’s, with Perth now sitting at $787,000 compared to Melbourne’s $782,000. That’s not just a stat — that’s a statement.
According to PropTrack, Perth has officially shaken off its underdog status and claimed its spot as one of the hottest markets in the country.
Why Perth’s On Fire
A few years ago, Perth homes were selling at a 40% discount compared to Melbourne. But since mid-2022, Perth has been Australia’s strongest growth market, month after month. Here’s why:
- Affordability: Perth started from a lower base, making it more appealing to buyers and investors priced out of the east coast.
- Population Growth: WA is booming — people are moving west, both from overseas and interstate.
- Low Supply: Builders can’t keep up. High costs, worker shortages, and slower approvals are dragging completions down.
- High Yields: Rents are skyrocketing, vacancies are rare, and investors are cashing in.
Meanwhile in Melbourne…
Melbourne might be bouncing back (+0.79% growth in May), but let’s be real: it’s still 2.85% below its 2022 peak, and the bigger picture is even worse.
In the last five years:
- Melbourne = <20% growth
- Other capitals = ~60% average
Victoria has also become Australia’s most expensive state for property taxes, especially on investment properties. With rising compliance costs and extra taxes announced in the 2023 budget, many landlords have pulled the pin.
What This Means for Buyers and Investors
If you’re looking for growth + rental income, Perth is still the play. Yes, things are slowing slightly — that’s expected after such a strong run — but:
- Vacancy rates are still rock bottom
- Population growth remains strong
- Supply is still tight
- Interest rate cuts are likely on the horizon
Melbourne might offer a small window of buying opportunity, but investors need to tread carefully with rising holding costs and lower rental returns.
Final Word: The Market Has Moved
This is not just a moment — it’s a market shift. Perth isn’t the “cheap option” anymore. It’s the top performer — and it’s been that way for two years straight.
If you’re still sitting on the fence or focused only on your local market, it’s time to think bigger. At TMAP, we’re helping investors make smart, data-backed decisions to get into the right markets before everyone else does.
Perth passed Melbourne — who’s next? Let’s play the Wealth Game together.