It now costs twice as much to build a new home in WA as it did before the COVID pandemic six years ago, new data reveals.
The Australian Bureau of Statistics released figures on Friday that shows a new home in WA now costs 95.6 per cent higher than it did in 2019.
A home that cost $300,000 to build in 2019, cost $586,800 in December 2025, showing that WA has experienced the largest escalation of costs in the country.
The data comes as the median price in 126 suburbs in Perth now jumps to over $1 million or more, which means the state now has a record number of suburbs in the million-dollar club.
The suburb of Samson, east of Fremantle, entered the club for the first time after it saw the biggest growth in its median house sale price jump by 40.5 per cent to $1.25 million.
Brentwood was the next best performing newcomer after it saw a 37.1 per cent annual growth, followed by Serpentine (36.8 per cent), Roleystone (26.3 per cent) and Maylands (23.1 per cent).
Peppermint Grove retained its position as Perth’s most expensive suburb, with a median house sale price of $5.1 million at the end of 2025. The suburb saw median house sale price growth of 9.0 per cent over the year.
“Typically we only see a handful of new entrants to the million dollar club each year. However, the Perth property market recorded another 12 months of very strong price growth, which saw the median house sale price for Greater Perth rise 13.3 per cent in 2025,” REIWA President Suzanne Brown said.
“This follows 25.0 per cent growth in 2024, when a record 37 suburbs joined the million dollar club, 34 of which were new entrants.
“If Perth property prices increase as expected over 2026, we could easily see the million dollar club reach 150 suburbs at the end of the year.”
Six suburbs have exited the million dollar club since the end of 2024. Karawara, Carmel, and Bickley saw their median house sale price fall below $1 million by the end of 2025. Mariginiup, Hovea and Millendon also dropped off the list as they had no qualifying sales recorded in 2025.
In relation to new builds, Master Builders Australia Chief Economist Shane Garrett said the rising cost of building materials had impacted the cost of construction.
He said data shows that building material costs increased by 39.4 per cent since 2019.
Products that saw the largest increase over the six years since 2019 were ceramic products, cement, timber, board and joinery products.
Master Builders Western Australia CEO Matt Moran said that, with the industry already experiencing pressure due to a significant worker shortage, building materials price rises were likely to further stifle efforts to end the housing crisis.
“MBAWA is committed to working with the State Government on pragmatic policies to assist the local industry to build the affordable houses our community needs,” he said.
“MBAWA believes that focusing on supply-side solutions, such as boosting the building and construction workforce and increasing the availability of land, is critical,” said Mr Moran.
