New Data Reveals Perth Home Construction Costs Double in Six Years
The cost of home construction in Western Australia has experienced a staggering increase over the past six years. New figures from the Australian Bureau of Statistics indicate that the price of building a new home has risen by 95.6%, effectively doubling since 2019.
Significant Increase in Construction Costs
In 2019, constructing a home was estimated at $300,000, but by December 2025, that cost soared to $586,800. This makes Western Australia the state with the largest cost escalation in home construction across the nation.
Record Suburbs in the Million-Dollar Club
As construction costs rise, the real estate market in Perth is also seeing a significant shift. The median house prices in 126 suburbs now exceed $1 million, marking a record number of suburbs entering the million-dollar club. Notable highlights include:
- Samson has seen a remarkable 40.5% increase, with a median price hitting $1.25 million.
- Brentwood followed with a 37.1% annual growth rate.
- Other suburbs like Serpentine, Roleystone, and Maylands reported substantial gains of 36.8%, 26.3%, and 23.1%, respectively.
- Peppermint Grove remains Perth’s priciest suburb, with a median sale price of $5.1 million, having increased by 9.0% over the year.
Despite the growth, six suburbs, including Karawara, Carmel, and Bickley, have fallen out of the million-dollar club as their median house prices dropped below $1 million by the end of 2025.
Contributing Factors to Rising Construction Costs
The surge in home construction costs can be attributed to various factors. According to Shane Garrett, Chief Economist at Master Builders Australia, building material prices have risen by 39.4% since 2019. Key products that have significantly increased include:
- Ceramic products
- Cement
- Timber
- Board and joinery products
Matt Moran, CEO of Master Builders Western Australia, emphasized that the current housing crisis is further exacerbated by rising material costs and a significant worker shortage in the construction sector. Both leaders called for collaborative efforts with the State Government to enhance the local industry.
The Future of the Perth Property Market
While the past few years have shown remarkable growth, experts predict that property prices in Perth may continue to rise in 2026. If trends persist, the number of suburbs in the million-dollar club could soar to 150 by the year’s end. This prospect reflects the ongoing pressure on both the construction industry and the housing market.
Addressing the challenges in construction and housing availability remains critical for the community’s future stability. Filmogaz.com will continue to monitor these developments closely.
