erth property prices could reach ridiculous levels by the middle of the century if they keep growing at the same pace of the past 25 years.
Projections show the median house price would be $2.48 million by 2043, up from the current $488,000.
A typical unit would cost $1.7 million, up from $400,000.
The Aussie Home Loans and CoreLogic report released yesterday assumed Perth house prices would continue to grow at 6.7 per cent a year, the average increase since 1993.
Southern suburb Leda was identified as the city’s star performer for house value growth over the past 25 years, increasing from $24,100 to $312,000.
It was followed by Currambine, which grew from $44,500 to $535,000.
The South West had even more remarkable growth.
Leschenault in the Shire of Harvey recorded the second highest growth rate in Australia, with median house values jumping from $36,000 in 1993 to $527,500 this year.
Meadow Springs (up from $28,000 to $370,000) and Glen Iris ($23,500 to $310,000) were another two South West locations in the national top 10.
Aussie Home Loans chief executive James Symond said the report was a timely reminder that Perth was one of Australia’s hottest real estate markets between 2003 and 2013.
“It shows that over the long term, residential property in Perth has been a strong performer, due largely to the surge in housing demand associated with the mining boom,” he said.
“Despite property values tracking lower since 2014, Perth has the third highest growth in house and unit values over the last quarter-century.
“It has 12 suburbs in the national top 100 list for value growth and the South West also has a strong presence, taking out three spots in the national top 10.”
Mr Symond said the current record low interest rates meant loans were easier to service, especially with property prices falling since 2014.
“This is reflected in our report, which shows first-homebuyers are more active in WA than any other State or Territory at 24.9 per cent,” he said.
“This is well above the national average of 17.4 per cent.”