Entry-level buyers are facing an increasingly steep hill as the cost of Perth’s cheapest homes rise faster than the rest of the market — and the trend is set to worsen within weeks.

New research by Ray White Real Estate shows Perth’s cheapest units — the 25 per cent of the market priced under $500,000 — had the biggest year-on-year price growth in the country, at 16.5 per cent.

The research shows the increase in the lower quartile was 1.9 per cent higher than the 15.5 per cent rise across the rest of the local unit market.

Perth’s cheaper houses — priced under $742,000 — also outperformed the broader market, with the lower quartile up 12.8 per cent compared to 12.4 per cent for median-priced houses over the same time period.

Economist Nerida Conisbee said demand was being funnelled i

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