Experts say the state’s house price growth should continue to outpace the nation in 2024.
Perth’s property prices are expected to grow by up to 8 per cent in 2024, twice the rate of anticipated national growth, REA Group has revealed.
The group’s property price index, Proptrack, has released its latest outlook, which predicts national property prices to grow by between 1 per cent and 4 per cent next year.
It tipped Perth’s home values to rise between 5 per cent and 8 per cent, more than any other capital.
“Perth largely defied the market downturn in 2022, despite the impact of interest rate rises, amid strong demand for property and tight supply of homes for sale,” Proptrack stated.
“In November 2023, home prices had risen 12.3 per cent year to date in Perth to sit at a record high. This is the strongest annual growth of the capital cities.”
The availability of houses for sale and rent in Perth remain at historic lows, with listings 37.2 per cent below their 10-year average in November.
CoreLogic’s latest house price index recorded a 1.9 per cent lift in Perth’s home values in November, the largest increase in two and a half years, to a median of $646,520.
Perth remains one of the most affordable capitals in Australia, with a nation median home value of $753,654.
Price peak
Data from the Real Estate Institute of Australia showed that Perth’s median house sale price reached a new high of $585,000 in November, as houses continued to sell in record time.
“Demand shows no signs of slowing,” REIWA CEO Cath Hart said.
“This is maintaining upward pressure on house prices.
“The underlying trends show more increases are on the horizon.”
Unit prices also rose to a median of $405,000 up from $400,000 at the end of October.
Ms Hart said these figures were expected to rise further.
“There are several factors behind the ongoing strength of the Perth property market,” she said.
“One is population growth. Western Australia’s population rose 2.8 per cent in the year to March. Data for June will be published in mid-December and the background indicators suggest we can expect similar growth to March.
“Secondly, the ongoing challenges in the rental market are seeing people look to buying if they can.
“And the constraints in the building industry are also seeing people turn to the established homes market.”
