The Perth property market is experiencing a remarkable upward trend, with predictions suggesting significant growth by the end of 2024. According to the latest property market update from the REIWA, Perth’s median house sale price is expected to reach $740,000. This forecast reflects the robust demand and market dynamics currently at play.
Current Market Performance
As of the end of June 2024, Perth’s median house price stands at $668,000, marking an impressive 11.3% increase since December 2023. This figure also represents a 22.6% rise from the previous peak of $545,000 set in 2014. The median unit sale price has also shown significant growth, recording an 8.3% increase since December 2023 to reach $445,000.
REIWA CEO Cath Hart attributes this surge to strong demand and rapid sales, with properties continuing to sell at record speeds. The rising prices indicate a vibrant and competitive market, offering lucrative opportunities for property owners and investors.
Factors Driving Market Growth
Several factors contribute to Perth's thriving property market. Key among them is the substantial population growth, with Western Australia recording a 3.3% increase in the year to December 2023. This includes approximately 79,000 net arrivals through overseas and interstate migration, significantly boosting housing demand.
Additionally, constraints in the building industry have led to an ongoing imbalance between supply and demand. Despite improvements in home completion timeframes, the overall housing completions in Perth remain low, further intensifying market pressures.
Forecast for 2024
If current trends persist, Perth’s median house price could reach $740,000 by the end of 2024. The median unit sale price is also expected to hit a new record in the coming months, potentially surpassing the previous peak of $450,000 set in 2014.
Rental Market Insights
While Perth’s rental prices are at record highs, the market has shown signs of stabilising over the June quarter. The median dwelling rent price remained unchanged at $650 per week from March to June, although it is 8.8% higher than December 2023.
Factors influencing the rental market include an increase in tenant household sizes as people share costs, and the completion of new investor-owned builds, which add to rental supply. According to ABS data, investors accounted for 36.6% of loans for dwelling construction in the 12 months to May 2024, compared to 13.8% in the same period in 2022. This influx of new rental properties is expected to continue.
Regional Market Overview
Regional Western Australia is also set to experience growth, with the South West anticipated to see the strongest increase in median house sale prices. However, regional rental markets face more constraints compared to Perth, with fewer new supplies due to building challenges.
The Perth property market is on an upward trajectory, presenting exciting opportunities for property owners and investors. With the median house price expected to reach $740,000 by the end of 2024, now is an ideal time to consider investing in this dynamic market. Stay tuned for more updates and insights as we continue to monitor these trends.
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