Perth flying high as new data shows 20% annual growth in property prices

6 April 2024

Perth real estate is flying high, with new data revealing our city has recorded the most exceptional growth – almost 20% – in property values in the past year.

Figures from CoreLogic’s Hedonic Home Value Index, released on Monday, shows Perth is leading the way in comparison to other states with hefty gains in both property values and weekly rental prices, which have been attracting the attention of investors.

The market, which is now at a peak, has pushed ahead by 56% in both Perth and regional Western Australia since the onset of COVID four years ago.

In March alone, Perth property values surged by 1.9%, netting a median dwelling price of $703,502. The percentage growth is the highest of any capital city in Australia for the month.

Perth outshone the national growth of 0.6% in March, and 8.8% in the past year.

Investors are increasingly attracted to Perth for its high rental return, with rents for houses rising by 13.7% in the past year, and 15.9% for units and apartments.

Mont Property Managing Director Matthew Podesta said the current conditions were signalling continued strength in the Perth market.

“Ultra strong buyer competition, limited supply, easing interest rates and surging migration have created a perfect storm for real estate in Perth,” Mr Podesta said.

“Currently, we have more genuine buyers than we have homes to sell, and this is putting continued upward pressure on prices. Some homes are achieving sales results well above expectation simply because the market is so tight and buyers have a ‘fear of missing out’.

“For anyone looking to sell, now is an opportune time. Perth real estate has not seen it this good in a long time.”

CoreLogic Research Director Tim Lawless said he expected the outlook for housing values across the country to remain positive, with growing expectations that interest rates will start to fall later this year, providing a boost to borrowing capacity.

“Rate hikes, cost of living pressures and worsening housing affordability are all factors that have contributed to softer housing conditions (nationally) since mid-last year,” Mr Lawless said.

“However, an undersupply of housing relative to demand continues to keep upwards pressure on home values despite these headwinds.”

“Focusing on the extreme growth conditions in Perth, despite such a rapid pace of capital gains, housing values remain relatively affordable compared with the larger capital cities.

“Housing remains in short supply and purchasing demand is still high due to interstate and overseas migration rates that are well above average.”

The report says net overseas migration to WA was running well above average at 18,122 in the September quarter, up from a decade average of 4639 per quarter.

“Unlike some of the states, net interstate migration held well above the previous decade average of -96, reaching 2,237 in the quarter. The extreme flip in demographic trends has delivered a significant positive demand shock across WA housing,” the report says.

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