Perth real estate goes from strength to strength, as Alfred Cove and Melville named ‘million dollar club’ newcomers

10 February 2024

Perth is laying claim to the strongest real estate market in the country, new data shows, as Alfred Cove and Melville are crowned newcomers to the city’s ‘million dollar club’.

The CoreLogic Hedonic Home Value Index, released last week, shows dwelling prices across Perth surged by 1.6% in January, resulting in growth of 16.7% over the past year – the highest of any capital city in the country.

It comes as rental prices continue to rise. Over the past year, rents in Perth have seen the greatest upswing of all capitals, with prices for houses increasing by 13% and units by 16.5%.

Since the onset of COVID in March 2020, housing values in Perth have surged a staggering 49.9%, with the market now at a peak.

Mont Property Managing Director Matthew Podesta said there was no better time to sell in Perth than now, citing the city’s extraordinary growth and dynamic market conditions.

“Perth is at the top of its game right now when it comes to property,” Mr Podesta said.

“We are not even two months into the new year and we are seeing more buyers, sellers and investors exploring their options in our local market.

“This week’s decision by the Reserve Bank of Australia will add further weight to our robust market. Many buyers who have been sitting on the fence, waiting and watching, are finding renewed confidence to purchase.”

It comes as the Real Estate Institute of WA announced that Alfred Cove and Melville had joined Perth’s ‘million dollar club’ in 2023, alongside six other new additions – Iluka, Shelley, Coogee, Bedfordale, Ocean Reef and White Gum Valley where the suburbs’ median sales prices exceeded $1 million.

The suburbs joined returning chart-toppers Peppermint Grove, Cottesloe, Dalkeith and City Beach in the esteemed list. REIWA Chief Executive Cath Hart said all eight newcomer suburbs have been edging closer to the million dollar mark over the past decade. “Many of these suburbs have seen expansion and development in recent years, driving up prices in these areas,” she said. CoreLogic Research Director Tim Lawless said Perth was a standout among the capital cities for its persistently rapid rate of capital gains.

“Perth home values rose a further 1.6% in January, on par with the city’s growth trend in November and December and only slightly lower than the recent high of 1.8% recorded in October,” Mr Lawless said.

“The western capital continues to see housing demand outweigh supply, helping to push values 16.7% higher over the past 12 months.

“Despite that, housing prices remain relatively affordable compared with most capital cities, with the median dwelling value sitting just under $677,000.”

REIWA has predicted house prices in Perth will increase by 10% in 2024, with rents also rising, albeit at a slower rate.

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