Stronghold: Perth property growth hits record high

22 September 2023

Perth has maintained its position as one of the strongest real estate markets in the country, sustaining the highest property growth of any capital city in the past year.

The latest CoreLogic Hedonic Home Value Index, published on September 1, shows Perth was one of three capitals to show growth over the past 12 months, recording the highest increase at 4.5%. Adelaide sustained a 2.2% rise, while Sydney grew by 1.2%.

Since finding a floor in February, Perth home values have risen by 5.3%, taking values to a new record high. But advertised supply remains low, with listing counts sitting around 40% below the previous five-year average.

Data shows Perth recorded 0.9% growth in August, on the back of a 1.0% rise in dwelling values in July and a 0.9% rise in June.

The median dwelling value in Perth is now $607,083.

Rents for houses endured the highest growth in the country, surging by 13.1% in the past year. For units, rental prices reached a new cyclical high in annual growth, surging by 16.4% – the second highest increase, trailing Sydney at 16.7%.

Mont Property Managing Director Matthew Podesta said the Perth market’s good fortune was likely to continue, amid strong population growth, off-the-chart housing demand, low supply and the continued pause on interest rate rises.

“This is one of the most positive report cards for the Perth property market in recent times and is evidence that local real estate is in the midst of a significant growth phase,” Mr Podesta said.

“For Perth, the only way is up when it comes to property prices. I cannot see the heat coming off the market any time soon, making it an opportune time for sellers to take advantage of the positive market conditions.”

Real Estate Institute of Western Australia data shows the number of properties available for sale in Perth was 5170 at the end of August – 1% higher than July, but 36.8% lower than a year ago.

“We are seeing properties come onto the market in reasonable numbers, but demand is high, buyers are active and anything new is snapped up quickly, in a matter of days in a number of suburbs,” REIWA Chief Executive Officer Cath Hart said.

“The underlying trends suggest we can expect further growth over the rest of the year. The good news for prospective buyers is that the rate of growth is slowing.”

At its September meeting, the Reserve Bank of Australia Board left the cash rate unchanged at 4.1% – the fourth time it has decided to hold rates this year.

The hold is the longest pause since rates started rising from a record low of 0.1% in May last year. Since then, the cash rate has been lifted 12 times in the steepest increase seen in the RBA’s history.

CoreLogic Research Director Tim Lawless said nationally, the housing recovery was now firmly entrenched.

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