What can we expect from the Perth property market in 2024?
Perth property is expected to continue to lead the national market in 2024, with early predictions of 10% gains in house prices.
The latest CoreLogic Hedonic Home Value Index, released on January 1, shows Perth’s property market outstripped other Australian markets in 2023, recording the heftiest growth in dwelling values of any Australian capital city, with a surge of 15.2% – almost double the national average 8.1%.
In December alone, Perth sustained the highest change in dwelling values, increasing by 1.5% – almost four times the national average of 0.4% growth. And housing values have skyrocketed by 47.2% since the onset of COVID.
It comes as the Real Estate Institute of WA forecasts that Perth house prices will surge by another 10% in 2024, with rents also rising, albeit at a slower rate.
Mont Property Managing Director Matthew Podesta said last year’s achievements had put the Perth property market in prime position and the outlook for 2024 was extremely positive.
“What we experienced in Perth in 2023 has set us on an optimistic trajectory for 2024 and I expect continued growth, more listings and increased interest from buyers, sellers and investors,” Mr Podesta said.
“Last year presented a number of challenges, including continued interest rate rises and uncertainty with inflation and Reserve Bank of Australia decisions, yet our property market did not miss a beat.
“This shows that we continue to be one of the most resilient and robust markets in Australia, as more interstate and international buyers and investors monitor our market.”
REIWA data shows stock levels hit an all-time low at the end of December, with just 3648 properties listed for sale. The median selling time is eight days in Perth.
REIWA Chief Executive Officer Cath Hart said one of the key drivers for Perth property in 2024 would be population growth.
“Population growth is a significant factor behind housing demand,” Ms Hart said.
“WA recorded a 3.1% increase in its population in the year to June, the strongest growth rate in the country, according to the Australian Bureau of Statistics.
“That saw our population grow by nearly 87,000 people, with immigration and natural increases. That’s about 35,000 additional households in 12 months, if you assume there are 2.5 people per household.”
Ms Hart said despite 14,000 new home completions, there was a shortfall of more than 20,000 dwellings, putting upward pressure on prices in the established homes market.
She added that WA’s strong economy was driving population growth with people moving to WA for job opportunities. Low unemployment means buyers are more likely to be able to afford to purchase a home and adapt to interest rates increases, she said.
If you are considering your options or a possible sale in 2024, give the team at Mont at call for insight into the local market.