What’s in store for the summer property market?

25 November 2023

The Perth property market is showing no signs of slowing down this summer, with speculation of a brief festive break – if at all.

Perth is now one of the hottest property markets in the country and real estate analysts are forecasting that prices will surge to new heights in 2024.

Mont Property Managing Director Matthew Podesta said unprecedented demand, tight supply, high population growth and super low vacancy rates meant Perth’s property market was likely to strengthen over summer.

“Traditionally, the property market quietens down over the Christmas and New Year period as people take a well-deserved break with their families, make time to decompress after a busy year and head off on holidays,” Mr Podesta said.

“But the current momentum of the Perth property market is pointing to the fact that any festive break this year could be short-lived with buyers feeling a greater sense of urgency to find a new home.

“The situation has been further compacted by high interest in homes in WA from interstate and overseas investors, who are seeing the lifestyle benefits of our beautiful city and greater affordability, compared to bigger capitals like Sydney and Melbourne.”

Mr Podesta said the success of the local property market was evident in a recent CoreLogic report, which showed strong growth in property values in almost all Perth suburbs.

CoreLogic’s Mapping the Market Report shows that of the 287 Perth suburbs where house prices were analysed, just one suburb – Mount Hawthorn – experienced a fall in the past quarter with a 0.3% drop. For units, six of the 98 suburbs examined sustained a drop in values in the past quarter, with a median loss of 6.1%.

Across Perth’s southern riverfront, the Mapping the Market Report shows most suburbs in the Mont neighbourhood sustained median house value increases between 6% and 12% in the past year.

In Booragoon house prices surged by 10.6% for the year, Mount Pleasant rose by 9.2% and Applecross grew by 7%. In Bicton, house prices rose by 6.8%, Melville by 6.6% and Attadale by 6.5%. Alfred Cove house prices increased by 4.9%, while Ardross values rose by 2.6%. In neighbouring East Fremantle, the median house price sustained 14.1% growth in the year.

CoreLogic Head of Research Eliza Owen said the Australian property market was showing great diversity, and Perth was now the strongest market in the country.

“At one end of the spectrum, suburb-level analysis reflects the extraordinary growth trend across cities like Adelaide, Perth and Brisbane,” Ms Owen said.

“In these cities, total listings levels are low, city-wide capital growth is running a bit over 1% per month, and migration trends from both overseas and interstate favour more housing demand.”

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