Perth Maintains Top Spot in Australian Property Growth
As we closed out 2024, Perth once again led the nation in property market performance. While CoreLogic reported a slight 0.1% dip in residential property values across Australia for December, Perth bucked the trend with a 0.7% increase. This marks the 15th consecutive month where Perth has outperformed other capital cities. Adelaide followed with a 0.6% rise, while Brisbane and Darwin posted gains of 0.5% and 0.4%, respectively. Meanwhile, Melbourne and Sydney recorded the largest declines, falling by 0.7% and 0.6%, respectively.
Over the past quarter, Perth achieved a 1.9% increase in dwelling values and an impressive annual growth rate of 19.1%—the highest among all Australian capitals. These results highlight the resilience and appeal of Perth’s property market as we continue to see steady demand and strong growth opportunities.
Property Listings Show Seasonal Fluctuations
According to REIWA, the week ending 5 January 2025 saw 4,307 properties listed for sale across Perth. This represents a seasonal drop from 5,558 listings recorded four weeks earlier but a significant rise compared to the 3,633 properties available during the same week last year.
The time taken to sell a property has lengthened slightly, with the median days on market for both houses and units increasing to 15 days in December 2024. While this is five days slower than the same time last year, properties are still selling in a relatively short timeframe, reflecting the market’s balanced activity.
Stable Rental Market Reaching Affordability Limits
Perth’s rental market held steady in December, with the median rental price for dwellings remaining at $650 per week. While this represents an 8.3% increase compared to the previous year, it signals a period of price stabilisation. House rents remained unchanged at $670 per week, while units experienced a small rise to $650 per week.
REIWA data shows that rental stock availability has fluctuated. In the week ending 5 January 2025, there were 1,934 properties listed for rent—down from 2,257 four weeks earlier but up from the 1,825 rentals available during the same time last year. Despite the increase in vacancy rates to 1.9%, these figures remain well below the range of 2.5% to 3.5% typically seen in a balanced market. Leasing times have remained consistent, with properties taking an average of 15 days to rent—unchanged from both the previous month and December 2023.
The stabilisation of rental prices and higher vacancy rates suggest that the market may have reached a point where affordability pressures are limiting further increases. For tenants, this could bring some relief in managing living costs, even as rental conditions remain competitive.
Perth Stands Out as One of Australia’s Most Affordable Markets
Housing affordability across Australia continues to challenge buyers, with the Real Estate Institute of Australia (REIA) reporting the highest proportion of income required to meet loan repayments since records began in 1996. Nationally, 48.6% of the average household income was needed for mortgage repayments in the September 2024 quarter.
In Western Australia, however, affordability remains one of the region’s standout features. On average, families in WA allocated 39.8% of their income to mortgage repayments, which, while slightly up from 39.5% in the previous quarter, is still among the lowest rates in the country. Alongside the Northern Territory and the Australian Capital Territory, WA continues to offer some of the most accessible housing options in Australia.
In contrast, New South Wales remains the least affordable state, with residents spending 58.1% of their income on mortgage repayments. As Perth sustains its position as a more affordable and attractive market, it’s no surprise that both investors and families continue to see WA as a prime opportunity.
Looking Ahead
As we enter 2025, Perth’s property market remains a beacon of stability and growth. Whether you’re a homeowner looking to maximise your property’s value or an investor seeking opportunities, Perth continues to deliver strong prospects. At RE/MAX Extreme, we’re here to guide you through the market dynamics and help you make the most of the opportunities available.
If you’re curious about how these trends affect your property or want to discuss your next steps, feel free to reach out—I’d love to help you navigate Perth’s ever-evolving market.
(Source: Momentum Wealth, Real Estate Institute of Western Australia & Corelogic)