Perth Continues to Lead Australia in Property Growth
Perth has once again demonstrated its strength in the national property market, continuing to outperform other capital cities for the 12th month in a row. In September 2024, property values in Perth rose by 1.6%, making it the top-performing capital city in the country. Adelaide followed with a 1.3% increase, while Brisbane saw a 0.9% rise. On the other hand, Hobart and Canberra experienced slight declines, with property values falling by 0.4% and 0.3%, respectively.
Over the past quarter, Perth’s property market has grown by 4.7%, and over the last year, we’ve seen an impressive 24.1% increase in property values, solidifying Perth’s position as Australia’s top-performing property market. For local homeowners, this continued growth provides confidence in the strength of the market and the potential for further capital gains.
Rising Listings as Market Activity Picks Up
According to REIWA, there were 4,054 properties listed for sale in Perth in the week ending 29 September 2024. This is an increase from the 3,637 listings recorded four weeks earlier, although still down from the 4,895 properties available at the same time last year.
In terms of sales activity, the average time to sell a house in Perth stretched slightly to 10 days in September, which is just one day longer than a year ago. For units, the average selling time remained steady at 9 days. This consistency reflects a healthy market, where properties are still moving relatively quickly despite slight increases in time on market.
Rental Prices Hold Steady, Vacancy Rates Rise
Perth’s rental market has also seen stability in pricing, with the median rental price remaining unchanged at $650 per week in September 2024. This marks a 12.1% increase compared to the same time last year, reflecting the ongoing challenges renters face. The median rental price for houses stayed firm at $650 per week, while unit rents remained stable at $600 per week.
While rental prices have stabilised, it’s clear that affordability pressures are prompting renters to explore more affordable housing options, such as shared accommodations. This shift highlights how tenants are adapting to manage the rising costs of living in Perth.
As of the week ending 29 September 2024, there were 2,088 properties listed for rent in Perth, down slightly from the 2,191 recorded four weeks prior but higher than the 1,679 available at the same time last year. This slight reduction in available rental properties has kept the market competitive, even as vacancy rates ticked up to 1.6%—the highest level since August 2020. Despite this increase, rental vacancies remain well below the balanced market range of 2.5% to 3.5%. In September, it took a median of 16 days to lease a property, which is three days faster than the previous month but still slightly slower than 12 months ago.
Australian Housing Loans See Continued Growth
Recent data from the ABS, released in August 2024, shows that the total value of new housing loans in Australia increased by 1.0%, reaching $30.4 billion. This represents an annual growth of 23.0%, highlighting continued confidence in the property market across the country.
In terms of owner-occupier loans, Western Australia saw a modest 0.5% increase in August, the lowest rise among the states, but still a positive sign for our local market. Interestingly, while other states like Queensland and South Australia posted larger increases in investor finance, Western Australia saw an 8.3% decline. However, despite this slight dip, investor interest in WA remains strong, with the percentage of investor finance having more than doubled since the market low of 2019, thanks to the region’s attractive rental yields and growing market potential.
Outlook for Perth’s Property Market
Looking ahead, Perth’s property market is in a strong position, supported by steady demand, limited stock, and robust growth in both sales and rental prices. As we move through the final quarter of 2024, I expect Perth to remain a key player in the national property scene, offering plenty of opportunities for both homeowners and investors alike. With rental yields high and property values continuing to rise, the city remains one of the most appealing markets in Australia.
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(Source: Real Estate Institute of Australia & Corelogic)