Perth Property Market Poised for Growth Amid Population Boom
Western Australia’s rapid population growth, fueled largely by overseas migration, has become a defining factor in Perth’s property market dynamics. Recent data reveals that WA’s population increased by 3.1% over the year to March 2024, making it the fastest-growing state in Australia. This surge has been driven by 65,000 new overseas migrants and a strong net interstate migration, levels not seen since the mining investment boom of the early 2010s.
This population growth, particularly in Perth and the northern suburbs, has intensified demand for housing, placing significant upward pressure on prices.
Median House Price Set to Reach New Heights
Perth’s property market is projected to end 2024 with record highs. The median house price could reach $750,000 by year’s end, reflecting an anticipated 25% growth over the year. Unit prices are also expected to see strong growth, with median values potentially surpassing $500,000. As of September, Perth’s median house price already reached $707,000, up 17.8% since December 2023 and nearly 30% higher than its previous peak in 2014. Similarly, the median unit price hit a new high of $470,000, a 14.1% increase since the start of the year.
Sustained Demand, Limited Supply
Western Australia’s growing appeal as a place to live is clear, with the population now exceeding 3 million. However, the building industry’s capacity remains stretched, meaning fewer new homes are reaching completion. This has kept demand high for existing properties, contributing to ongoing price growth.
Factors such as the upcoming federal and state elections and potential changes in interest rates could influence market sentiment temporarily. Buyers and sellers often wait for election outcomes, especially when housing policies are under consideration. Additionally, discussions around possible interest rate cuts may cause some buyers to pause in hopes of reduced borrowing costs.
Perth’s Rental Market Update
Perth’s rental market has also been impacted by population growth, with weekly rents for houses and units remaining high. The median weekly rent for dwellings and houses held steady at $650 over the September quarter, while unit rents rose to $640 per week—a 12.3% increase since December 2023. The vacancy rate, however, has risen to 1.6%, up from a low of 0.4% in March, indicating some relief for renters as new rental stock enters the market.
Regional WA Market Trends
In regional WA, population-driven demand is expected to result in varied growth. Bunbury and Busselton are projected to experience around 25% growth in median house prices by the end of 2024. Albany, Broome, Esperance, Geraldton, and Kalgoorlie are anticipated to see increases between 10% and 15%, while Karratha and Port Hedland are likely to experience more moderate growth of around 5%.
With Western Australia experiencing unprecedented population growth, housing demand in Perth and across the state is set to remain strong. This surge in demand underscores the appeal of WA as a place to live, driving both property values and rental prices higher as the market continues its upward trajectory.
Get in touch to discuss how the Brett White Team can help you navigate this exciting market and achieve the best possible outcome for your property.
Source: REIWA (Real Estate Institute of Western Australia)