Perth Maintains Its Lead in Property Growth
October brought yet another strong performance for Perth’s property market, with residential values rising by 1.4%—the highest among Australian capital cities for the 13th consecutive month. According to CoreLogic, the national property market grew by 0.3% during the month, with Perth outpacing cities like Adelaide (1.1%), Hobart (0.8%), and Brisbane (0.7%). Meanwhile, Canberra and Darwin recorded declines of 0.3% and 1.0%, respectively.
Perth’s property prices have surged by 4.1% over the past quarter and an incredible 22.6% over the past year, leading the nation in growth. For local homeowners, these consistent gains reflect a vibrant market and rising equity in their properties, offering a great opportunity for those considering refinancing or selling.
A Rise in Property Listings
The number of properties listed for sale in Perth is showing signs of growth. As of the week ending 27 October 2024, REIWA reported 4,929 properties on the market—up from 4,054 four weeks earlier. However, this is slightly below the 5,031 properties listed at the same time last year.
While listings have increased, the pace of sales has slowed marginally. Houses took an average of 11 days to sell in October, three days longer than a year ago, while units now take around 12 days to sell. This slight increase in time on the market could provide buyers with more breathing room, though the overall market remains competitive.
Rental Market Stabilising
The rental market in Perth continues to show signs of reaching its affordability limit. The median rent for dwellings held steady at $650 per week in October, representing a 10.2% increase over the past year. Rental prices for houses also remained stable at $650 per week, while units saw a slight rise to $612 per week.
At the same time, the number of rental properties on the market has decreased. By the end of October, there were 1,915 properties available for rent in Perth—down from 2,088 four weeks earlier but higher than the 1,719 listed at the same time last year.
While vacancy rates have increased slightly to 1.9%, they remain well below the levels typical of a balanced market, which sits between 2.5% and 3.5%. On average, it still takes only 16 days to lease a property, the same as last month but one day slower than a year ago.
For renters, this stabilisation may signal that prices have reached a limit, potentially easing some of the affordability pressures felt over the past year.
Supply Shortages Keep Upward Pressure on Prices
Western Australia’s housing supply challenges continue to influence property prices. The state recorded the strongest annual population growth in the nation at 3.1% for the March 2024 quarter, according to the ABS. During that period, Western Australia’s population grew by 23,118 people, creating a demand for approximately 9,066 new dwellings.
However, only 4,305 new homes were completed during the quarter, and with 340 dwellings demolished, this left a supply shortfall of around 5,101 homes. This growing deficit highlights the pressure on the market, with demand consistently outstripping supply.
This imbalance between supply and demand is a key factor driving Perth’s property price growth. For homeowners, this ongoing trend suggests that property values will continue to rise, offering strong potential for capital growth in the coming months.
Looking Ahead
Perth’s property market remains a standout performer in Australia, supported by limited stock, robust demand, and a growing population. Whether you’re considering selling, buying, or simply monitoring the market, the current conditions offer both opportunities and challenges.
At RE/MAX Extreme, we’re here to help you navigate these market dynamics, providing expert advice tailored to your property goals. As always, if you have any questions about your property’s value or the current market trends, don’t hesitate to get in touch—I’d be happy to discuss how these insights could work to your advantage.
(Source: ABS, Real Estate Institute of Western Australia & Corelogic)