Navigating Perth’s Property Market in 2024: Trends, Insights, and Opportunities
The Perth property market has been booming. With strong demand for tenants seeking short or long-term housing, investing in the property market in Perth presents a lucrative opportunity for landlords seeking to increase their revenues and get a steady stream of income from their rental property business.
An Overview of Perth’s Property Market
Based on recent data from the CoreLogic Daily Home Value Index, Perth’s property market witnessed a day-on-day change of 0.12% and a year-on-year increase of 21.2%, marking a noticeable upward trend for the property market in the region.
Even with the pandemic and rising inflation rates slowing down the overall property market growth in Australia, Perth has proven to be resilient during the most challenging economic downturns.
Some of the key insights in the Perth property market include:
- Housing Demand Surpasses Supply: The number of people seeking rentals in Perth exceeds the available supply of houses and units in Perth, which is on par with the trending increase in property sales and rental values.
- Prices Are Affordable Despite Growth: While house prices have consistently increased in recent months, the prices remain well within the national average.
- Stronger Trend in Regional Market is Surging: Regional markets, such as regional WA, have witnessed higher growth rates in comparison to capital cities. This tells us that home buyers and potential tenants are increasingly getting more interested in regional areas.
- More Homes Are Being Sold: Despite the increase in housing values and the higher interest rates, the number of houses sold in Perth remains higher than the national average, signalling the region’s attractiveness to potential interstate and local buyers.
Perth House and Unit Prices
Property prices have showcased significant growth in the past year. When it comes to house values, prices jumped by 1.6% in January for an overall annual increase of 16.6% in the past year.
At a median house price of $677,000, Perth stands as a great location for landlords, prospective buyers and tenants that combines reasonable costs with quality housing. In other locations, prospective tenants and buyers would need to shell out a premium price to match the quality of housing in Perth.
Property Market Perth Forecast 2024-2025
Current and historical data suggests that Perth’s property market is expected to continue growing in the foreseeable future. This is driven by economic stability, favourable climate, resource-based job opportunities, and changing lifestyle preferences for residents of other cities. Additionally, more than 80,000 immigrants immigrated to Perth in the past year, further driving the housing demand in the region.
The lower-priced segment, in particular, witnessed near-record rates at +7.2%. In March 2024, dwelling sales also boomed, with a +5.1% year-on-year growth rate. Based on these findings, current forecasts for Perth’s property market suggest sustained growth thanks to population expansion, declining living costs, and a possible decrease in interest rates.
Long construction completion times, coupled with the skilled labour shortages, mean that eastern state investors will put additional pressure on prices in Western states in the upcoming year.
Perth Property Market: Industry Experts Insights
“Since the commencement of the upswing, capital city house values have surged 11.0% higher while unit values are up 6.9%. It seems that most Australians are willing to pay a higher premium than ever for a detached home,” CoreLogic’s research director, Mr Tim Lawless said.
“Despite the ongoing cost of living pressures, high interest rates, low consumer sentiment and affordability constraints, homes are still selling. Housing demand has been buoyed by high migration, but also tight rental markets that have probably incentivised renters to transition towards home ownership if they can afford to do so,” Mr Lawless added.
“Updated figures for December show 4.3% growth over the quarter and preliminary figures for March are sitting at 4.2%. We can expect that to increase as more properties settle,” REIWA CEO Cath Hart said.
“If the market continues to grow as it has been, 20% growth is achievable between January and the end of 2024, as well as price trends, we look at a range of figures when preparing our forecasts and the data suggests the significant imbalance between supply and demand will remain in 2024, maintaining the upward pressure on prices,” Hart added.
Opportunities for Perth Property Sellers
Property sellers in Perth have an excellent opportunity to capitalise on the increasing demand for housing in the region. The average selling and rental values are increasing every month, enabling sellers to increase their revenues.
Top Suburbs for Perth Investors
If you’re considering investing in the Perth property market, knowing which suburbs provide the best ROI is a good first step to start looking for houses or units. Each suburb in Perth offers a unique set of advantages that makes it attractive for potential buyers, but as an investor, you need to look at the numbers to make informed decisions.
If your goal is to rent your property, you should ideally look for a property within the most attractive rental suburbs. Based on recent data from Reiwa, Baldivis, Rivervale, Maylands, and East Perth are the best suburbs for rental property investment. On the other hand, the favourite suburbs for potential home buyers were Baldivis, Perth, Rockingham, Subiaco, and East Perth.
In terms of annual change, the following 5 suburbs witnessed the most significant growth, based on research by NAB:
- Rockingham
- Cockburn
- Armadale
- Kwinana
- Serpentine-Jarrahdale
Discover the best suburbs and rental yields for an investment property in Perth’s metro.
Final Words
To recap, Perth’s property market has displayed consistent growth in the past months, despite rising interest rates. With relatively affordable housing and inflation rates decreasing, we expect continued growth as the interest rates decrease and buyer confidence increases.
Further, with selling and rental values on the rise, investors seeking to maximise their return on investment should definitely consider Perth for long-term growth.
Contact HERE Property to discuss your investment options now!
