Perth Property Market Predictions 2024
As we near the end of the year and look toward 2024, it’s clear that the growth expected in our 2023 Perth Property Predictions article has become a reality.
In fact, Perth property market prices experienced high annual growths which will likely carry over to 2024.
“Demand is high and supply is low. This is unlikely to change in the future, maintaining upward pressure on prices. We expect to see median rents increase over the remainder of the year,” said REIWA CEO Cath Hart.
In this article, we highlight what we believe Perth property investors and landlords will see in the Perth property market in 2024.
Overview of Perth Property Prices
Perth’s property market has attracted strong investor activity, which ultimately led to a rise of 8.0% in median price growth for 2023.
Westpac forecasts another 8.0% annual price growth in 2024 for the Perth market.
Unlike other capital cities in Australia, prices don’t seem to be declining anytime soon in Perth. Demand will only increase due to the relative affordability of median house prices and high rental yields when compared to other metros nationally and the booming economy in Perth.
Even though interest rates are on the rise, it’s predicted they won’t halt the demand in Perth’s property market, and, by default, will continue to increase Perth house prices in the near term.
“The appetite for established property was likely to continue, with indicators suggesting WA’s population was still showing strong growth,” said Ms. Hart.
Here are the projections for Median dwelling price in 2024:
Perth Median House Price Predictions 2024
The Growth in Perth House Prices
The median house price is predicted to start the year with an 8.2% growth, jumping to 8.4% in June, then falling back 8.0%.
Nationally, Perth property prices growth take the lead at 8.4% but will be challenged by Hobart’s price increases expected in 2025. Still, these record highs are exceptionally high compared to the house prices in the past decade.
Median House Prices
Perth median house prices are predicted to increase to $690,000 by June 2024 – nearly $50,000 more than the recorded $638,000 in June 2023. With the respective percentages mentioned above, this median house price is expected to go marginally lower by the end of the year, but is predicted to then grow steadily into 2025.
The Growth in Perth Unit Prices
Perth unit prices are expected to increase in parallel to house prices, but not at the same velocity.
Starting 2024, unit prices are forecasted to grow 3.4%, while the June quarter will mark a marginal increase of 3.9%. The end of 2024 expected growth may slow slightly to 1.3%, but is expected to increase again by 2025.
Median Unit Prices
For median unit prices, the Perth property market is predicted to reach $459,000 by 2025.
Perth Rental Market Predictions 2024
Perth rental yields are the best in Australia when compared to other capital cities, the increasing rental returns are pushing tenants to consider buying property instead.
Low vacancy rates experienced in the property market is expected to carry over to 2024, which may lead to more tenants considering buying a Perth house. This, in turn, will contribute further to the increasing Perth property prices.
Here are the current and projected rental rates in the Perth property market:
Median Rental Prices
With the considerably low vacancy rate and the population growth, the median rental prices have shown significant increases in the past eight months, with the median house rent hitting $600 per week, which is a substantial jump from $550 recorded at the end of 2022.
Taking these numbers into consideration, the rental house price growth isn’t projected to decelerate any time soon, as demand is high in the property market.
The median rental unit prices, notably, are almost keeping pace with house prices– rising up to $550 in August 2023 from the $475 recorded at the end of 2022.
During the first half of 2023, the vacancy rate hit a record low of 0.7%, then this increased to 0.9%, giving hope to tenants that this rate might increase at a quarterly pace. Unfortunately, this rate dropped back to 0.7%. With the evident population growth, continued construction delays, and the attractive economy, house demand in the capital city will be ongoing for quite some time.
Reasons for the Exponential Growth in Perth Market Prices
If you look at the past financial year, you can detect multiple factors underpinning the rising performance in Perth. Here are some of the key reasons:
WA boasts a prospering economy that attracts many first-home buyers and renters.
Furthermore, this economic growth is expected to increase as it’s further supported by the 2023-24 state budget, which details that the economy will grow by 4.25%, making it the best upturn in the economy in nine years.
Population Growth and Low Unemployment
Population growth in major cities of WA is the highest in the country and is forecasted to go even higher, meaning that the demand in the capital cities and Perth house market will likely remain high for quite some time.
The low unemployment rates mean that there are more people able and are on the hunt in Perth’s property market. This will ultimately push the prices up further.
Since COVID-19, Perth house prices surged to a great extent.
Migration, which was stalled during COVID, is projected to rise in 2024, and with fewer travel restrictions and the reopening of the Chinese borders, foreign investment will likely contribute to the WA and Perth property market.
Housing Market in Regional WA
Perth isn’t the only capital city with low vacancy rates and house price surges.
Projections point to more than one capital city with similar growth rates in the future. Rent prices show similar leaps in these areas.
“Population growth isn’t limited to Perth, the regions are also seeing their populations increase,” says Ms Hart. “Regional buyers and tenants are facing the same constraints as those in Perth. And while building in Perth still has some challenges, it is harder in the regions and this is continuing to focus demand on established homes.”
Addressing housing supply
In addition to that, the government has announced several initiatives to uplift the shrinking house supply.
The value of getting a property appraisal in 2024
With so many external factors having a direct effect on Perth’s property market, deciding how much you should charge your tenants can be challenging. Ideally, you need to find the best trade-off between maximising profits and giving your quality tenants a rate that’s fair enough to retain them.
As a property investor or landlord, getting a professional appraisal can be a great way to navigate the ever-evolving real estate market in Perth.
A typical rental appraisal starts with property, target market, and location analysis, followed by rent calculations and a rental appraisal report that walks you through a step-by-step process to maximise your cash flow.
The beginning of 2024 is the perfect time to get a rental appraisal, though we encourage you to get one of these on a regular basis to keep up with market fluctuations.
Get a free rental appraisal now with zero obligation
If you want to come out as a winner from the changing economic landscapes and maximise your ROI in 2024, now is the best time to get a professional rental appraisal from the experts.
Reach out to us now to arrange an appointment for your free rental appraisal!