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Perth's housing market is booming.
Property values in the Western Australian capital grew 21% between November 2023 and November 2024, according to CoreLogic Research's most recent Hedonic Home Value Index. That's faster than any other major metropolis in the nation. And the numbers are continuing to rise. In the last quarter, prices increased 3%, compared with the previous three-month period; 1.1% month-over-month.
That's good news for sellers. But buyers and brokers alike will have to act fast if they want in on the market.
"There's a lot more urgency for deals that are on that side of town. We have to move quickly," Jake Sgarbossa, property finance broker and head of commercial at real estate brokerage My Mortgage Freedom, told Australian Broker.
The Melbourne-based broker said homes in Perth typically stay on the housing market for just 12 days.
"That's the fastest turnaround time for auction deal flows. The national average is 30 days," Sgarbossa (pictured above left) said. "Things are not staying on the market. People want to snap them up."
Other times, there will be three or four offers on a single property, said Darren Coff, broker and managing director at Investure. "Brokers need to be on point and have the ability to service their clients quickly, or they're just missing out,” he said.
Aside from the necessary speed, there's also the distance. Perth is one of the most isolated capital cities in the world. Oftentimes, Australian brokers are based in other cities.
Gold Coast-based Coff, whose brokerage works in both residential and commercial real estate nationally, said the majority of his clients are not located in Queensland.
"It's about having systems and processes in place, getting referral partners who are based in other areas, having those strong relationships with lenders so you can call them up when you need an approval immediately," he said. "The market is not accepting extensions anymore."
Melbourne-based broker Alma Čustović said her process frequently involves partnering with local buyer agents on the ground in Perth, in addition to researching the area thoroughly.
Sgarbossa added that Google reviews, word-of-mouth advertising and referrals also helps grow the business when he's not always able to make the four-hour flight to Perth.
"It's all about being on the customer journey with them," he said.
Perth's developing economy, increased migration and comparatively cheaper housing options have all contributed to the growth. At the same time, prices in Perth have been relatively flat for the last 10 years.
"So the market was really playing catchup," said Damian Collins (pictured above right), founder and managing director of Perth-based real estate investment firm Momentum Wealth.
Collins added that much of the growth was driven by the simple economics of supply and demand: too few houses and too many people. In fact, between 2023 and 2024, the population of Perth grew by 2.8%, according to the latest data provided by the government of Western Australia. Collins estimates, then, that there's a need for at least 32,000 new homes a year.
"But only about 16,000 new homes were built," Collins said. "The building industry can't keep up with the demand. A shortage in stock in the market means prices will continue to rise."
Collins said there's been a fair number of international arrivals in recent years. But many of the new arrivals also come from other states, chasing the nice weather, or looking to relocate to a place where the cost of living is less expensive.
"In Perth, homes are a lot more affordable, so people from other states come in and are spending above market, above what locals would pay," Sgarbossa said.
Some critics argue that Perth's housing boom — or the chance to invest in low-cost housing in the western state — has passed. But others say there's still a lot of opportunity in the market.
"There's still a pain point; people still need homes and they're looking for affordable price points," said Nathan Smith, general manager at Birdie Wealth, a mortgage brokerage in Miranda, New South Wales. "And many people still want to retire independently of the government."
Collins agreed, there's no shortage of deals to be made in Western Australia. His firm is anticipating home prices will increase another 9% to 11% in the coming 12 months. In addition, there's opportunity for brokers to help clients move locally, refinance or renovate, he said.
"Perth has good years ahead," Collins said. "Perth is fundamentally in good shape. It's got a solid economy, strong population growth and there's still a housing shortage."
