The Real Estate Institute of Western Australia (REIWA) has highlighted the potential for a significant 20% increase in Perth’s median house sale prices by the end of the year, according to its 2024 property market quarterly update.
REIWA’s 2024 update showed a robust uptick in Perth’s housing market.
“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,” said REIWA CEO Cath Hart (pictured above).
The median house sale price has surged 13.6% over the 12 months to March, reaching a new record of $625,000.
“If the market continues to grow as it has been, 20% growth is achievable between January and the end of 2024,” Hart said.
See REIWA’s LinkedIn post.
Current market conditions suggest ongoing growth.
“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 said.
The robust Western Australian economy is also contributing to house price increases.
“Unemployment is low, which boosts consumer confidence as well as people’s ability to buy a home and manage a mortgage,” Hart said.
Hart also noted the potential positive impact of a forecasted interest rate cut on the buying power in WA.
The unit market in Perth has also seen appreciable growth, with the median unit sale price increasing 3.4% over the March quarter to $425,000.
“We have seen demand for units increase in the past few months,” Hart said.
Despite many preferring houses, units provide a more accessible entry point into the market, which is crucial as house prices continue to rise.
The rental market mirrors the sales market with strong growth. The median dwelling rent reached a new peak of $650 per week at the end of March, reflecting an 8.3 percent increase from December and an 18.2 percent rise year-over-year.
Regional Western Australia is also experiencing the ripple effects of strong population growth.
“Lifestyle remains a strong drawcard for the regions and the South West is also benefiting from the changing nature of mining work,” Hart said.
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