Perth’s median house price is on track to achieve growth of more than 20% over 2024, according to REIWA’s latest property market quarterly update.
REIWA CEO Cath Hart (pictured above) said that if the market continues on its current trajectory, Perth’s median house sale price could reach $740,000 by the end of the year.
“Demand remains strong, houses continue to sell in record time and prices keep rising,” Hart said.
As of June, Perth’s median house price was $668,000, already 11.3% higher than at the end of December 2023 and 22.6% higher than the previous peak of $545,000 set in 2014.
The median unit sale price has also shown significant growth, increasing by 8.3% since December to reach $445,000 at the end of June.
“After seeing little growth for most of 2023, the median unit sale price has recorded 8.3% growth since December to reach $445,000 at the end of June,” Hart said. “This is just $5,000 below the previous peak of $450,000 set in 2014.”
The market’s growth is driven by strong population increases and constraints in the building industry. Western Australia recorded 3.3% population growth in the year to December, adding about 79,000 net arrivals through overseas and interstate migration, which significantly boosts the demand for housing.
“While new home starts are being now completed in quicker timeframes, Perth’s overall housing completions remain low, so we have an ongoing imbalance between supply and demand,” Hart said.
Perth’s median rent prices have reached record highs but remained stable over the June quarter.
The median dwelling rent price was $650 per week at the end of June, unchanged from March but 8.8% higher than December 2023.
The rental market has seen an increase in tenant household sizes and a rise in the number of rental listings, indicating a slight easing in the market.
“The rental market is also benefiting from the completion of investor-owned new builds, which is adding to rental supply,” Hart said. “Supply will continue to increase as more of these homes are completed in the coming months.”
Regional areas are also expected to see growth, particularly in the South West. However, rental markets in the regions are more constrained and less likely to benefit from new supply in the short term due to building challenges.
“Median house sale prices across most of the regions are likely to see growth over the remainder of 2024, with the strongest growth expected to be in the South West,” Hart said.
REIWA will publish its regional June quarter report in late August, providing further insights into the housing market trends across Western Australia.
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