As we dive into 2024, Holdsworth Real Estate reflects on the accuracy of our 2023 predictions and forecasts the future trends of the Perth property market.
A Reality of Growth
2023 witnessed the Perth property market experiencing high annual growths, a trend we accurately predicted last year. As we look toward 2024, these growths are expected to continue, fuelled by the dynamic balance of supply and demand.
Insights from REIWA CEO
Cath Hart, CEO of REIWA, emphasizes the ongoing pressure on prices due to the high demand and low supply. This scenario is expected to elevate median rents throughout the year, indicating a robust market.
A Peek into 2024
The Perth property market is set to remain strong, with key highlights including:
- Perth’s Median Price Growth: A rise of 8.0% in 2023, with Westpac forecasting another 8.0% for 2024.
- Demand vs Supply: High demand and low supply are pushing prices up, a trend differing from other Australian capitals.
- Population Growth: WA’s strong population growth is likely to keep driving the property market.
- Interest Rate Impact: Rising interest rates are not expected to dampen the demand significantly.
Median Dwelling Price Projections
- Starting at 8.2% growth in early 2024, peaking at 8.4% in June, and settling at 8.0% by year-end.
- Expected rise to $690,000 by June 2024, before a slight decrease.
- Predicted growth of 3.4% at the start of 2024, peaking at 3.9% in June, and slowing to 1.3% by the end of the year.
- Forecast to reach $459,000 by 2025.
The Rental Market
Perth’s rental market remains strong, with low vacancy rates and high rental yields. The median house rent is projected to hit $600 per week, a significant increase from the previous year.
Factors Driving Growth
- Economic Upswing: WA’s economy is thriving, supporting both first-home buyers and renters.
- Population Growth and Low Unemployment: High population growth and low unemployment rates in WA are maintaining the demand.
- COVID-19 Impact: Post-pandemic migration trends and the reopening of borders are likely to bolster the property market further.
Addressing Housing Supply
The government has announced initiatives to tackle the shrinking house supply, vital for market stability.
The Importance of Property Appraisal
In such a dynamic market, regular rental appraisals are crucial for property investors and landlords to navigate price fluctuations effectively.
We invite property owners to take advantage of our free, no-obligation rental appraisal service. It’s an optimal way to adjust to the changing market and maximize your return on investment.
Contact Holdsworth Real Estate today for your professional rental appraisal and step confidently into 2024’s property market.