Overview: Perth has distinctly emerged as the leader in national house price growth, witnessing an 8.6% increase in its median house price, as per the latest report from Ray White.
Detailed Insights: In numerical terms, Perth’s average house price reached $660,790 this September, which surpasses the national growth average of 6.1%. This rate of growth has not been observed since July 2022. Adelaide closely followed, with its median house price ascending 6.7% over the last year, achieving a figure of $723,536. Meanwhile, both Sydney and Brisbane reported increases of 6.6% and 6.5% respectively. To put into perspective, Sydney’s house prices, now averaging $1.48 million, are currently double that of Perth’s.
In the realm of unit prices, both Brisbane and Adelaide outperformed their counterparts, registering rises of 6.8% and 6.9% respectively. As for Perth, its median unit price stands at $445,555, marking a 5.6% year-on-year growth, although a slight 0.5% decline from the preceding month was observed.
In a noteworthy mention, despite showcasing a significant monthly growth, Melbourne’s annual increase in median unit prices was relatively modest at 2.1%.
Expert Commentary: Nerida Conisbee, Chief Economist at Ray White Group, in her discussion with WAtoday, expressed optimism regarding Perth’s property market. Despite a recent 0.7% decline in Perth’s house prices, Ms. Conisbee anticipates consistent growth driven by the robust state economy. She identified several driving factors, notably population growth, wealth augmentation in WA, and the significant economic shift from iron ore to green energy minerals.
She further elaborated, “The minor decrease appears to be an anomaly rather than a consistent trend. With WA’s economy in robust health, and the ongoing transition from iron ore to green energy minerals, one can anticipate continued growth in Perth’s housing sector.”
Additionally, Ms. Conisbee highlighted the relative affordability of Perth when compared to other capital cities, making it a lucrative market for potential homeowners and investors. She stated, “The value proposition in Perth, especially for younger investors, is compelling. In cities such as Sydney, many are finding themselves priced out, whereas in Perth, the same investment can secure a significantly larger property.”
She concluded by emphasizing Perth’s attractiveness for investors, particularly those looking at properties priced below the $750,000 threshold. Given the limited availability of such properties in other capital cities, Perth offers promising opportunities.
In summary, with its economic strengths and property market trends, Perth stands out as a key player in the national real estate scenario.
