Perth’s property market continues its upward trajectory, with REIWA forecasting a potential 25% growth in median house sale prices for 2024. Unit prices are also expected to see significant growth, potentially exceeding 20% by year’s end.
Record-Breaking Median Prices
Driven by strong demand, Perth’s median house sale price reached $707,000 at the end of September, already surpassing the previous peak of $545,000 set in 2014. Unit prices have also reached record highs, hitting $470,000 in September.
Factors Fueling Growth
REIWA CEO Cath Hart attributes this growth to a combination of strong population growth fueled by overseas migration and ongoing constraints within the building industry. These factors contribute to high demand for established homes.
Potential Headwinds
While the market outlook remains positive, REIWA identifies potential factors that could influence the rate of growth:
- Upcoming Elections: Both federal and state elections in early 2025 could introduce uncertainty and temporarily slow market activity as buyers and sellers await policy outcomes.
- Interest Rate Speculation: Ongoing debate surrounding potential interest rate cuts by the Reserve Bank may lead to some buyer hesitation.
Rental Market Moderation
Despite an increase in median unit rent prices, Perth’s rental market shows signs of easing. Increased supply has contributed to a rise in vacancy rates, and the market appears to be approaching an affordability ceiling, suggesting more moderate rent growth in the coming months.
Regional Market Variations
REIWA anticipates varying growth rates across regional WA:
- Strong Growth: Bunbury and Busselton are predicted to see annual growth of around 25%.
- Moderate Growth: Albany, Broome, Esperance, Geraldton, and Kalgoorlie are expected to experience growth between 10% and 15%.
- Slower Growth: Karratha and Port Hedland may see more limited growth, up to 5%.
REIWA also predicts variations in regional rent price growth, with potential declines in Karratha, Port Hedland, and Broome, while other regional centers may see rent increases.
Stay Informed
REIWA will continue to monitor market trends and provide updated forecasts. Stay tuned for their upcoming regional September 2024 quarter report in late November for more detailed insights.
This market update provides a concise overview of Perth’s property market dynamics, highlighting key trends and potential influences. For more detailed information and personalized advice, you can contact Holdsworth Real Estate.