Perth property market data, trends, forecasts

Perth property market news

The Perth property market has demonstrated remarkable resilience in the face of Australia's housing downturn. Property values soared +25.9 per cent from the Covid trough to July 2022 peak, and while most other markets have since seen significant price corrections, Perth's declines ended up being very minimal according to the latest CoreLogic data. In fact, prices have in fact been exploding once again to reach new all-time highs and place Perth as the country's standout performer. 

Perth property prices - September 2024

Boasting both relative affordability and a uniquely insulated economy, rising interest rates had less of an impact on the Perth housing market than many of the country's other capital cities. As a result, the Western Australian capital weathered the property downturn better than anywhere else and is now dominating in terms of monthly growth. 

Nationally there has been a shortage of stock on the market, and nowhere has that trend been stronger than in Perth. Compared to 12 months ago, new listings for September were up +9.4 per cent but total stock remains down a full -14.5 per cent. That lack of supply is being met with an uptick in sales. Home sales were up +7.9 per cent year-on-year for September, so the balance looks to be weighted heavily in the corner of sellers. 

Perth homes are selling fast, too. Days on Market (DOM) is the lowest of any capital, sitting at a lightning-fast 11 days, the same level as 12 months ago. By comparison, the national average is closer to 30 days.

Perth house prices

Australia's housing boom of 2021 was very much house-led, so it stands to reason that houses would be hit harder than units in the downturn that followed. Surprisingly, that wasn't the dynamic in Perth, where houses continued to outperform. Now in 2024, houses have been edged out by units, but only just. 

Perth house prices - September 2024

The Perth median house price surged by another +1.6 per cent in September, bringing quarterly change right up to +4.6 per cent. Annual growth has also soared, currently sitting at a remarkable +24.0 per cent for the year. These figures exemplify the most robust housing market currently in Australia.

Perth unit prices

While the Perth unit market hasn't quite matched the level of growth seen with houses, it's still delivered incredibly strong returns throughout 2023 and into 2024. 

Perth unit prices - September 2024

Perth's median unit price increased by +2.0 per cent in September, bringing the quarterly change to +6.2 per cent. On an annual basis, unit price growth sits at +25.2 per cent, lifting the median price just over $570,000.

Perth property market forecast 2024-25

After such historic growth over the past two years, economists say a market correction was inevitable. Perth enjoyed relative insulation from the downturn, though, and growth returned with strength in 2023. The question is, can it continue in 2024 and beyond? 

NAB's latest Perth house price forecast suggests values could increase by +23.1 per cent over 2024 with a further +8.3 per cent to come in 2025. 

Westpac's Perth real estate forecast also predicts another +20.0 per cent upswing in 2024 and +4.0 per cent due in 2025.

Big four banks' Perth home price forecasts 2024-25

Whether or not this growth can be achieved still largely depends on the supply and demand dynamic over the rest of the year. Interest rates had extensive impacts on the market and, while there is now a period of stability, the high rate environment is still causing stress for buyers and homeowners alike. 

Currently, the RBA sits at 4.35 per cent, a long way up from the emergency-level 0.1 per cent rate borrowers were enjoying until May 2022. The banks mostly expect there will be no further hikes, with rate cuts to begin in the later stages of 2024 or early in 2025.

Big four banks' cash rate forecast 2024-25

Now aligning with the banks' forecasts, SQM Research made predictions in late 2023 of another positive year ahead for growth in Perth. Across four possible scenarios, SQM predicted anywhere between +5 per cent to +9 per cent growth for the WA capital.

What are industry experts saying about the Perth property market?

Michael Yardney - Director of Metropole Property Strategists

"Australian home values moved through a 15th straight month of growth in April with CoreLogic's national home value index rising by 0.1%, on par with the pace of gains recorded in February and March.

The Perth housing market seemed to be running its own race with a quarterly rate of growth and home values rising to 6%, the largest increase since the first quarter of 2021 when interest rates were at generational lows.

Despite such strong growth conditions, Perth's median value remains at the low end among the capital cities. That's a legacy of the long period of weak housing conditions prior to 2019.

With values rising this rapidly, it won't be long before Perth records a higher median dwelling value than Adelaide."

Dr Nicola Powell - Chief of Research & Economics at Domain

"What we have is very much a multi-speed market across our capital cities. While price rises in most capital cities are losing momentum, in Perth and Brisbane, they’re doubling. Perth is having another heyday, reminiscent of the mining boom, and Queensland is still seen as a strong lifestyle location.

Both of those markets are under-supplied with property and have had strong population growth, which is, at the same time, increasing demand. In Perth, there’s a 22 per cent lower supply than last year and 43 per cent lower than its five-year average."

Perth house price graphs and charts

The latest Perth property price graph from CoreLogic's monthly chart pack clearly shows the rapid acceleration and sustained highs of the Perth property market before steadying over 2022 and ramping back up over 2023 and 2024.

The massive upward surge from mid-way through 2020 follows a rocky period of stagnation Perth, becoming one of the most explosive times of growth in Australian history. Since that point prices have been relatively unaffected when compared to other markets.

Looking at the wider context of the housing market over time, we can see in this 30-year house price growth chart that Perth's recent gains have shot prices back up to record levels.

The minor declines over 2022 pale in comparison to the surge in growth seen across Perth since the pandemic began.

Perth property info for sellers

Selling data for Perth property looks particularly strong as listings remain persistently low, home sales hold steady and Days on Market (DOM) continues to be well below the other capital cities.

Property investing in Perth

The Perth property market has always presented a unique set of pros and cons for investors as such an isolated city. Currently, Perth is looking promising for investors as rental vacancies are around the lowest in Australia, rents continue to increase rapidly, and unit prices are on the more affordable side.

Top 5 suburbs for Perth investors

Canstar recently detailed some of the top suburbs where Perth property investors could find strong potential. 

The report noted that "As the cheapest capital city for houses, Perth offers some attractive options for people to buy affordably in locations with future growth drivers."

Top suburbs for investors to buy in Perth

"The Perth market has broad strength but the cheaper areas have the greatest momentum – and most of our Top 10 selections have median house prices well below $500,000, as well as identifiable growth drivers.

The other common feature is exceptionally low vacancy rates – all 10 locations are between 0.2% and 0.5%."

Looking to invest in Perth property? 

• Check out our list of best suburbs to invest in Perth for 2024
• Dig into some expert advice on where to find the top 10 suburb picks for Australian investors
• Find out the Perth suburbs with the highest rental yield