Perth Property Market – Prices, Trends, Forecast [September 2024]

Perth’s property market has shown significant strength throughout 2024, emerging as one of the top-performing capital cities in Australia. The market has been driven by strong demand, limited supply, and favorable economic conditions, making it a standout in the national housing landscape.

Perth Property Price Growth

Perth led the capital cities in price growth, with a notable 2.0% increase in home values in August 2024. Over the quarter, the city saw a 5.7% rise, and on an annual basis, Perth recorded an impressive 24.4% growth in dwelling values. The median dwelling value in Perth reached $785,250, marking a significant increase driven by the ongoing demand and tight supply conditions.

CoreLogic Home Value Index

Perth Property Market Trends

The strong growth in Perth’s property market is supported by limited housing supply, with total listings well below the five-year average. This scarcity of available properties has intensified competition among buyers, further driving up prices. Additionally, Perth’s market has seen robust interest from both local and interstate investors, drawn by the city’s relative affordability compared to other capital cities and its strong economic prospects.

Summary of housing values since the onset of COVID in March 2020 and relative to peak levels (onset of COVID calculated from March 2020).

Top 10 Greater Perth SA3’s with highest 12-month value growth – Dwellings

Top Regional WA SA3’s with highest 12-month value growth – Dwellings

Perth Property Market Forecast

Looking ahead, Perth’s housing market is expected to continue its upward trajectory, though the pace of growth may moderate as affordability constraints begin to impact buyer capacity. The strong demand, coupled with ongoing supply shortages, will likely keep prices elevated, but the rapid rate of price increases seen in 2024 may slow down as the market stabilizes.

The Reserve Bank of Australia’s ongoing adjustments to interest rates will likely play a crucial role in shaping market dynamics, as higher borrowing costs limit purchasing power for many buyers.

Here are some of the most recent forecasts by the big-4 banks in Australia:

• ANZ predicts a 5-6% increase in capital city property prices in 2024, with Brisbane expected to see the highest rise at 9-10%, Perth property values could go up by 1-11%, Sydney by 4-5%, and Melbourne prices by 2-3%.
• CBA forecasts a 5% rise in capital city prices, with some variations: Brisbane is anticipated to grow by 6%, Melbourne and Perth by 5%, Sydney by 4%, and Adelaide by 1%.
• NAB projects a 5.4% average increase across the capitals, with Brisbane expected to see a 6.5% rise, Perth and Adelaide by 6.2%, Melbourne by 5.5%, Sydney by 5%, and Hobart remaining flat.
• Westpac expects a 6% growth across the combined capitals, with Perth leading at 10%, followed by Brisbane at 8%, Sydney at 6%, Adelaide at 4%, and Melbourne at 3%

Oxford Economics recently released property forecasts predicting where house prices will be in three years.

Conclusion for Homeowners

Perth’s property market stands out as a top performer in 2024, characterized by strong price growth and high demand. While the market is expected to remain robust, the extraordinary growth rates may temper slightly as affordability issues and supply constraints come into sharper focus. For homeowners and investors, Perth continues to offer strong potential, though careful consideration of market conditions will be crucial moving forward.

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