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

Perth remains the strongest performer among Australia’s capitals, with home values increasing by 1.1% in November 2024. Over the past quarter, values rose by 3.0%, maintaining an annual growth rate of 21.0%. This performance highlights Perth as a key growth market despite signs of a broader market slowdown nationwide.

Perth Property Price Growth

The median dwelling value in Perth is now $808,090, reflecting consistent monthly and quarterly gains. However, the pace of growth has eased compared to earlier in the year, with quarterly growth down from 6.7% in June.

CoreLogic Home Value Index

CoreLogic Home Value Index, Released on December 1, 2024

Perth Property Market Trends

Increased Stock Levels: Listings in Perth surged by 33% during spring, though total listings remain below historical averages. This indicates a gradual rebalancing of supply while maintaining seller advantages.

Rental Market: Perth continues to lead rental growth among the capitals, with annual house rent growth at 8.7% and unit rents growing by 9.7%.

Demand Drivers: A combination of strong population growth and limited housing supply has sustained demand, supporting both price and rental increases.

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

Perth Property Market Forecast

While growth momentum has slowed, Perth’s market remains favorable due to its affordability relative to other capitals, strong rental yields, and sustained demand. Further price growth is likely in 2025, though at a slower pace as affordability challenges and increasing stock levels begin to impact buyer behavior.

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.

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Conclusion for Homeowners

Perth’s property market continues to provide significant opportunities for sellers, with high growth rates and strong demand making it a standout performer. Sellers should act strategically, as the pace of gains may moderate in the coming months.

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