Perth Residential Property Market Insights – April 2022


With several significant announcements emerging across Australia’s real estate markets, we consider the largest trends impacting Perth buyers across the past month.

Trend 1 – CoreLogic figures set Perth on track for 10% growth predictions

CoreLogic figures revealed a strong rise in Perth’s Home Value Index in April, up 1.1% across the month. This marks a 2.4% increase over the three-month period to the start of May, setting the market on track to meet REIWA’s 10% growth projections for 2022. Rebounding migration, coupled with persistently low advertised stock and strong economic conditions, have been key contributors to the market’s growth. These favourable conditions are expected to continue, with the WA state government forecasting the economy to grow a further 3.5% in 2021/22 – the fastest pace in eight years (mid-year review, December 2021).

Trend 2 – Leading states for housing market sentiment revealed

While Momentum Wealth’s own Property Sentiment Survey has revealed Perth and Brisbane as the leading markets across Australia for investor sentiment, the shifting preference towards WA has been reinforced by the results of NAB’s Residential Property Index. NAB’s survey, which gathers the views of property professionals across the country, revealed that WA was the leading state for housing market confidence in the next 12 months. WA scored 78 points in their Residential Property Index, significantly higher than the national average of 49 points. Sentiment for the next 12 months was lowest in Victoria, with the State scoring well-below the national average at 30 points.

Trend 3 – RBA cash rate call marks first increase since 2010

Following significant speculation from Australia’s leading lending institutions, the Reserve Bank of Australia announced the first increase to official cash rates in over a decade in their monthly board meeting at the beginning of May. The announcement saw the cash rate rise by 25 basis points, taking official interest rates from historical lows of 0.1 to 0.35 of a percentage point.

The move comes after official inflation figures revealed a higher-than-expected rise in prices over the past 12 months (5.1%). While further increases to rates may see a cooling down in property market activity in the immediate term – particularly in Australia’s more expensive states – initial cash rate increases have historically resulted in short-term rises in buyer interest, with many seeking to fulfill purchase plans prior to further announcements.

Trend 4 – Median rents rise as Perth’s rental market continues to tighten

REIWA figures revealed a $10 rise in median rent prices across April, now sitting at $460 per week. This comes as listings remain well-below balanced levels. There were on average 2,387 properties listed for rent across April – 14% lower than the same period in 2021. Competitive rental conditions, combined with the relative affordability of property values in Perth, continue to support strong rental yields across the capital city. According to the latest CoreLogic figures, investors can currently expect to achieve average gross rental yields of 4.2% for houses, and 5.5% for units (CoreLogic Home Value Index, May 2022).


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