Perth Residential Property Market Insights – March 2024

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Property vaules rise across the nation

Residential property values in Australia increased by 0.6% during March 2024. Perth, Adelaide, and Brisbane experienced the most significant monthly gains, with increases of 1.9%, 1.4%, and 1.1% respectively. In contrast, Darwin was the only city to see a decrease, with property values falling by 0.2%. Over the past quarter, dwellings in Perth surged by 5.6%, and they rose by 19.8% over the past year, marking the highest increase in the nation (CoreLogic, 2024).

Properties continue to sell at rapid pace

According to REIWA, there were only 3,591 properties listed for sale in the week ending 31 March 2024. This number represents a decrease from the 3,962 properties listed four weeks earlier and the 7,335 from the same week the previous year.

The average time to sell a house in the Perth market held steady at eight days in March 2024, which is five days quicker than the previous year (REIWA, 2024).

The graph below demonstrates the downward trend of stock availability within the Perth market.

Source: REIWA and Momentum Wealth Research

Rental vacancy rate reaches new record low

The median rental price for dwellings in Perth rose to $649 per week in March 2024, marking a 3% increase from the previous month and an 18% rise from the same period last year. While the median rental price for houses remained stable at $650 per week, the price for units increased to $600 per week during March 2024 (REIWA, 2024).

In the week ending 31 March 2024, there were only 1,850 properties listed for rent in Perth. This number represents an increase from the 1,683 properties recorded four weeks earlier but a decrease from the 1,950 properties listed at the same time last year. (REIWA, 2024).

The graph below shows the decline in the number of homes available for rent in the Perth market.

Source: REIWA and Momentum Wealth Research

In March 2024, Perth’s vacancy rate fell to a new record low of 0.4%, having remained around 0.7% for most of 2023 and 2024. This is a decrease from the previous low of 0.6% set in December 2022. Rental vacancies are far below the levels typical of a balanced market, which generally range between 2.5% and 3.5%. In March 2024, the median time to lease a property was 15 days, consistent with February and one day faster than 12 months earlier. (REIWA, 2024).

Population growth puts pressure on housing market

The latest statistics from the Australian Bureau of Statistics (ABS) indicate that Australia’s population increased by 2.5% over the 12 months to September 2023. Western Australia continued its growth trajectory, recording an annual population increase of 3.3%, the fastest in the country for the fourth consecutive quarter. It was followed by Victoria, with a 2.9% increase, and Queensland, with a 2.7% increase.

Western Australia’s population growth was driven by a significant uplift in international migration, which increased by 67,629 during the 12 months to September 2023. During the same period, Western Australia also recorded the second-highest rate of interstate migration, with 11,233 people, behind Queensland, which had 32,625. (ABS, 2024).

This strengthening population growth in Western Australia is expected to place further upward pressure on housing prices, as the supply of housing struggles to meet growing demand.

The graph below illustrates Western Australia’s strengthening population growth.

Source: ABS and Momentum Wealth Research