Perth Residential Property Market Insights – May 2022


As we approach the halfway mark of 2022, we analyse the biggest trends impacting Perth’s property market, and what they mean for the months ahead.

Growth figures confirm shift away from Sydney and Melbourne

Across Australia, we continue to see a shift away from the nation’s largest state capitals, with both Sydney and Melbourne recording a decline in property values in CoreLogic’s May Home Value Index (-1.0% and -0.7% respectively). By contrast, Adelaide (1.8%), Brisbane (0.8%) and Perth (0.6%) recorded the largest growth in values across the month. This reflects the findings of our latest Property Sentiment Report, which confirmed seven in ten active investors were looking towards Perth or Brisbane as the most favourable locations to invest in 2022. The latest statistics take the quarterly increase in property values for Perth to 2.7%, with CoreLogic predicting a further 3-5% growth for the remainder of the year, underpinned by WA’s strengthening economy and relative housing affordability.

Median rents increase across Perth in May

Perth median rental prices increased a further $10 to an average of $470 per week in May (REIWA), with the largest rise recorded in Como – up $40 to an average of $545 per week. This was followed by Butler, Dianella and Secret Harbour – all of which recorded a $15 rise in median rents across the month. This comes as rental stock continues to tighten across the market, with REIWA’s weekly data showing an average 2,387 properties advertised for rent in May – 17.24% lower than the same period in 2021.

Rise in overseas migration to fuel WA apartment demand

The Housing Industry Association has predicated a rise in demand for multi-residential units in their latest WA Construction Outlook, fuelled largely by the resumption of overseas migration. Their forecasts estimate a 23.6% increase in multi-residential starts across the State in 2022/23, with a further 11.6% increase the year following to reach 4,750. This will provide key opportunities for savvy developers and investors to capture rising demand levels across WA’s apartment market, particularly in Perth’s hotly demanded coastal and riverside suburbs.

National investor loan commitments continue to rise

The latest data from the Australia Bureau of Statistics has revealed a rise in the value of new national housing loan commitments in March 2022, rising 1.6% to $33.3 billion in seasonally adjusted terms. With the exception of February, the value of investor loan commitments has now recorded monthly increases since November 2020. Increases were reported across all states and territories in March, including a 5.9% rise in investor lending across WA.

Rising demand driving price growth in regional WA

Eight out of WA’s nine regional centres recorded price growth in the March quarter according to REIWA data (the exception being Esperance, where the median house sales price remained unchanged at $390,000). Busselton led the increase in quarterly values, with the median house sales price increasing 5.5% to $580,000. REIWA’s Deputy President attributed the increase to a shortage of available housing in the region and the resulting rise in buyer competition, along with an increasing shift towards work from home models.

On an annual basis, all nine regional centres recorded price growth during the 12-month period between the March 2021 and March 2022 quarters. This was led by Port Hedland, which recorded an exceptional increase of 40.6% in median house sales price. This was underpinned by rising mining activity, a shift towards localised workforce in the FIFO community and the government’s voluntary Buy-Back Scheme in Port Hedland’s West End.


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