Perth Residential Property Market Insights – November 2023


Perth property prices continue to rise

In November 2023, residential property values across Australia experienced an uptick, with an overall increase of 0.6%. Leading this growth was Perth, which saw the most substantial rise in property prices at 1.9%, outpacing other major cities such as Brisbane (1.3%) and Adelaide (1.2%), according to CoreLogic.

Additionally, Perth’s housing market showed remarkable strength over the past quarter, with dwelling values climbing by 5.4%, marking the most significant increase nationwide (Core Logic, 2023).

It took a median of just 8 days to sell a property in Perth during November 2023, remaining unchanged from the record low set in the month prior and twice as fast as 12 months ago (REIWA, 2023).

In November 2023, the median time taken to sell a property in Perth was just 8 days, maintaining the record low achieved in the previous month. This rate of sales is notably faster than the same period 12 months earlier (REIWA, 2023).

Listings for sale consistently low

The availability of properties for sale in Perth has continued to decline, reaching a low of just 4,775 properties in the week ending 4 December 2023 (REIWA, 2023). This figure marks a decline from 4,852 properties recorded four weeks earlier, and a significant drop from the 8,475 properties available in the same week the previous year.

The accompanying graph clearly illustrates the ongoing downward trajectory in stock availability within the Perth property market, highlighting the tightening conditions and decreasing supply.

Source: REIWA and Momentum Wealth Research

Rental stock remains low as prices rise

The rental market in Perth remains tight, with the rental vacancy rate holding steady at a low 0.7% in November.

In November, the median rental dwelling price rose to a record high of $600 per week and the median weekly rent for houses rose to $610, while units remained steady at $550 per week.

There were 1,930 properties available for rent during the week ending 4 December 2023, which is slightly higher than the 1,739 recorded four weeks prior and 1,877 recorded the same time last year. (REIWA, 2023).

The median time to lease a property in November remained at 14 days during November, unchanged from October (REIWA, 2023).

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

Source: REIWA and Momentum Wealth Research

WA leads nation in population growth

The Australian Bureau of Statistics (ABS) has released its latest statistics, showing that Australia’s population increased by 2.4% in the year ending 30 June 2023. (ABS, 2023).

Western Australia continued its growth trajectory, recording an annual population increase of 3.1% which was the fastest annual rise in the country for the third consecutive quarter. Western Australia was followed by Victoria, which rose 2.7% and Queensland, which rose 2.6%. (ABS, 2023).

Western Australia’s population growth was driven by a significant uplift in international migration numbers, which increased by 61,591 during the 12 months to the June 2023 quarter. During this same period, Western Australia also had the second-highest rate of interstate migration (11,630), behind Queensland (32,255).

WA’s increasing population growth and shortage of housing is expected to place further upwards pressure on housing prices.

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

Source: ABS and Momentum Wealth Research