Perth remains strongest performing capital city
According to CoreLogic, residential property values rose by 0.1% across Australia in November 2024. Perth maintained its position as the strongest-performing capital city in the nation for the 14th consecutive month, with a rise of 1.1%. This was followed by Adelaide (0.8%), Brisbane (0.6%), and Darwin (0.2%). In contrast, Melbourne (-0.4%) and Sydney (-0.2%) recorded the largest declines. (CoreLogic, 2024)
Dwellings in Perth rose by 3.0% over the past quarter and by 21.0% over the past year – the strongest increases in the nation. (CoreLogic, 2024)
Property listings increased in Perth
REIWA reported that there were 5,661 properties listed for sale during the week ending 1 December 2024. This marks an increase from the 4,996 listings recorded four weeks earlier, and from the 4,775 listings in the same week last year. (REIWA, 2024)
The time to sell a house in the Perth market rose to 13 days in November 2024, which is 4 days longer than the same period last year. The time to sell a unit also increased to 13 days during this period. (REIWA, 2024)
The graph below illustrates the downward trend in stock availability within the Perth market up to the week ending 1 December 2024.
Source: REIWA and Momentum Wealth Research
Stability in rental prices
REIWA reported that Perth’s median rental dwelling price remained stable at $650 per week in November 2024; however, this is 8.3% higher than the same time last year. The median rental price for houses rose to $670 per week, while the median rental price for units declined to $620 per week. Recently, rental prices have stabilised, suggesting the market may have reached its affordability threshold. As a result, many renters are seeking alternatives such as shared accommodations or more affordable units to cope with rising costs.
There were 2,199 properties listed for rent in Perth during the week ending 1 December 2024. This marks an increase from the 1,941 listings recorded four weeks earlier and the 1,930 listings at the same time last year. (REIWA, 2024)
The graph below illustrates the limited number of homes available for rent, which has contributed to Perth’s vacancy rate reaching record lows.
Source: REIWA and Momentum Wealth Research
In November 2024, Perth’s vacancy rate decreased to 1.7%, the second-lowest level since August 2020. While Perth’s rental vacancy rate had risen over the past few months, vacancies remain well below the 2.5-3.5% range typically expected for a balanced market. In November 2024, it took a median of 15 days to lease a property, which is one day faster than the previous month and one day slower than 12 months ago. (REIWA, 2024)
RBA holds cash rate in December
On 10 December 2024, the Reserve Bank of Australia (RBA) opted to leave the cash rate on hold at 4.35%. This marks the ninth consecutive month the cash rate has remained unchanged, with no movement anticipated throughout 2025. The RBA Board noted that “while underlying inflation is still high, other recent data on economic activity has been mixed, but on balance, softer than expected in November.” This trend is giving the RBA Board greater confidence that inflation is moving sustainably towards its target range of 2-3%. (RBA, 2024)
CBA, Westpac, NAB, and ANZ all believe that the cash rate has peaked at 4.35%. However, they have recently revised their forecasts for when the cash rate will start to fall. Westpac, NAB, and ANZ expect the first rate cut to occur in May 2025, while CBA holds a more optimistic view, forecasting a rate cut as early as February, eventually reaching 3.35% by the end of 2025.
The chart below provides an overview of the cash rate movements since the early 1990s.
Source: RBA and Momentum Wealth Research
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