Property values continue to increase
Residential property values across Australia rose by 0.6% in April, with Perth recording the most significant increase of 2.0%, followed by Adelaide (1.3%) and Brisbane (0.9%). Perth’s dwelling values have risen 6.0% over the past quarter and 21.1% over the past year – the strongest rise in the nation. (CoreLogic, 2024)
The high demand for properties in Perth continued, with a median time to sell a house remaining steady at 8 days during April. This is six days faster than the year prior. (REIWA, 2024)
Perth’s housing supply remains low
According to REIWA, there were 3,642 properties listed for sale during the week ending 28 April 2024. This is higher than the 3,591 listings recorded four weeks prior but lower than the 6,452 in the same week last year. (REIWA, 2024)
The graph below demonstrates the downward trend of stock availability within the Perth market.
Source: REIWA and Momentum Wealth Research
Rental prices remain stable
Perth’s median rental dwelling price remained at $650 per week in April 2024, which is an 18.2% increase compared to 12 months ago. The median rental prices held steady at $650 per week for houses and $600 per week for units in April. (REIWA, 2024)
According to REIWA, Perth’s vacancy rate rebounded slightly to 0.5% in April, up from the record low of 0.4% in March. This is slightly lower than 12 months prior, when the vacancy rate was 0.7%. Rental vacancies remain far below what is expected of a balanced market, which is typically between 2.5% and 3.5%.
During April 2024, it took a median of 16 days to lease a property, which is one day slower than in March and the same as 12 months ago. (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
WA’s dwelling demand versus supply
The net supply of dwellings identifies how the supply and demand of housing influence residential house prices within the Perth market. It’s calculated by deducting the estimated quarterly demand for dwellings by the number of dwellings added onto the market, less demolitions. According to the Australian Bureau of Statistics (ABS), demand estimates are based on Western Australia’s quarterly population growth and since 2005, the average household is occupied by between 2.55 to 2.62 people.
The September 2023 quarterly population data shows that Western Australia recorded the strongest annual growth in the nation at 3.3%. During the quarter alone, Western Australia’s population grew by 24,695 people reflecting a net demand rise of around 9,684 dwellings. However, with only 5,107 dwellings completed and 384 demolished approved in the same quarter, Western Australia faced a net supply deficit of 4,961 dwellings. (ABS, 2024)
This supply shortage, coupled with low dwelling approvals, suggests Perth’s property prices will likely continue to rise.
Source: ABS and Momentum Wealth Research