Best areas to buy property in Western Australia in 2024

Dreaming of WA property gold in 2024? 

Then you've got to know the lay of the land. Thankfully we've collected the intel from top property analysts and experts, and unearthed the top suburbs that are ripe for investment.

First stop: a deep dive into WA's 2023 property market and how it performed. Let's see where the tides rose and where they might flow next.

What did the WA property market look like in 2023?

It is safe to say that Perth and regional WA had a cracker ‘23 - something the numbers really do confirm. 

Overall, CoreLogic data shows that Perth dwellings advanced a whopping +15.2 per cent for a median property value of $660,754 over ‘23. Together with Adelaide, house prices are at an all-time high. Despite this, affordability is a major drawcard for this market, with only Hobart and Darwin recording a more affordable median property price

Demand for wallet-friendly houses in Perth saw the market advance +15.5 per cent over the year, for a median of $691,100. Also consider that houses grew +5.3 per cent in the final quarter of the year, which suggests there could be a tailwind behind this ship into ‘24 - but more on that later. Units are only just behind in the growth stakes, up +12.4 per cent for a median of $464,380 - having advanced +4.0 per cent in the final quarter of last year. 

Switch to regional WA and the story is similar, albeit with numbers only slightly less exuberant - with all dwellings rising +8.4 per cent over the year for a median of $464,062. 

Houses advanced +8.2 percent to $477,690, while units in regional areas had a cracker, up +10.9 per cent for a median of $321,852. CoreLogic’s Regional Market Update (Nov, ‘23) identified the Albany, Bunbury, and Busselton regions as ‘hot’ markets, evidenced by their rapid selling times of 18, 19, and 20 days respectively. Bunbury was also the strongest performer over the three months to October, up +4.6 per cent. 

Mining-focused regional areas are once again making the headlines in WA, with the community of Kalgoorlie - Boulder recording the highest yearly rental growth (+11.2 per cent), as well as the highest gross rental yield (+9.3 per cent) in the country. 

That was then, what about the year ahead?

WA real estate forecast 2024

According to the Property Tribune, the general consensus from experts is for the WA market to, ‘...continue observing elevated levels of demand and ongoing price surges’ in ‘24.

Warren Chrsiopher at SQM Research is forecasting wind in the sails (+5 per cent to +9 per cent) for the Perth housing market, though slightly softer than last year. Positive factors in the state’s favour include:

• Tight rental conditions
• A better-than-expected global commodities market 
• Minimal exposure to the financial services sector (where job losses are possible)

Other forecasts include the Real Estate Institute of Western Australia (REIWA) who see a robust +10 per cent increase in house prices in ‘24. It’s a similar story from ANZ who forecast a healthy +7 percent - +8 per cent growth for Perth dwelling values. Domain is a little more conservative, predicting Perth houses will grow +6 per cent - +7 percent, with units softer at +1 percent - +2 percent. 

If you are after an apartment you will want to know how they are performing, particularly what the rental market is like.

What's the WA apartment market like?

While the Perth apartment market saw solid growth over 2023, most analysts predict a more modest 2024. The REIWA is forecasting around +4 per cent - +5 per cent growth in apartment values, compared to the double-digit gains of houses. 
Rental yields remain relatively high, with CoreLogic predicting an average 5.5 percent yield for units vs 4.2 percent for houses. With the ongoing rental vacancy rate in Perth hovering around 1 per cent, investing in an apartment could produce attractive potential for rental income in the year ahead. International and interstate migration is likely to continue to be a driver for housing demand, with WA recording a +3.1 per cent rise in its population in the year to June ’23. According to the ABS, this was the biggest increase of all the states and territories.

What are the best areas to buy property in WA in 2024?

While past performance is not a guarantee of future success, CoreLogic recorded the following Perth suburbs with exceptional growth over the past 12 months:

• Armadale, in Perth’s south-east grew +25.2 per cent for a median dwelling value of $574,410 
• Gosnells, in Perth’s south-east grew +22.6 per cent for a median dwelling value of $579,608 
• Rockingham, southwest of Perth grew +21.5 per cent for a median dwelling value of $595,961

Moving to regional postcodes, the following are at the head of the leaderboard over the same timeframe: 

• Bunbury, just south of Perth grew +15.0 for a median property price of $508,219 
• The Wheat Belt in the north of the state saw property grow +10.2 per cent for a median property value of $367,483
• The Augusta - Margaret River - Busselton region had a productive year, with property advancing +9.6 per cent for a median price of $745,283

The most searched suburbs on the Domain property portal over ‘23 were Bedfordal,  Gidgegannup, Gooseberry Hill, Darlington and Roleystone. Domain also reports on the regional postcode with the highest clearance rate (92 per cent) over ‘23: the town of Australind (just outside Bunbury). The median house price there is currently $515,000, where values have grown +13.2 per cent over the past year. Houses there rent out for $570 per week, with a very attractive annual rental yield of 6.1 per cent. 

Remember to do your due diligence and research before you invest in a property. Key metrics to identify include: 

• Suburbs with good rental yields and demand.
• Growth potential, based on past performance and future development plans.
• Proximity to infrastructure projects, schools, and desirable amenities can all increase a property’s value.