Perth property market data, trends, forecasts

Perth property market news

The Perth property market has demonstrated remarkable resilience in the face of Australia's housing downturn. Property values soared +25.9 per cent from the Covid trough to July 2022 peak, and while most other markets have since seen significant price corrections, Perth's declines ended up being very minimal according to the latest CoreLogic data. In fact, prices have in fact been exploding once again to reach new all-time highs and place Perth as the country's standout performer. 

Perth property prices - November 2024

Boasting both relative affordability and a uniquely insulated economy, rising interest rates had less of an impact on the Perth housing market than many of the country's other capital cities. As a result, the Western Australian capital has seen a massive resurgence, becoming the country's fastest-growing city. In the process, the affordability it once represented has shifted.  

Nationally there was a shortage of stock on the market in 2024, and nowhere has that trend been stronger than in Perth. Compared to 12 months ago, new listings for November were up +12.7 per cent but total stock is up just +1.2 per cent, suggesting sellers are coming back to the market but new stock is being absorbed rapidly. Home sales were up +5.2 per cent year-on-year for November, so the balance looks to be weighted heavily in the corner of sellers. 

Perth homes are selling fast, too. Days on Market (DOM) is the lowest of any capital, sitting at a lightning-fast 12 days, though slightly higher than 12 months ago. By comparison, the national average is closer to 30 days. 

Perth house prices

Australia's housing boom of 2021 was very much house-led, so it stands to reason that houses would be hit harder than units in the downturn that followed. Surprisingly, that wasn't the dynamic in Perth, where houses continued to outperform. Now in 2024, houses have been edged out by units, but only just. 

Perth house prices - November 2024

The Perth median house price surged by another +1.0 per cent in November, bringing quarterly change right up to +2.9 per cent. Annual growth has also soared, currently sitting at a remarkable +20.7 per cent for the year. These figures exemplify the most robust housing market currently in Australia, though conditions are beginning to ease.

Perth unit prices

The Perth unit market has delivered historic returns in 2024, even outpacing houses by a small margin, as buyers seek out affordability in a rapidly growing market. 

Perth unit prices - October 2024

Perth's median unit price increased by +1.5 per cent in November, bringing the quarterly change to +4.2 per cent. On an annual basis, unit price growth sits at +23.7 per cent, lifting the median price just over $580,000.

Perth property market forecast 2024-25

After such historic growth over the past two years, economists say a market correction was inevitable. Perth enjoyed relative insulation from the downturn, though, and growth returned with strength in 2023. The question is, can it continue in 2024 and beyond? 

NAB's latest Perth house price forecast suggests values could increase by +23.1 per cent over 2024 with a further +8.3 per cent to come in 2025. 

Westpac's Perth real estate forecast also predicts another +20.0 per cent upswing in 2024 and +4.0 per cent due in 2025. 

Big four banks' Perth home price forecasts 2024-25

Whether or not this growth can be achieved still largely depends on the supply and demand dynamic over the rest of the year. Interest rates had extensive impacts on the market and, while there is now a period of stability, the high rate environment is still causing stress for buyers and homeowners alike. 

Currently, the RBA sits at 4.35 per cent, a long way up from the emergency-level 0.1 per cent rate borrowers were enjoying until May 2022. The banks expect there will be no further hikes, with rate cuts to begin in the first half of 2025.

Big four banks' cash rate forecast 2024-25

Now aligning with the banks' forecasts, SQM Research made predictions in late 2023 of another positive year ahead for growth in Perth. Across four possible scenarios, SQM predicted anywhere between +5 per cent to +9 per cent growth for the WA capital.

What are industry experts saying about the Perth property market?

Michael Yardney - Director of Metropole Property Strategists

"Perth proceeded to lead the country with the strongest annual home price growth (+22.6) in October as tight supply amid strong buyer demand saw competitive conditions fuel strong price growth.

However today, buying in such a market means you are likely buying near the peak of the market.

I would be cautious about buying in many of the cheaper Perth suburbs where investors are buying at the current prices because they’ve run ahead of the broader market.

Once investor demand from the East Coast slows down, these areas are going to weaken first. The smart money would have been there 2-3 years ago – and is now focused on other states that are early in the growth cycle."

Louis Christopher - Managing Director at SQM Research

"As it turns out, we still weren’t bullish enough, with Perth housing prices going to finish 2024 off at nearly up 25 per cent.

A combination of solid employment growth, juicy GST tax receipts, strong population growth and ongoing under-building all contributed to the Perth housing boom in 2024.

While now somewhat overvalued, the market could easily keep running up before it is too much of a stretch.

When I look at dwelling commencements, WA is currently building at half the rate it did in 2015. There is no building surplus coming for 2025, with WA set to build just 16,800 dwellings in 2025 with the state expected to expand by at least 90,000 people next year."

Perth house price graphs and charts

The latest Perth property price graph from CoreLogic's monthly chart pack clearly shows the rapid acceleration and sustained highs of the Perth property market before steadying over 2022 and ramping back up over 2023 and 2024.

The massive upward surge from mid-way through 2020 follows a rocky period of stagnation Perth, becoming one of the most explosive times of growth in Australian history. Since that point prices have been relatively unaffected when compared to other markets.

Looking at the wider context of the housing market over time, we can see in this 30-year house price growth chart that Perth's recent gains have shot prices back up to record levels.

The minor declines over 2022 pale in comparison to the surge in growth seen across Perth since the pandemic began.

Perth property info for sellers

Selling data for Perth property looks particularly strong as listings remain persistently low, home sales hold steady and Days on Market (DOM) continues to be well below the other capital cities.

Property investing in Perth

The Perth property market has always presented a unique set of pros and cons for investors as such an isolated city. Currently, Perth is looking promising for investors as rental vacancies are around the lowest in Australia and rents continue to increase rapidly. While property prices have risen substantially over the past two years, the city is still more affordable than capitals like Sydney, Brisbane and Canberra.

Top 5 suburbs for Perth investors

Canstar recently detailed some of the top suburbs where Perth property investors could find strong potential. 

The report noted that "As the cheapest capital city for houses, Perth offers some attractive options for people to buy affordably in locations with future growth drivers."

Top suburbs for investors to buy in Perth

"The Perth market has broad strength but the cheaper areas have the greatest momentum – and most of our Top 10 selections have median house prices well below $500,000, as well as identifiable growth drivers.

The other common feature is exceptionally low vacancy rates – all 10 locations are between 0.2% and 0.5%."

Looking to invest in Perth property? 

• Check out our list of best suburbs to invest in Perth for 2024
• Dig into some expert advice on where to find the top 10 suburb picks for Australian investors
• Find out the Perth suburbs with the highest rental yield