Perth’s residential property market has demonstrated strong performance in the final quarter of 2024, characterized by rising property values, high demand, and significant rental market activity. Below is an overview of the key trends during October, November, and early December.
Market Performance Overview
- October 2024: Perth dwelling values rose by 1.4%, marking the 22nd consecutive month of growth and the 18th straight month with gains exceeding 1%. This consistent growth highlights the city’s market resilience and appeal.
- November 2024: The median house price reached a new peak of $585,000, reflecting an 8.2% annual increase. The rapid growth underscores strong demand and limited supply.
- December 2024 (early trends): Preliminary data suggests continued upward pressure on property prices, bolstered by sustained buyer interest and population growth.
Key Market Trends
- Strong Price Growth: Perth continues to lead Australian capital cities in property value increases, with a 22.6% rise over the past year. This positions Perth as one of the most attractive cities for property investment in the country.
- Rapid Sales Turnaround: Despite an increase in property listings, houses sold in a median of just eight days in November. This indicates a competitive market where buyer demand outpaces supply.
- Rental Market Dynamics: The rental market remains tight, with median weekly rents for houses reaching $610 in November—a 15.1% increase year-on-year. Rental vacancies are at historic lows, making it a challenging market for tenants.
Factors Driving the Market
- Population Growth: Western Australia has experienced a 2.8% population increase over the past year, significantly contributing to housing demand. Migration trends further fuel this growth, as Perth attracts individuals and families seeking affordability and lifestyle benefits.
- Supply Constraints: The construction sector continues to face challenges, including labor shortages and material delays. This limits the availability of new housing stock and contributes to upward pressure on prices.
- Economic Stability: Perth’s economy, underpinned by the resources sector and infrastructure development, provides a stable backdrop for property market growth.
Outlook for 2025
Perth’s residential property market is expected to maintain its upward trajectory into 2025. Analysts predict continued price increases driven by strong demand and supply constraints. However, the growth rate may moderate slightly as market forces adjust to increased listings and economic factors.
Perth’s residential property market has shown exceptional performance in late 2024. Key highlights include sustained price growth, high demand in both sales and rentals, and a dynamic market supported by population and economic growth. For buyers, sellers, and investors, the Perth property market remains a compelling opportunity heading into the new year.
