Perth property prices are rising in 2024 and have been for a few years now.
The city’s market is being influenced by strong population growth, limited supply and economic stability.
These are driving prices up and making Perth one of the hottest property markets in Australia.
So, how exactly is this happening?
What are the Current Market Trends?
The median house price in Perth is $670,000 by August 2024. Up 8.4% from last year. Prices are growing in most suburbs and demand is outstripping supply.
The local economy is strong, unemployment is low, and migration is high, making the Perth property market particularly attractive.
What are the Key Drivers of Growth?
- Demand vs. Supply: Perth’s market is in demand mode with a huge shortage of stock. The city’s population is growing fast but new supply hasn’t kept up. This mismatch is driving prices up across the board.
- Interest Rates: Despite high interest rates, demand is still strong in Perth. The local economy is good and many are keen to get in before prices go up even more. If you’re wondering how much does a house cost in Perth, now might be the time to explore the market.
- Economic Stability: Perth’s economy is good, with low unemployment and a booming resources sector. This is attracting more home buyers to the city and to the housing market.
Suburb-Specific Insights
Some suburbs in Perth will see bigger price growth in 2024. These are:
- Baldivis: Affordable and family-friendly, Baldivis is one of the suburbs that will see significant price growth.
- Scarborough: This beachside suburb is highly sought after, demand is driving prices up.
- Bayswater: Close to the city and with ongoing infrastructure projects Bayswater is the suburb to watch.
Unit Prices: The unit market is also growing but at a slower pace than houses. The median unit price is expected to hit $459,000 by 2025, with strong demand in areas like Joondanna and Tuart Hill.
Below is an overview of the median house and unit prices in 10 key Perth suburbs, highlighting their appeal to buyers and investors.
| Suburb | Median House Price | Median Unit Price | Growth Drivers |
|---|---|---|---|
| Baldivis | $625,000 | $432,000 | Affordable, family-friendly, growing demand |
| Scarborough | $1,097,500 | $620,000 | Beachside location, lifestyle appeal. |
| Bayswater | $822,500 | $370,000 | Proximity to CBD, infrastructure upgrades. |
| Joondanna | $831,400 | $461,500 | Close to city, strong rental demand. |
| Tuart Hill | $715,000 | $430,000 | Desirable suburb with solid growth. |
| Canning Vale | $842,500 | $495,000 | Family-oriented, strong local amenities. |
| Subiaco | $1,690,000 | $595,000 | High demand, central location. |
| Mount Lawley | $1,505,555 | $435,000 | Heritage homes, vibrant community. |
| Fremantle | $1,200,000 | $506,250 | Historic charm, close to coast. |
| Victoria Park | $881,000 | $402,000 | Urban living, proximity to city. |
What is the Market Outlook for 2024?
The outlook for Perth property prices is positive for the rest of 2024 and beyond. Houses are expected to keep growing by another 8% in the next 12 months.
This is driven by population growth, a strong economy and limited supply
For those considering long-term investments, it’s worth exploring Perth property predictions in the next 5 years to understand the market trajectory.
Perth’s Rental Market
Perth’s rental market is also seeing significant activity. Rental prices are going up fast due to low vacancy rates and high demand.
Median house rent is now $650 per week up from $550 in 2022. Unit rents are also up $600 per week. The tight rental market is forcing more people to buy and that’s driving prices up even more.
Economic Drivers
- Population Growth: Western Australia has the highest population growth in the country. This is a big driver of housing demand in Perth.
- Employment: Low unemployment in Perth means more people have the means to buy property and that’s driving the market.
- Economic Boom: The local economy is good, especially in the resources sector. This is attracting local and international buyers to the Perth property market. This is attracting local and international buyers to the properties for sale in Perth.
Future Predictions for Perth Property Prices
Looking forward Perth property prices will keep growing. The market will be strong into 2025 with houses expected to keep growing. Population growth and economic stability will keep demand in the city.
Conclusion
In summary, Perth property prices are on the rise, demand is strong, supply is limited and the economy is good. Whether you’re a first home buyer or an investor, Perth has opportunities for you to take advantage of the current market.
Frequently Asked Questions on ‘Perth Property Prices 2024’
How much will Perth property prices be in 2025?
By the end of the 2025 financial year, house prices in Perth are expected to reach around $840,000. Unit prices are predicted to climb to approximately $440,000.
Is now a good time to buy property in Perth?
Yes, 2024 is considered a good time to buy property in Perth due to strong market growth, relatively affordable prices compared to other major cities, and favorable economic conditions. However, it’s important to research local trends and consult a real estate expert.
What is the prediction for Perth property in 2028?
If current trends continue, Perth’s property prices could have a median of $2.05 million by 2028. Suburbs like Alfred Cove might see steep increases, with median prices potentially hitting $1.55 million.
Is Perth in a housing crisis?
Yes, Perth is currently experiencing a housing crisis. The city faces a severe housing supply shortage, despite strong economic conditions, a growing population, and relative affordability attracting buyers.
Should I sell my house now or wait until 2024 in Australia?
If you’ve seen significant capital gains from your property since the pandemic, now might be a good time to sell. While property values have risen dramatically, more modest growth is expected in 2024.
Where to buy in WA in 2024?
Some of the best suburbs for investment in Perth in 2024 include Wanneroo, Alkimos, Carramar, Joondalup, Ellenbrook, Northbridge, Orelia, and Brabham.
What are the cheapest suburbs in Perth in 2024?
The most affordable suburbs in Perth for 2024 include Balga, Armadale, Midland, Gosnells, Rockingham, and Maddington. These areas offer affordability without compromising on Perth’s vibrant lifestyle.
Will property prices double in 10 years?
To double in value over 10 years, a property would need an annual growth rate of just over 10.2%, thanks to the power of compounding.
Sources: Information sourced from The Property Tribune, Holdsworth Real Estate and REIWA. Compiled on 27/08/2024.
