Perth’s median house price is poised to reach a record high of $856,000 by 2025.
Dilleen Property Group 2024
Perth’s property market has demonstrated remarkable resilience, especially during Australia’s housing downturn. While most other markets experienced significant price corrections, Perth’s declines were minimal. In fact, property values soared by +25.9% from the Covid trough to the July 2022 peak, positioning Perth as the country’s standout market1.
Factors Driving the Surge
Relative Affordability: Boasting both relative affordability and a uniquely insulated economy, Perth weathered the property downturn better than other capital cities. Rising interest rates had less impact here, contributing to its robust performance.
Shortage of Stock: Nationally, there’s been a shortage of stock on the market, and nowhere is this trend stronger than in Perth. New listings increased by +7.7% compared to 12 months ago, but total stock decreased by a significant -24.9%. This scarcity is met with an uptick in sales, favoring sellers.
Speedy Sales: Perth homes sell rapidly, with an average of just 10 days on the market (compared to the national average of around 30 days).
House and Unit Prices
Houses: Perth’s median house price surged by another +2.0% in April 2024, bringing the annual growth to a remarkable +21.3%. Houses remain out in front, with a current median price of $753,947.
Units: While unit prices haven’t matched house growth, they’ve still delivered strong returns. In April 2024, the median unit price increased by +1.9%, with an annual change of +19.6%1.
Forecasts for 2025
NAB predicts a +9.9% increase in 2024 and a further +6.2% in 2025.
Westpac forecasts a +10.0% upswing in 2024 and +8.0% in 20251.
Conclusion
Perth’s property market is on an upward trajectory, driven by scarcity, affordability, and robust demand. With these factors in play, the record-breaking median house price of $856,000 by 2025 seems well within reach1.
In conclusion, the year 2025 holds significant potential for investors, and with the right strategies in place, you can shape a successful financial future. If you're eager to start your investment journey this year, take the first step today by consulting with experts who can guide you on this exciting journey. If you’re looking to build your own property portfolio, feel free to contact us to book a call with one of our property strategists by clicking here to learn more about our services and investment strategy.
Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.