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“This will lead to a significant increase in apartment prices next year, which are already rising.”
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Despite predictions from some eastern states commentators that the Perth property market has peaked, Limnios Property Group is predicting further capital growth in Perth over the coming years.
Perth’s median house price is expected to grow by more than 20 per cent by 2024, according to REIWA’s latest quarterly property market update.
REIWA chief executive Cath Hart said if the market continued on its current trajectory, the median house sale price in Perth could reach $740,000 by the end of 2024.
“Demand remains strong, homes continue to sell at record rates and prices continue to rise,” she said.
“Perth’s median house price is currently $668,000 at the end of June, which is already 11.3 per cent higher than it was at the end of December 2023 and 22.6 per cent higher than the previous peak of $545,000 reached in 2014.”
Mr Hart said median apartment prices were also expected to hit a new high in the coming quarter as the market continued to be driven by strong population growth and building restrictions.
“Western Australia’s population growth rate was 3.3 per cent in the year to December, including a net increase of about 79,000 people through overseas migration and interstate migration,” she said.
“That’s about double the population of Valdivisi, which significantly increases the need for housing.”
Australian Property Buyers’ Agents Association president Melinda Jennison said despite cost of living challenges, the new stage three tax cuts were expected to increase disposable income and borrowing capacity for many households, potentially increasing housing demand and further pushing up house prices.
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Mr Jennison said Perth remained an extremely tight housing supply city, with total listings down 22.6 per cent on the same time last year and well below the five-year average.
“Meanwhile, sales volumes have increased by 7.7 per cent year-on-year. Time on market has also shortened, with the average property now taking just 10 days to sell, forcing buyers to act quickly to avoid missing out,” she said.
Oxford Economics senior economist for Australia Maree Kilroy said the latest ABS data on private residential building approvals fell 0.5% to 9,078 units, led by Western Australia (-5.1%).
“We expect positive momentum to pick up in 2025 as interest rate cuts and policy support from federal and state governments are passed through,” she said.
“The improvement will be slow as entrenched trade labour shortages place significant constraints on the pace of early recovery.”
Head of research Tim Lawless said available supply was a key factor in explaining the different results in housing growth trends.
“The number of properties for sale in Brisbane, Adelaide and Perth is more than 30 per cent below the average for this time of year, while weaker markets such as Melbourne and Hobart are recording advertised supply well above average,” he said.
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