Perth Tops Capital Cities for House Price Growth

Perth recorded the highest percentage increase in the median sale price for three-bedroom houses among all capital cities in the June 2024 quarter, according to the latest REIA Real Estate Market Facts. The median price for three-bedroom houses in Perth rose by 6.5%, reaching $735,000. Despite this growth, Perth remains one of the most affordable capital cities based on median house prices. Adelaide followed with a 3.6% increase.

For two-bedroom other dwellings, which include units, townhouses, flats, and terrace homes, Perth saw a 5.4% increase in the median sale price, bringing it to $485,000. Hobart and Adelaide recorded even stronger growth at 9.0% and 7.8%, respectively. Over the past year, Perth's median sale price for three-bedroom houses increased by 26.7%, while two-bedroom other dwellings rose by 21.3%.

The significant price rises are driven by strong population growth and limited housing supply. Western Australia's population grew by 3.3% in the year to December 2023, with 79,000 new arrivals through interstate and overseas migration. This increase in demand has outpaced the number of new housing completions, creating a shortfall of around 15,000 homes.

Although Perth’s housing prices have climbed, it still ranks as one of the most affordable capital cities, alongside Hobart and Darwin. Perth also remains the most affordable state for homeowners, with 39.5% of family income needed to meet average monthly loan repayments, compared to 48.1% nationally.

Property sales in Perth rose by 2.3% quarter-on-quarter, reflecting continued strong demand. Although listings continue to come to market, properties are being snapped up quickly.

Across Perth and its regions, median sale prices for three-bedroom houses increased. Perth Inner saw a 1.7% rise, while Perth Middle and Perth Outer experienced increases of 5.6% and 6.3%, respectively. Regional centres also saw growth, with Bunbury up 9.1%, Broome up 1.5%, and Albany up 5.1%.

Median sale prices for two-bedroom other dwellings also rose in Perth and regional centres. Perth Middle saw the largest quarterly increase at 9.2%, while Bunbury experienced a 23.8% jump. Annually, significant growth was recorded across both Perth and regional Western Australia.

In the rental market, Perth’s median weekly rent for three-bedroom houses increased by 3.3% in the June quarter, with an annual rise of 12.7%. Rents for two-bedroom other dwellings remained stable quarter-on-quarter but surged by 20% year-on-year. Perth continues to have the tightest rental market in the country, with a vacancy rate of 0.5% at the end of the June quarter, although recent data suggests conditions may be easing.

Despite stabilising rent prices, demand remains strong in outer suburbs and regional areas. However, an increase in vacancy rates and more stable rent prices point to a softening in the rental market pressure.

Paulette Contessi

Director / Licensee

CONTESSI PROPERTIES