Published on: August 7, 2024 Wednesday
Published by Sanctuary Real Estate
According to the latest quarterly update from REIWA, Perth’s median house price is projected to increase by over 20 percent in 2024.
“If the market continued on the current trajectory, Perth’s median house sale price could reach $740,000 by the end of the year”, REIWA’s CEO, Cath Hart said.
“Demand remains strong, houses continue to sell in record time and prices keep rising,” she added.
As of June 2024, Perth’s median house price was $668,000, which is already 11.3% higher than of December 2023 and already 22.6% higher than the previous peak set in 2014 of $545,000.
Hart stated that the median unit sale price is also anticipated to reach a new record in the upcoming quarter.
Hart also stated, “After seeing a little growth for most of 2023, the median unit sale has recorded 8.3% growth since December to reach $445,000 at the end of June.”
What factor drives price increases?
It was also mentioned that the market continues to be driven by strong population growth and constraints in the building industry.
According to Hart, “WA has recorded 3.3% population growth which included about 79,000 net arrivals through overseas and interstate migration, and this is about twice the population of Baldivis, which significantly boosts the demand for housing.
Current demands in the Rental Market
The rental market was seen to have an increase in tenant household sizes as people wants to share the financial burden of renting.
The rental market is also benefitting from the completion of investor-owned builds, which is adding to rental supply.
The data, including factors like a rise in the median time to lease and the number of rental listings, indicated that the rental market was experiencing a slight easing.
It was seen that at the end of June, Perth’s dwelling rent price was $650 per week, unchanged from March, but said to be 8.8% higher than the price in December last year.
REIWA’s CEO also mentioned that this condition varied across Perth’s rental market, but there had been a decrease in demand for properties over the median rent price, with homes taking longer to rent.
