July 02, 2024 by Jonathan Lee
Perth house prices set to rise 8-11% next year due to limited housing stock and high demand, says PropTrack.
- In short: Perth house prices are predicted to rise between 8 and 11 per cent in the coming year
- One economist says price hike is influenced by limited housing supply and increasing demand
- It comes after a 19 per cent increase in Perth property prices over the past year
Thirteen consecutive interest rate rises has not curbed Perth's exponential housing boom, with the city in Western Australia tipped to exceed 10 per cent growth in 2024 and possible double-digit gains in 2025.
This post delves into recent property market performance in Perth, backed by insights from PropTrack.
Whether you're a first-home buyer, an investor, or looking to sell, understanding the current state of the market can help you make informed decisions.
Shortage of new builds
There are about 23 per cent less houses in the WA city than the same time last year, with increasing material costs driven by high interest rates contributing to the decline of new homes being built, according to PropTrack economic researcher Cameron Kusher.
"There's not a lot of new housing being built and there's a very low amount of stock available for sale in Perth," Kusher told the ABC News.
Kusher continues to note that this problem isn't unique to Western Australia; it's a nationwide issue exacerbated by high interest rates hindering development. "Margins have been crushed because material and construction costs have gone up so much."
As a result, Perth property prices are experiencing a resurgence after a period of subdued growth. According to REIWA, the Median house price in Perth is at $668,000 as of June 2024.
Despite prices expected to continue soaring over the next 12 months, Kusher said that Perth's market is just catching up after over a decade of stagnant property growth.
"It's still more affordable than Adelaide, Brisbane, Melbourne, Sydney now but it's certainly closing the gap on those capital cities," he said.
Perth's best performing suburbs
Future outcomes are difficult to predict, but the Perth suburbs listed below were the strongest over the past year.
Table 1: Perth suburbs with the largest median sale price annual growth
| Suburb | Capital city | Property type | Median sale price | 12 month % change in median sale price |
| Darlington | Perth | House | $1,150,000 | 42% |
| Kallaroo | Perth | House | $1,226,000 | 38% |
| Shoalwater | Perth | Unit | $301,000 | 37% |
| Armadale | Perth | House | $450,000 | 36% |
| Midvale | Perth | House | $510,000 | 35% |
Start or build your property portfolio
A mortgage broker can help supercharge your property goals with a tailored lending strategy.
Perth's property market has demonstrated impressive resilience and growth in recent times, making it an attractive option for buyers and investors alike.
Full Report: Download the PropTrack Property Market Outlook June 2024
For those considering entering the Perth property market, staying informed and seeking expert advice is crucial. At Mortgage Choice Williamstown, we're here to help you navigate the complexities of the market with a tailored lending strategy to support your ideal future.
Book in for a free consultation to find out how we can help you make your property portfolio dreams a reality.
