Perth’s property market experienced remarkable growth in 2023 to outperform all other capital city markets in Australia, according to CoreLogic. That’s after property prices in the city rose by more than 1% each month to total an impressive 15.2% growth by year’s end.
You might be wondering what the industry experts predict for the next 12 months.
Well, in good news, many anticipate continued growth with:
- SQM Research expecting property prices to climb by up to 9%
- PropTrack predicting an increase of up to 8%
- The Real Estate Institute of Western Australia (REIWA) forecasting 10% growth
A key driver of this growth is Western Australia’s population boom, with people moving to the state in record numbers drawn by the strong economy and enviable lifestyle.
Australian Bureau of Statistics data showed that Western Australia recorded a 3.1% increase in its population in the year to June, the strongest growth rate in the country. This surge resulted in nearly 87,000 additional people, equating to about 35,000 new households, assuming an average of 2.5 people per household.
REIWA chief executive Cath Hart noted that in the same timeframe 14,000 new homes were completed.
“That’s a shortfall of over 20,000 dwellings, which is putting incredible pressure on the established homes market and driving up prices,” she said.
“More population growth is expected over the next year, with the State Government revising its forecast population growth of 1.7% for 2023-24 to 2.4% in its mid-year budget review.
“However, the Housing Industry Forecasting Group expects about 15,000 to 16,000 new dwellings to be completed in the year to June 2024.
“Based on these figures we can expect demand for established homes to be high for some time to come.”
Another factor contributing to the property market’s strength is the exceptionally tight rental market.
According to Domain, Perth had an exceptionally low vacancy rate of 0.4% in December, which has pushed house and unit rents to record levels. This, in turn, is attracting investors while simultaneously encouraging people who might have rented to consider buying instead.
Looking to buy a property in Perth? As an expert Perth buyer’s agent, Resolve Property Solutions can help. To discuss your options, book a free strategy call with Peter Gavalas.
