Why Now is the Perfect Time to Buy in the Perth Property Market
1. RISING PRICES
Westpac has projected an annual price growth of 14% in the Perth property market in 2024, followed by 8% in 2025.
2. PERTH MARKET
Perth is in a rising market for both units and houses in comparison to other states which have reached their peak, in decline, or stagnant. In late October, the median house price in Perth was $707k which was just over half of Sydney’s median house price of $1.33m.
3. LOW SUPPLY
Based on the last few years of challenges facing the construction industry, there has been a very low supply of houses and apartments (record lows). Demand is out stripping supply considerably with an estimated 7-10 year catch up period needed.
In late October, there was 4,751 properties for sale in Perth, which is 5.2% lower than levels seen a year ago. The graph below illustrates the decline in listings from current levels since October 2018 by a factor of more than 3.
4. HIGH DEMAND
The Perth property market is currently sitting at a median, all-time record low, of just 9 days to sell a property as reported by REIWA in late October. Not all that long ago that figure was about 60 days, this shows the public’s appetite for property is extremely strong.
There is a very high demand for any property in Perth because of many reasons, including increased immigration, low supply, and from a national standpoint, more affordable (as seen wih Sydney’s median house price).
WA saw the strongest population growth over the 12 months ending March 2024, with over 1,000 people entering the state each week and a 2.3% increase recorded for the year to December 2022, with a forecasted growth of 1.8% in 2024.
5. RENTAL VACANCY
The rental vacancy rate is currently below 1%, where it would normally be around 5%, pointing to a rapid tightening of the rental market. This is providing strong returns for investors, with the potential for strong capital growth.
Demand will maintain pressure on prices, and we will see median rents increase over the remainder of the year as 12-month fixed-term leases come up for renewal at current prices.
6. THE NEXT STEPS
With interest rates leveling out in 2024 and reductions forecasted in 2025, there is an opportunity in Perth’s off-the-plan market right now for any strategic purchaser that wants to maximise the coming growth cycle.
By all accounts, now is the time to step up to the plate.
Contact us today using the button link below to capitalise on this unique time in the market.
Stay tuned as we’ll return next month with another update on the Perth Housing Market.
Get In Touch With UsStatistic information has been sourced by REIWA, REA, CoreLogic and Westpac valid as at October 2024.
