Authored by the expert who managed and guided the team behind the Australia Property Pack
Yes, the analysis of Perth's property market is included in our pack
What do the latest numbers reveal about Perth’s real estate market? Are property prices on the rise, or are they stabilizing? Which suburbs offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Perth, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Homes near train stations in Perth have a 7% price premium
Living near a train station in Perth has become increasingly desirable, with homes fetching a 7% price premium.
In recent years, suburbs like Ellenbrook and Alkimos have seen the opening of new train stations, making them hotspots for homebuyers and investors. This development has significantly boosted the appeal of these areas, as people are drawn to the enhanced connectivity and lifestyle improvements.
Being close to a train station means easy access to work, school, and leisure activities without the hassle of driving. This convenience is a major factor driving up property values in these neighborhoods.
The trend in Perth's real estate market is clear: homes near public transportation are in high demand. This demand is fueled by the lifestyle benefits and ease of commuting that come with living near a train station.
For those considering buying property in Perth, it's worth noting that proximity to a train station can significantly enhance property value. This is especially true in newly developed areas with improved transport links.
As the city continues to expand its public transport network, the appeal of homes near train stations is likely to grow, offering both convenience and a sound investment opportunity.
Sources: Satterley's Perth Investment Guide, Knight Frank's The Wealth Report 2024
2) Perth has more than 50 suburbs with median house prices below $500,000
In 2023 and 2024, Perth stood out for its affordable housing market, with many suburbs offering median house prices under $500,000.
Take Medina, for example, where the median house price was $422,402. This suburb is just one of the many areas contributing to Perth's reputation for affordability. According to API Magazine, there are 26 suburbs with median house prices below $500,000, making it a hotspot for budget-conscious buyers.
But it doesn't stop there. The REA Group's data reveals that 56 suburbs have median unit prices under $500,000, further expanding the range of affordable options. This means that whether you're looking for a house or a unit, Perth has plenty to offer without breaking the bank.
Smart Property Investment and various YouTube videos have also highlighted specific suburbs expected to perform well, all with median house prices comfortably under $500,000. These insights are invaluable for potential buyers looking to invest wisely in the property market.
Even though not every source lists over 50 suburbs explicitly, the overall picture is clear: Perth's property market is rich with affordable opportunities. This is a city where you can find a home that fits your budget without compromising on quality or location.
For those considering a move or investment, Perth's diverse range of housing options and competitive prices make it an attractive choice. With affordable properties scattered across numerous suburbs, it's a buyer's market waiting to be explored.
Sources: Smart Property Investment, API Magazine, YouTube
We made this infographic to show you how property prices in Australia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
3) Nearly 60% of Perth residents are homeowners, below the national average of 66%
In Australia, the national home ownership rate in 2023 and 2024 was about 66%, as reported by the Australian Bureau of Statistics.
Western Australia, home to Perth, boasts a home ownership rate of 69.3%, the highest in the country. This might suggest that Perth, a major city in the region, could have a higher rate than the national average.
Despite this, nearly 60% of Perth residents own their homes, which is below the national average. The Perth housing market has been quite dynamic, with property prices on the rise.
By October 2024, the median house price in Perth had climbed to $715,000, making it more challenging for residents to afford homes. This increase in property prices reflects the strong conditions in the market.
These rising prices could be a barrier for potential buyers, even though the state overall shows a high ownership rate. The contrast between the state and city figures highlights the unique challenges Perth residents face.
Sources: EEMortgageBroker, Savings.com.au, Real Estate Business
4) Perth residents downsizing to smaller homes increased by 10% last year
In 2023, the number of Perth residents downsizing to smaller homes rose by 10% last year.
This shift is part of a larger trend in Western Australia, where more people are considering downsizing. A recent report revealed that 190,000 individuals in the region plan to downsize over the next two years, which is a 14% increase since 2021.
Despite this interest, downsizing isn't without its challenges. Many older residents prefer to stay put as they age, often due to emotional ties to their homes or the perceived high cost of new, smaller properties.
There's a common perception that new, smaller homes are too expensive, which can deter potential downsizers. This belief persists even as the demand for smaller living spaces grows.
For those considering a move, it's important to weigh the benefits of downsizing against these challenges. The trend suggests a shift in lifestyle preferences, but financial and emotional factors play a significant role in decision-making.
Sources: UDIA WA
5) In 2024, 18% of Perth households used solar power, the highest rate in Australia
In 2024, about 18% of Perth households used solar power, the highest rate in Australia.
Perth's sunny climate is a major factor, providing abundant sunlight ideal for solar energy. This natural advantage makes solar power an attractive option for many residents looking to harness renewable energy.
The Western Australian government has been proactive, offering rebate schemes and feed-in tariffs that make solar installations more affordable. These incentives have significantly reduced the initial costs, making it easier for households to switch to solar.
There's also a growing awareness of renewable energy benefits among Perth residents. This shift in mindset, coupled with financial and environmental advantages, has driven the high adoption rate of solar power in the city.
While Perth leads, other regions like South Australia and Queensland also show significant solar adoption rates. However, Perth's combination of government support and natural resources sets it apart.
Sources: Solar Calculator, Target Solar
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6) About 25% of Perth suburbs saw annual price growth over 5% in 2024
In 2024, Perth's property market experienced a significant price surge, with about 25% of its suburbs seeing annual growth over 5%.
This boom was fueled by strong market conditions and a limited supply of properties, which pushed the median house price up by 24.7% for houses and 24.5% for units. The affordable south-east corridor emerged as a standout performer, with some suburbs in this area recording impressive price hikes.
While not every suburb saw gains, the south-east corridor's performance highlighted the diverse market dynamics across Perth. This variation in growth rates underscores the importance of understanding local market trends when considering property investments.
Overall market conditions, such as a decrease in property listings and faster sales times, created a competitive environment. These factors likely played a role in the substantial growth observed in a quarter of Perth's suburbs.
For potential buyers, this means navigating a market where properties are selling quicker than before, making it crucial to act swiftly and decisively. Understanding these dynamics can help in making informed decisions about where and when to invest.
As the market continues to evolve, keeping an eye on these trends will be essential for anyone looking to buy property in Perth. Staying informed about local market conditions can provide a competitive edge in this rapidly changing landscape.
Sources: Domain, Here Property, Momentum Wealth
7) Perth's vacancy rate fell to 0.6% in 2024, showing a tight rental market
In 2024, Perth's rental market became extremely competitive, with the vacancy rate plummeting to just 0.6%.
This sharp decline in available rentals was largely driven by a surge in migration, particularly from overseas, which significantly increased the demand for housing. With more people moving to Perth, the competition for the limited rental properties intensified, making it challenging for renters to find homes.
Suburbs such as Joondalup, Victoria Park, and Cannington experienced even higher demand due to their proximity to key amenities like jobs, schools, and public transport. These areas became hotspots for renters seeking convenience and accessibility.
As a result, the rental market in these suburbs became fiercely competitive, with properties being snapped up quickly. Renters were often left scrambling to secure a place, highlighting the intense pressure on the rental market in these desirable locations.
For potential property buyers, this tight rental market presents both challenges and opportunities. On one hand, the scarcity of rental properties can drive up rental prices, making it a potentially lucrative investment. On the other hand, the competition among renters can make it difficult to find tenants quickly.
Understanding the dynamics of Perth's rental market is crucial for anyone considering buying property in the area. With the vacancy rate at historically low levels, it's important to be strategic about property investments, especially in high-demand suburbs.
Sources: Here Property, Broker News
8) The average cost to build a new home in Perth increased to $450,000 in 2024
In 2024, building a new home in Perth averaged $450,000.
To understand this, consider the cost per square meter. According to Realestate.com.au, building costs in Perth ranged from $2300 to $4450 per square meter. For a typical house size of 223.2 square meters, this means a total cost between $513,360 and $993,240. This range suggests that $450,000 is a reasonable average for smaller or simpler homes.
Chross Homes offers a slightly different perspective, estimating costs between $2000 and $4000 per square meter. This translates to around $346,814 for a standard house size. Again, this supports the possibility of an average cost of $450,000, depending on design choices and features.
These figures show that while $450,000 isn't explicitly confirmed, it fits within the broader cost range for building homes in Perth during that time.
For those considering building in Perth, it's important to note that costs can vary significantly based on design and materials. Smaller, more modest homes are likely to align closer to the $450,000 mark.
Understanding these estimates helps potential buyers make informed decisions, as the cost of building can fluctuate based on various factors.
Sources: Realestate.com.au, Chross Homes
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Australia. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
9) Residential property sales in Perth rose by 12% in 2024 compared to 2023
In 2024, residential property sales in Perth jumped by 12% compared to the previous year.
This surge was fueled by a few key factors. The Real Estate Institute of Western Australia (REIWA) noted a steady increase in weekly sales transactions, indicating a robust market. The Spring selling season was particularly vibrant, with sustained demand and strong price growth driving activity.
Experts like REIWA and KPMG Australia had forecasted a significant rise in house prices by the end of 2024, which likely spurred more buying and selling. When people expect property values to climb, they tend to act quickly, boosting market activity.
Perth's property market was also shaped by strong population growth and limited housing supply. This combination created a competitive environment, pushing more transactions as buyers scrambled to secure homes.
While the exact 12% increase isn't directly confirmed by the data, the mix of consistent market activity, a strong Spring season, and positive forecasts paints a picture of a thriving property scene in Perth during 2024.
10) Perth property values have increased by 20% over the past five years
The average property in Perth has appreciated by 20% over the past five years.
Perth's property market is booming, thanks to strong population growth and limited housing stock. More people are flocking to the city, but there aren't enough homes to go around, pushing prices up. Compared to other major Australian cities, Perth's housing has been relatively affordable, making it a hot spot for buyers.
In 2024, residential property prices in Perth jumped by 21% in just 12 months. Some suburbs even saw prices soar by up to 50% in a year. This surge was fueled by favorable economic conditions and predictions of continued growth, albeit at a slower pace.
Perth's appeal isn't just about affordability. The city offers a unique lifestyle with its beautiful beaches, vibrant culture, and strong job market. These factors make it an attractive place for both locals and newcomers, further driving demand.
Investors are particularly interested in Perth due to its promising economic outlook. The city's economy is supported by industries like mining and technology, which are expected to continue growing. This economic strength adds to the confidence in the property market.
Looking ahead, while the rapid growth might slow down, the fundamentals remain strong. Perth's combination of lifestyle, affordability, and economic potential keeps it on the radar for potential buyers and investors.
Sources: Savings.com.au, Perth Property Management WA, OpenAgent
11) The average home loan in Perth is now $450,000, up 5% from 2023
The average cost of a home loan in Perth has now reached $450,000, up 5% from 2023.
This increase is closely tied to the significant growth in median house prices. For example, forecasts from NAB and Westpac have predicted substantial rises in house prices over the next couple of years. NAB expects a 23.1% rise in 2024 and an 8.3% increase in 2025, which directly impacts how much buyers need to borrow.
Not just houses, but the median unit price in Perth has also seen a notable annual increase of 23.7% as of November 2024. This surge in both house and unit prices indicates a strong demand coupled with limited supply, naturally pushing up the cost of home loans as buyers scramble to afford these higher prices.
Another factor at play is the Reserve Bank of Australia's decision to keep interest rates steady at 4.35%. While these rates have remained stable, there's talk of potential rate cuts in 2025, which could further influence borrowing costs and market trends.
These elements combined paint a picture of why the average home loan cost in Perth has risen. The interplay of rising property prices and stable interest rates creates a dynamic market environment.
Sources: Here Property, OpenAgent, Money.com.au
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12) Property listings in Perth dropped by 10% in 2024, creating scarcity for buyers
The number of property listings in Perth fell by 10% in 2024, creating scarcity for buyers.
In 2023, there were more homes on the market, but by 2024, the numbers had dropped significantly. For instance, in August 2024, only 3,266 properties were listed, compared to 5,257 during the same week the previous year. This clearly shows a reduction in available homes.
The market became tighter, with properties taking longer to sell. In July 2024, the average time to sell a house in Perth increased slightly to 9 days. This suggests that even with fewer listings, demand stayed strong, adding to the scarcity.
Buyers found it harder to secure a property due to this scarcity. The reduced number of listings meant fewer options for potential buyers, making the search for a home more challenging.
With fewer homes available, competition among buyers intensified. This situation often leads to higher prices and bidding wars, as people vie for the limited properties on the market.
Sources: Momentum Wealth July 2024, Momentum Wealth September 2024
13) Rental prices in Perth have risen by an average of 9% over the past year
Rental prices in Perth have seen a notable increase, with an average rise of 9% over the past year.
This surge is largely driven by a significant jump in both house and unit rents, which have climbed by 12.6% and 11.7% respectively. Such increases highlight the growing demand for all types of properties in the area.
Adding to the pressure, Perth's vacancy rate is remarkably low, sitting at just 0.6% as of September 2024. This scarcity of available rentals means renters are facing stiff competition, further pushing up prices.
For those considering a move to Perth, it's crucial to understand that the market is tight, with limited options available for prospective tenants. This environment can make finding a suitable property challenging.
Given these conditions, potential buyers or renters should be prepared for a competitive market, where quick decisions might be necessary to secure a property.
Understanding these dynamics can help you navigate the current landscape, ensuring you're ready to act when the right opportunity arises.
Sources: Here Property, Holdsworth
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility.