Perth median house price growth outpaced the nation in June 2024 quarter

Perth recorded the highest percentage increase in median sale price for three-bedroom houses of all capital cities in the June 2024 quarter.

Despite the increase, Perth remained one of the most affordable capitals based on median house price, according to the latest REIA Real Estate Market Facts.

The median sale price for three-bedroom houses rose 6.5 per cent over the quarter to $735,000. The next best performing capital was Adelaide with 3.6 per cent growth.

The median sale price for two-bedroom other dwellings (including home units, townhouses, flats/apartments and terrace homes) increased 5.4 per cent to $485,000. Hobart and Adelaide recorded more growth at 9.0 and 7.8 per cent respectively.

Over the year, the median sale price for three-bedroom houses recorded a gain of 26.7 per cent, while two-bedroom other dwellings rose 21.3 per cent.

REIWA CEO Cath Hart said strong population growth and limited new housing supply were driving demand for established homes, putting upward pressure on prices.

“WA’s population grew 3.3 per cent in the year to December 2023 and there were 79,000 net arrivals to the state through interstate and overseas migration,” she said.

“If you assume there are 2.5 people per household, that equates to about 31,600 new households needing accommodation.

“In the year to December there were about 16,800 private dwelling completions, which is a shortfall of about 15,000 homes when compared to population growth.

“Unless there is significant change in population growth or new building completions, we can expect more price growth over the remainder of the year.”  

Ms Hart said despite the strong increase over the three months to June, Perth continued to have one of the lowest median house sale prices in the nation, with only Hobart ($735,000) and Darwin ($567,000) equal to, or lower. 

"While prices have risen, the latest REIA Housing Affordability Report showed WA retained its position as the most affordable state for home owners, requiring 39.5 per cent of family income to meet average monthly loan repayments, compared to 48.1 per cent nationally,” she said.

“This is one of the great benefits of Perth where our relatively low median house price, higher than average income and lower than average mortgages mean home ownership here remains achievable.”

According to www.reiwa.com data, the number of sales rose 2.3 per cent quarter-on-quarter to 8,445, from 8,257 in the March quarter.

Ms Hart said figures showed there was still a very robust appetite for property in WA.

“Listings continue to come to the market in good numbers, but properties are being snapped up quickly, which highlights the strong demand for homes,” she said.

Median three-bedroom house sale prices: Perth and regional centres

The median sale price for three-bedroom houses increased from the March quarter in all Perth areas: Perth Inner (up 1.7 per cent to $1,545,500), Perth Middle (up 5.6 per cent to $850,000) and Perth Outer (up 6.3 per cent to $691,000).

It was the same story across the regions, with prices rising in Bunbury (up 9.1 per cent to $589,000), Broome (up 1.5 per cent to $685,000) and Albany (up 5.1 per cent to $572,000).

Annually, the median sale price rose in all metropolitan areas: Perth Inner (up 21.7 per cent), Perth Middle (up 23.2 per cent) and Perth Outer (up 28.8 per cent).

Bunbury (up 30.9 per cent), Broome (up 7.2 per cent) and Albany (up 23 per cent) also recorded significant growth over the year.

Median two-bedroom other dwelling sale prices: Perth and regional centres

Over the three months to June, the median sale price for two-bedroom other dwellings rose in Perth Inner (up 5.4 per cent to $550,000), Perth Middle (up 9.2 per cent to $500,000) and Perth Outer (up 2.4 per cent to $425,000).

In regional WA, the median sale price increased in Bunbury (up 23.8 per cent to $402,500), Broome (up 5.3 per cent to $420,000) and Albany (up 19.3 per cent to $340,000).

Over the past 12 months, the median sale price for two-bedroom other dwellings saw growth in Perth Inner (up 17 per cent), Perth Middle (up 25 per cent) and Perth Outer (up 25.4 per cent).

The regional centres also recorded increases in their median sale price for two-bedroom other dwellings over the year: Bunbury (up 15 per cent), Broome (up 7.7 per cent) and Albany (up 10.6 per cent).

Rental market

Median weekly rent

Median rent prices for three-bedroom houses in Perth rose 3.3 per cent to $620 per week in the June quarter and 12.7 per cent year-on-year. 

The median weekly rent for two-bedroom other dwellings remained stable at $600 quarter-on-quarter, a rise of 20 per cent from 12 months ago.

The median weekly rent for three-bedroom houses rose in all capital cities except Sydney, where it remained stable at $700. Melbourne saw the largest quarterly increase, rising 3.8 per cent to $550 per week.

Ms Hart said the frenzied conditions of the Perth rental market in the past couple of years were easing.

“We’re seeing changes in demand along with new supply coming to the market,” she said.

“This is reflected in the latest reiwa.com data, which shows median rent prices have been stable for several months, rental listings are increasing and homes are taking slightly longer to lease.”  

Median three-bedroom house rent prices: Perth and regional centres

Results were mixed across the metropolitan area compared to the previous quarter. Perth Outer rose 4 per cent to $645 per week, Perth Inner remained stable at $800 per week and Perth Middle decreased 0.7 per cent to $690 per week).

Regional WA saw similar mixed results: Broome (up 4.3 per cent to $1,200 per week), Bunbury (unchanged at $600 per week) and Albany (down 1 per cent to $495 per week).

Over the past year, there was an upward trend in all Perth sub-regions: Perth Inner (up 8.1 per cent), Perth Middle (up 15 per cent) and Perth Outer (up 17.3 per cent).

This was comparable in the regions in the 12 months to June: Bunbury (up 11.1 per cent), Broome (up 20 per cent) and Albany (up 8.8 per cent).

Median two-bedroom other dwelling rent prices: Perth and regional centres

Median rent prices for other dwellings were higher than the March 2024 quarter across Perth: Perth Inner (up 4 per cent), Perth Middle (up 3.4 per cent) and Perth Outer (up 7.8 per cent).

In regional WA, the southern centres recorded gains over the same reporting period, with Bunbury (up 19.6 per cent to $550 per week) and Albany (up 12 per cent to $560 per week) recording growth. In the north, Broome saw median prices decrease 9.1 per cent to $750 per week.

All metropolitan areas recorded increases in rent prices compared to the same time last year: Perth Inner (18.2 per cent), Perth Middle (up 20 per cent) and Perth Outer (up 22.2 per cent).

It was the same across regional WA: Bunbury (up 15.8 per cent), Broome (up 42.9 per cent) and Albany (up 17.9 per cent).

Vacancy rate

Perth remained the tightest rental market in the nation with a vacancy rate of 0.5 per cent at the end of the June quarter.

This was 0.1 per cent above the March 2024 quarter, but a 0.3 per cent decline from the June 2023 quarter.