WA property prices continued their rise in the March 2024 quarter: REIA

Median house and rent prices rose in Perth during the March 2024 quarter, according to the latest REIA Real Estate Market Facts.

The median sale price for three-bedroom houses increased 3.8 per cent over the quarter to $675,000, while the median sale price for two-bedroom other dwellings (such as home units, townhouses, flats/apartments and terrace homes) rose 7.0 per cent to $460,000.

Three-bedroom houses recorded an increase of 20.5 per cent over the year to March, while two-bedroom other dwellings rose 15.0 per cent.

REIWA CEO Cath Hart said despite the increase in median sale prices, Perth remained relatively affordable, particularly when compared to the Eastern States.

“WA’s median house sale price is nearly two and a half times more affordable than Sydney at $1,628,000 - with only Darwin more affordable,” she said. 

“Perth’s other dwelling median price is now gaining momentum after being flat for some time as the strong competition for houses pushes more people to consider the options like units, townhouses and apartments to secure a home.

“As a result, the median price for other dwellings has increased 7.0 per cent over the quarter and 15 per cent over the year. Despite this it is also the second lowest in the country.”

Source: REIA

Ms Hart said ongoing strong population growth, constraints in the building industry and the challenges of the rental market have sustained high demand for established homes, fuelling price growth. 

“The demand for established property in WA is evident from houses and units selling in record times,” she said. 

“We expect further price increases over coming months in WA unless there is an unforeseen change in demand and supply.”

Nationally, five capitals recorded an increase in their median sale price for three-bedroom houses over the quarter. Perth was the best performer, followed by Adelaide. Hobart and Canberra saw their median price decline.

Perth also recorded the most growth in its median sale price for two-bedroom other dwellings. The median sale price declined in Canberra and Darwin.

While Perth is one of the most affordable capitals based on median price, it is also one of the most affordable based on the proportion of income needed to meet mortgage payments. 

“This is one of the great benefits of Perth, and WA, our relatively low median house price, higher than average income and lower than average mortgages, mean home ownership is still achievable,” Ms Hart said.

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

Over the quarter, the median sale price for three-bedroom houses increased in Perth Middle (+4.2 per cent to $787,000) and Perth Outer (+6.2 per cent to $643,500) but decreased in Perth Inner (-6.7 per cent to $1,390,000).

In regional WA, the median increased in Bunbury (+7.8 per cent to $538,900) and Albany (+3.0 per cent to $535,500) but decreased in Broome (-2.2 per cent to $660,000). 

Annually, the median house sale price rose across all Perth areas: Perth Inner (+13.0 per cent), Perth Middle (+17.2 per cent) and Perth Outer (+23.8 per cent). 

Bunbury (+22.7 per cent), Broome (+11.9 per cent) and Albany (+11.6 per cent) also saw strong growth over the year. 

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

Over the three months to March, the median sale price for two-bedroom other dwellings increased in Perth Inner (+2.6 per cent to $520,000), Perth Middle (+5.8 per cent to $455,000) and Perth Outer (+10.7 per cent 4415,000).  

In regional WA, the median increased in Broome (+1.0 per cent to 4393,800), remained stable in Bunbury at $325,000 and decreased in Albany (-1.8 per cent to $277,500). 

Over the past 12 months, the median sale price for other dwellings increased in Perth Inner (+9.5 per cent), Perth Middle (+15.8 per cent) and Perth Outer (+27.7 per cent). 

In the regions, Bunbury (+4.0 per cent) and Broome (+6.9 per cent) recorded annual increases in the median sale price for other dwellings, while Albany (-28.8 per cent) saw a decline. 

Rental market

Vacancy rate 

In the March quarter, the vacancy rate in Perth decreased to 0.4 per cent, a decline of 0.3 percentage points over the quarter and year. This was the largest drop in the country.

Perth was the tightest rental market in the country and was one of only two states to record a vacancy rate below 1 per cent. Adelaide’s rental market was also extremely constrained, with a vacancy rate of 0.5per cent.

Source: REIA

Median weekly rent 

Median weekly rent prices increased 3.4 per cent to $600 for three-bedroom houses and 9.1 per cent to $600 for two-bedroom other dwellings over the quarter.

Annually, median weekly rents for three-bedroom dwellings have risen 16.5 per cent and 21.2 per cent for two-bedroom other dwellings. 

The very low rental vacancy rate in Perth has been driving price pressure, however Ms Hart noted Perth rents still remained relatively affordable based on the percentage of median weekly income required to meet rental payments.

“Rents are at record highs, but they only require 23.0 per cent of median weekly income – only Queensland, Victoria and the ACT are more affordable on this basis,” she said. 

“While rent prices are expected to continue to grow over 2024, we expect the rate of growth to slow.

“Members are reporting more supply and an easing of competition in some suburbs, and investor lending is increasing. This points to a potential moderation of prices in the future.”

Proportion of family income needed to meet rent payments

Source: REIA

Median houses rent prices: Perth and regional centres 

Over the quarter, the median weekly rent for three-bedroom houses increased in all Perth areas: Perth Inner (+0.6 per cent to $800), Perth Middle (+6.9 per cent to $695) and Perth Outer (+5.1 per cent to $620).

In regional WA, median rents increased in Bunbury (+5.3 per cent to $600), Broome (+9.5 per cent $1,150) and Albany (+8.7 per cent to $500).

Over the year, the median rent for three-bedroom houses also increased in all Perth areas: Perth Inner (+11.5 per cent), Perth Middle (+19.8 per cent) and Perth Outer (+17.0 per cent).

Annually, all regions saw increases in their median house rent: Bunbury (+16.5 per cent), Broome (+23.7 per cent) and Albany (+11.1 per cent).  

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

The median weekly rent for other dwellings increased in all Perth areas in the March quarter: Perth Inner (+4.2 per cent to $625), Perth Middle (+5.5 per cent to $580) and Perth Outer (+4.1 per cent to $510). 

In regional WA, the median rent increased in Bunbury (+7.0 per cent to $460) and Broome (+22.2 per cent to $825) but fell in Albany (-29.5 per cent to $387.50). 

Annually, all Perth areas recorded increases in their median rent for other dwellings: Perth Inner (+17.9 per cent), Perth Middle (+20.8 per cent) and Perth Outer (+21.4 per cent).

Looking at the regions, Bunbury (+31.4 per cent), Broome (+50.0 per cent) and Albany (+9.2 per cent) all saw their median rent increase.