Sell with Confidence
Read More
News

What’s in Store for 2024?

By Hayden Groves

With Perth’s property market growth leading the nation as at the end of last year, some property commentators are predicting a slow-down in capital gains as the year progresses. Returning a 13.7 percent growth rate in property values to date 2023, Core Logic data showed Perth ahead of the rest of the nation in growth with Brisbane the next strongest market performer with 10.7 percent value gains.

Perth is at its market peak reaching a median dwelling value of around $650,000 at the end of last month. Yet, despite Perth’s strong market performance, our local market remains the most affordable major capital city aside from Darwin in terms of median prices comparative to average family incomes.

It is this relative affordability, strong economy, full employment, an uplift in migration intakes and limited housing supply that will continue to drive our market forward. Whilst it is always difficult to accurately predict property markets, in the absence of significant and unexpected market shocks, WA residential property is likely to put in another strong showing in 2024 with 8 to 12 percent gains predicted.

Turning to the rental market, with vacancy rates below 1 percent for most of 2023 caused by a lack of housing supply, it will take some time to deliver enough homes to the market sufficient to bring the rental market back into balance.

Rents have risen sharply since mid 2020 after a decade of falling and stable rents, rising a further 13 percent last year. Strong demand from incoming residents and low supply remains the core cause with little relief in sight for tenants struggling to secure suitable accommodation. With less than 2000 properties listed for rent on reiwa.com, supply constraint due to a lack of investor buying activity over the past decade has seen house rents move from $350 per week in 2017 to $600 per week today.

Investors have come storming back to the Perth market as they exit the overheated east coast city markets and look to capitalise on the prospect of price growth and nation-leading yields. As more supply comes to market, rents could moderate this year but further rent rises of at least 5 to 10 percent is likely thanks to the slow construction cycle and lacklustre dwelling approval numbers.

Overall, WA is the place to watch in 2024 as its property market continues to expand from a base of relative affordability.

Up to Date

Latest News

  • Giving at Christmas

    The National Hotel and St. Patrick’s Community Support Centre hold their annual long table dinner event each November to raise much-need funds to assist those without a place to call home. This year’s was a cracker and a shout-out to Karl and Janine Bullers for their inspiration. You see evidence … Read more

    Read Full Post

  • Has the Market Peaked?

    The media and government have thrown about the phrase ‘housing crisis’ in recent times to highlight the challenges of Australia’s housing market. The overuse of a slogan can reduce the seriousness of the challenge of housing affordability. Last week, the federal government finally got legislation through the parliament designed to … Read more

    Read Full Post