Perth house price growth triples nation

2 March 2024
Matthew Hughes
Source: Business News
By: Claire Tyrrell


The capital continues to outpace the rest of Australia, posting a 1.8 per cent increase in home values in January and an 18 per cent rise in the past 12 months.

Perth has continued to dominate the country in house price growth, with a 1.8 per cent uptick in dwelling values in January, three times that of the national average.

CoreLogic’s latest home value index shows Perth’s median values grew to a new peak of $687,004 last month, up from $676,823 in December.

Nationwide, home values grew by 0.6 per cent to a $765,762 median, according to the index.

In the 12 months to January 31, Perth’s home values have grown by 18.3 per cent, the highest in the country and well above the national average of 8.9 per cent.

The city is nearing Adelaide’s median values, which were $727,142 in January.

Industry experts say Perth is usually on par with Brisbane, which has a median dwelling price of $805,593.

Sydney continues to be the highest priced capital, with a $1.13 median value, followed by Brisbane.

Hobart was the only state that had a decline in its home values, with a 0.3 per cent drop in January.

CoreLogic research director Tim Lawless said Perth was benefitting from comparatively lower housing prices and positive demographic factors that continue to support housing demand.

“Housing values have been more than resilient in the face of high interest rates and cost of living pressures,” he said.

“The ongoing rise in housing values reflects a persistent imbalance between supply and demand which varies in magnitude across our cities and regions.”

He said the fundamentals of Perth values remained solid, with strong demand fuelled by a interstate and overseas migration and investment activity that is tracking close to levels last seen during the mining boom.

“From a supply perspective, we are still seeing dwelling commencements trending lower and approvals remain well below average,” he said.

Mr Lawless added that despite the strong capital gains in recent years, Perth’s housing values remained relatively affordable.

“The affordability of housing is a legacy of the long running underperformance of the Perth housing market where values were generally flat to falling between 2014 and 2019,” he said.

“The average annual growth rate over the past decade is the second lowest amongst the capital cities (after Darwin) with home values up just 3 per cent per annum, on average since 2014.

“The combined capitals have seen an average annual growth rate of 5.5 per cent, and the highest capital gain over the past ten years has been Sydney with an annual capital gain of 6.3 per cent; more than double that of Perth.”

Proptrack reported 0.54 monthly growth in Perth, compared with a national rise of 0.48 per cent for the capital cities.

The REA Group index recorded Perth’s median home value at $651,000.

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Written by Terry Rider and Matthew Hughes

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