As we step into the promising realm of 2024, Network Exchange Realty takes a reflective pause to assess the accuracy of our 2023 predictions and sets the stage for forecasting the dynamic trends that await the Perth property market in the coming months.
A Reality of Growth in 2023
True to our predictions, 2023 was a year marked by substantial annual growth in the Perth property market. The synergy between supply and demand dynamics played a pivotal role in driving these growth trends. As we peer into the horizon of 2024, the anticipation is that this upward trajectory will persist, buoyed by the ongoing equilibrium between the availability of properties and the ever-growing demand.
Insights from REIWA CEO, Cath Hart
Cath Hart, the CEO of the Real Estate Institute of Western Australia (REIWA), sheds light on the persistent pressure on prices arising from the interplay of high demand and limited supply. This scenario is expected to translate into a robust market, with implications for median rents that are poised to elevate throughout the year.
A Peek into the Future of 2024
The Perth property market is poised to maintain its strength, and key highlights for the year include:
- Perth’s Median Price Growth: Following an 8.0% rise in 2023, Westpac forecasts another 8.0% growth for 2024.
- Demand vs Supply: The perennial challenge of high demand coupled with low supply continues to drive prices upward, setting Perth apart from other Australian capitals.
- Population Growth: Western Australia’s robust population growth remains a driving force behind the buoyancy of the property market.
- Interest Rate Impact: Despite rising interest rates, the market is expected to withstand the pressure, with demand showing resilience.
Median Dwelling Price Projections
House Prices:
Expected to start the year with 8.2% growth, peak at 8.4% in June, and settle at 8.0% by year-end.
Projected to reach $690,000 by June 2024, with a slight decrease anticipated thereafter.
Unit Prices:
Predicted growth of 3.4% at the beginning of 2024, peaking at 3.9% in June and slowing to 1.3% by the end of the year.
Forecasted to reach $459,000 by 2025.
The Rental Market
Perth’s rental market remains robust, characterized by low vacancy rates and high rental yields. The median house rent is projected to reach $600 per week, indicating a substantial increase from the previous year.
Factors Driving Growth
Economic Upswing: The thriving Western Australian economy is providing support for both first-home buyers and renters.
Population Growth and Low Unemployment: High population growth and low unemployment rates are contributing to sustained demand.
COVID-19 Impact: Post-pandemic migration trends and the reopening of borders are expected to further bolster the property market.
Addressing Housing Supply
In response to the shrinking house supply, the government has announced initiatives vital for maintaining market stability.
The Importance of Property Appraisal
In this dynamic market, regular rental appraisals are crucial for property investors and landlords to navigate price fluctuations effectively.