Perth Property Market Quarterly Update: January to March 2024
In the first quarter of 2024, the Perth property market continued its upward trend, seeing noticeable growth with steady demand and rising home and rental values.
In our quarterly review of the Perth property market, our goal is to give you a detailed, data-backed review of the market dynamics so you make informed decisions for your rental business.
Here’s everything you need to know!
Rental Rates and Yield in Perth on the Rise
Based on recent findings from CoreLogic, the national quarterly growth rate has increased from 1.4% in Q4 2023 to 1.6% in Q1 2024. Perth has witnessed a similar trend; the median dwelling rent has grown substantially in Q1 2024, reaching $649 per week in March up from $630 in February and a whopping 18% increase compared to the same period last year.
Moreover, housing values in Perth have increased by 1.9% over the month, showcasing a much faster growth rate than in other capitals. For example, Brisbane only grew by 1.1%, while Melbourne experienced a negative quarterly growth rate (-0.2%).
As for weekly rent, the median weekly rental value has increased by 18.2% for houses compared to Q1 last year. Units have experienced similar growth, with median rent for units climbing to $600 per week and 20% year-on-year increases.
The number of listings remained low, with rental listings sitting just below 2000 for most of the past year. The fast turnover of supply resulted in a median leasing time of 15 days in March.
The rise in rental rates was also accompanied by rising median property sale prices, which reached a record high of $620,000 in March for houses and $420,000 for units, recording 2.5% and 1.2% rises, respectively.
Steady Demand for Rental Properties in Perth
As mentioned earlier, the demand for rental properties in Perth has been consistent in the first quarter of 2024. Some of the key factors that drive this high demand include:
Population Growth and Limited Supply
With the increasing WA population and lagging dwelling completions, the competition for homes is higher than ever. This explains why the rental values have reached a record high of $645 per week. The region is currently experiencing a housing shortage and increased demand for rentals.
Low Vacancy Rates
The number of rental listings has decreased by up to 4.2% in March 2024 compared to the same month last year. This implies that Perth is a place where tenants prefer to settle on a long-term basis, particularly due to the affordability and the job opportunities that the Perth job market offers.
Properties in Certain Suburbs Are Getting Leased Faster
As a property investor, long vacancies can negatively impact your rental business, both in the short and long term. In Perth, in some suburbs like Piara Waters, Highgate, and Doubleview, the median rental days were lower than in other suburbs. For example, in Highgate, the median number of days to lease is just 6 days, much lower than the regional average of 15 days.
Properties in Piara Waters and Doubleview also get new tenants pretty quickly, with median leasing days of 7 and 8 days, respectively. Other suburbs that have low vacancy rates include:
- Inglewood and Palmyra (nine days)
- Westminster, Balcatta, Fremantle, Innaloo and Treeby (10 days)
Discover the best suburbs and rental yields for an investment property in Perth’s metro.
Perth Compared to Other State Capitals
Despite the rapid pace of capital gains in Perth’s housing market, housing values remain relatively affordable compared to larger capital cities.
This affordability, coupled with the strong demand for rental properties, attracts both local renters and interstate migrants to the Perth rental market.
Local Buyers Are Shaping Up the Perth Property Market
Recent data suggest that the WA region has become more attractive for real estate investors, specifically due to its lower prices and higher ROIs.
However, despite this trend, investors are still price-sensitive and may favour other regions in Eastern Australia, for example. In contrast, local buyers, who are more emotionally or professionally attached to certain Perth suburbs, may be more willing to pay higher to stick to their favourite suburbs, which has contributed to the noticeable growth in rental values over the past few months and even years.
Get a FREE Rental Appraisal!
Take advantage of the flourishing Perth property market by securing a complimentary rental appraisal! The Perth Property Market shows promising growth in 2024. Now is the best time to have professionals evaluate your property to help you adjust your rental rate per market conditions.
Contact us now for a FREE rental appraisal!
