Perth Property Market Update: April to June Quarter 2024

The Perth property market has remained resilient in the second quarter of 2024, despite inflation and interest rate increases.

Since the rental market is not oversaturated, property investors continue to consider the Perth real estate market as an attractive investment opportunity.

In this quarterly update, we will provide you with everything you need to know about the Perth property market from April to June 2024, covering rental rates and yields, rental demand, and median rents in different suburbs.

Rental Rates and Yield in Perth Show Steady Growth

The CoreLogic Report confirms that the Perth market has continued to see positive growth this quarter, despite high interest rates and inflationary pressures in Australia.

The current median rent for houses is $650 per week, and the median rent for units is $600 per week. As for the current gross rental yield, it is 4.4%.

Over the past 12 months, Perth has characteristically recorded the highest annual rent increase across all Australian capital cities, as rents have increased by 13.2%

As a result, Perth leads other capital cities, including Melbourne, Brisbane, and Sydney, whose rent increase rates have reached 8.5%, 8.0%, and 7.9%, respectively.

Moving on to vacancy rates, Perth’s vacancy rate has remained low over the past 12 months and is expected to stay low, dropping from 0.7% to 0.5%. Low vacancy rates indicate that the demand for rental properties in Perth is high, which is continuing to drive rents up.

Perth’s gross yields have decreased over the past 12 months, following a jump in home values, from 4.89% to 4.4%. This is still above the national gross yield, which has remained almost steady for the last 19 months, at about 3.7%.

These insights suggest that the property market in Perth is holding up quite well considering national trends, with a steady increase in rents and a decrease in vacancy rates.

Rent Stabilises For the First Time in Years

According to Reiwa, Perth’s median rents have not significantly changed since March, which indicates that the market is slowly stabilising for the first time in years.

Still, rent prices are at a record high, and home value is growing at a high rate compared to other capital cities. To illustrate, Perth recorded the highest quarterly increases in home values for both houses and units, which are 6.4% and 6.8%, respectively.

On the ground, attendance to rental viewings has dropped over the quarter and properties are taking longer to lease, especially where the asking rent is above the median rental price.

All of these trends suggest that the Perth property market is slowly shifting from a market with high demand and low supply to one with balanced supply and demand.

Yet, rents and annual growth are at a record high,so the market is not oversaturated in a way that causes rents to drop.

Median Rents: The Highest Performing Suburbs and the Most Affordable Suburbs

The Perth property market has shown a curious link between the top-performing and the most affordable suburbs for both houses and units as many affordable suburbs have been shown to perform remarkably well.

Across the greater Perth region, the suburb with the top annual price growth is Viveash (at 40.9%) whose median rental price is $750 per week and median house price is $620,000, followed by Hillman, Armadale, Midvale, and Shelley.

Medina is the most affordable suburb for house rentals, with a median rent of $530 per week and a median value of $416,500. The annual price growth is 25.3%.

For unit rentals, Cottesloe is the top suburb for price growth in Perth with a median rent of $1400 per week and a price growth of 50.9%. As for the most affordable Perth suburbs for unit rentals, they are Thornlie with a median rent of $680 per week, along with Balcatta, Banksia Grove, Belmont, and Bentley.

Get a Free Rental Appraisal!

With the data showing steady growth in the Perth property market, offering your investment property to potential tenants might be a good idea.

However, it is vital to get your property assessed by experts to determine the optimal rate for your property’s location, size, and condition.

Maximise your investment property potential with your free rental appraisal today!