Perth had by far the highest house price growth of any capital city over the December 2023 quarter, but still remains the second most affordable in the country, according to the latest REIA Real Estate Market Facts.
The median sale price for three-bedroom houses in Perth rose 7.5 per cent over the quarter to $645,000, while the national median price increased 1.8 per cent to $1,005,242.
The median sale price for two-bedroom other dwellings in Perth rose 3.7 per cent to $425,000.
On an annual basis, this was an increase of 15.6 per cent for three-bedroom house prices in Perth and 7.3 per cent for two-bedroom other dwellings.
REIWA CEO Cath Hart said pricing for established homes is being driven by strong population growth, a strong economy and low building commencements and completions.
“Homes are selling in record times, highlighting the demand for established property,” she said.
“The Perth market has weathered the rising interest rate climate extremely well, demand remains high, and properties are selling extremely quickly.
“If market and economic conditions remain the same and rates fall, we can expect demand and consequently prices to rise further.”
In other capitals, median prices for houses increased in Brisbane (4.4 per cent), Adelaide (3.9 per cent), Hobart (2.4 per cent), Sydney (2.0 per cent) and Canberra (1.1 per cent), but decreased in Darwin (-5.1 per cent) and Melbourne (-2.2 per cent).
Ms Hart said while Perth recorded the largest increase in house prices, WA was still among the most affordable property markets in the country.
“Despite the increase in prices, Perth remains one of the most affordable cities nationwide for home ownership – only behind Darwin,” she said.
“Sydney house prices are over 2.4 times higher than ours. Average monthly loan repayments in WA are $4,123, considerably lower than New South Wales at $6,313 and our median weekly family income is $100 per week higher than New South Wales.”
Median three-bedroom house sale prices: Perth and regional centres
Over the quarter, the median price for three-bedroom houses increased across all areas: Perth Inner (6.3 per cent), Perth Middle (4.2 per cent) and Perth Outer (7.1 per cent).
In regional WA, median house prices increased in Bunbury (6.4 per cent), Broome (6.3 per cent) and Albany (2.0 per cent).
It was a similar story over the year: Perth Inner (12.1 per cent), Perth Middle (8.6 per cent) and Perth Outer (18.8 per cent).
Regionally, Bunbury saw significant growth (15.7 per cent) over the year, followed by Albany (7.7 per cent) and Broome (3.8 per cent).
Median two-bedroom other dwelling sale prices: Perth and regional centres
In the December quarter, the median price for two-bedroom other dwellings increased across all areas: Perth Inner (1.0 per cent), Perth Middle (5.7 per cent) and Perth Outer (6.3 per cent).
Across the regions, median prices increased in Bunbury (13.6 per cent) but decreased in Broome (-4.9 per cent) and Albany (-17.4 per cent).
Over the past year, the median price for other dwellings increased in all areas: Perth Inner (5.9 per cent), Perth Middle (8.3 per cent) and Perth Outer (18.1 per cent).
In the regions, Bunbury (8.1 per cent) and Broome (6.1 per cent) recorded an annual increase while Albany (-12.2 per cent) declined.
Median weekly rent
Over the December quarter, median weekly rent prices for three-bedroom houses in Perth rose 5.5 per cent to $580 per week, while prices for two-bedroom other dwellings remained unchanged at $550 per week.
Annually, three-bedroom houses increased 17.2 per cent and two-bedroom other dwellings increased 22.2 per cent.
The median rent for three-bedroom houses increased in all capital cities except Sydney, where it remained stable.
Darwin saw the largest quarterly increase of 6.8 per cent to $600 per week.
Ms Hart said while rents were at record highs there were only three states more affordable than WA over the December quarter.
“Tenants in New South Wales required the highest proportion of income to meet rent payments at 27.3 per cent while in WA it was 22.4 per cent,” she said.
Median house rent prices: Perth and regional centres
Over the December quarter, the median rent for three-bedroom houses increased in all areas: Perth Inner (6.0 per cent), Perth Middle (4.8 per cent) and Perth Outer (3.5 per cent).
In regional WA, rents increased in Broome (5.0 per cent), Bunbury (3.6 per cent) and Albany (2.2 per cent).
Over the year, the median rent for three-bedroom houses increased across all areas: Perth Inner (13.6 per cent), Perth Middle (18.2 per cent) and Perth Outer (18.0 per cent).
The regions saw a sharp increase over the year led by Albany (17.9 per cent), Broome (16.7 per cent) and Bunbury (16.3 per cent).
Median two-bedroom dwelling rent prices: Perth and regional centres
Over the quarter, the median rent for two-bedroom other dwellings increased in all areas: Perth Inner (3.4 per cent), Perth Middle (5.8 per cent) and Perth Outer (4.3 per cent).
Regionally, all three centres recorded an increase over the quarter: Albany (29.4 per cent), Bunbury (19.4 per cent) and Broome (3.8 per cent).
Annually, rents for two-bedroom other dwellings increased across all areas: Perth Inner (20.0 per cent), Perth Middle (22.2 per cent) and Perth Outer (19.5 per cent).
While rents increased over the year in Albany (36.6 per cent) and Bunbury (4.9 per cent), Broome rents remained stable.
Vacancy rate
Perth’s vacancy rate remained stable at 0.7 per cent over the December 2023 quarter. This was a marginal increase of 0.1 percentage points over the past year.
Ms Hart said during a balanced market, the vacancy rate usually sits between 2.5 and 3.5 per cent.
“The last time it was over 3.5 per cent was September 2018 when it was 3.8 per cent,” she said.
The weighted national average of vacancy rates from the eight Australian capital cities decreased 0.1 percentage points over the quarter to 1.5 per cent, with vacancy rates decreasing in Sydney (0.2 percentage points) and Adelaide (0.1 percentage points) but remaining stable in all other capital cities.
Perth remains one of the tightest rental markets in the nation behind Adelaide (0.5 per cent) and remains only one of two capital cities with a vacancy rate below 1 per cent.
