The Perth housing market is predicted to continue rising in the coming years, with the median home price potentially reaching $850,000 by early to mid-2025. Strong migration, chronic stock shortages, and high demand from east coast investors are driving the market up, with the possibility of the median price hitting $1 million in the next three to four years. The CoreLogic daily home value index shows a steady increase in house prices, with values up 0.5% over the past week and 1.9% over the past four weeks. Perth remains the third-cheapest capital city to buy a house after Darwin and Hobart.
The Domain Quarterly House Price Report revealed that house prices in Perth hit another record high last month, reaching a median of $777,921. Suburbs like Darlington, Kallaroo, Shelley, and Armadale saw significant price gains, with median prices soaring above $1 million in some areas. CoreLogic economist Kaytlin Ezzy noted a shift in buyer demand towards units, especially in capital city markets like Perth where housing prices have become unaffordable for many buyers. With the possibility of interest rates rising, more buyers are turning to the more affordable unit sector.
CoreLogic estimates that the combined value of residential real estate in Australia rose to $10.6 trillion at the end of April. The increasing value of homes reflects the ongoing demand and limited supply in the housing market, with prices expected to continue rising in the foreseeable future. The demand from east coast investors, coupled with strong migration trends and a crippled construction industry, is contributing to the upward trajectory of Perth’s housing market. Despite the challenges posed by affordability concerns and potential interest rate hikes, the market shows no signs of slowing down.
McQuillan emphasized the lack of reprieve in Western Australia’s housing market, attributing the steady rise in prices to high demand, limited supply, and population growth forecasts. The trend of east coast investors turning to WA properties is at record highs, further driving up prices and creating a competitive market for buyers. The future outlook for Perth’s housing market remains optimistic, with prices projected to continue increasing in the next few years. The combination of strong migration, low stock, and high demand is expected to keep pushing housing prices up, potentially leading to further record highs in median home prices.
