The Australian housing market is experiencing significant price growth, with suburbs in Perth’s outer regions leading the way. Ray White Group chief economist Nerida Conisbee noted that it is now more affordable to buy an established home than to build a new one, driving more buyers into the established market. Suburbs such as Maddington, Armadale, Gosnells, Camillo, and Calista have seen price growth of over 25% in the past 12 months. The median unit sale prices have also shown strong growth, reaching $425,000 in March 2024, which is 6.3% higher than the previous year.
In addition to the rising prices, the rental market in Perth has also experienced record-setting figures. The median weekly dwelling rent reached a new high of $650 at the end of March, up 8.3% from the previous quarter and 18.2% from the previous year. Both house and unit rents also set records, with a 4.8% and 5.3% increase respectively over the quarter. Rental listings remained low, with vacancy rates dropping to a record low of 0.4% by the end of March. Cath Hart from REIWA noted that there are signs of demand moderating in some sectors, with some tenants opting to buy instead of renting, larger household sizes, and people staying in their family homes longer.
Despite the strong demand and rising prices, there are indications that supply is starting to increase. Newly built homes owned by investors from eastern states are entering the rental market, particularly in outer-lying suburbs with available land for development. A refurbishment project in Maylands was also completed in March, adding over 100 apartments to the market. It is hoped that this increase in supply will help alleviate some of the pressure on the rental market and provide more options for tenants. Overall, there is a shift towards affordability and accessibility in the real estate market, with buyers and renters seeking value and options that fit their budget and needs.
The ongoing housing crisis in Australia has led to a situation where it is now more cost-effective to buy an established home rather than build a new one. This has driven more buyers into the established market, particularly in suburbs in Perth’s outer regions where prices have seen significant growth. The median unit sale prices have also shown strong growth, reaching $425,000 in March 2024, which is 6.3% higher than the previous year. The rental market in Perth has also experienced record-setting figures, with the median weekly dwelling rent reaching a new high of $650 at the end of March, up 8.3% from the previous quarter and 18.2% from the previous year. Rental listings remained low, with vacancy rates dropping to a record low of 0.4% by the end of March.
Despite the challenges posed by the housing crisis, there are signs that supply is starting to increase. Newly built homes owned by investors from eastern states are entering the rental market, particularly in outer-lying suburbs with available land for development. A refurbishment project in Maylands was also completed in March, adding over 100 apartments to the market. It is hoped that this increase in supply will help alleviate some of the pressure on the rental market and provide more options for tenants. Overall, there is a shift towards affordability and accessibility in the real estate market, with buyers and renters seeking value and options that fit their budget and needs.
