The Perth property market has demonstrated remarkable strength and resilience in recent years. Both commercial and residential sectors are thriving, supported by robust economic conditions, population growth, and an ongoing supply-demand imbalance.
Evaluating your property value in this dynamic environment requires understanding current market trends, leveraging professional appraisals, and considering the unique factors influencing the Perth real estate landscape. ProProperty Group is here to help you navigate this vibrant market with expert insights and professional services tailored to your needs.
Residential property market overview
The residential property market in Perth has seen significant growth since the pandemic. Perth’s median house price increased by over 25% from the COVID-19 through to the July 2022 peak. The market continues to climb, setting new records. The median house price in Perth as of late April 2024 is $753,947, reflecting a significant increase from $630,000 in April 2023.
Several factors contribute to this upward trajectory. Perth remains relatively affordable compared to other Australian capitals. For instance, the median dwelling value in Perth is significantly lower than Sydney’s $1.125 million. This affordability, coupled with strong population growth and economic stability, drives demand.
The Real Estate Institute of Western Australia (REIWA) forecasts a 10% growth in house prices for 2024, continuing the trend of robust annual growth seen in recent years. High demand, low supply, and strong rental yields support this optimistic outlook. The current rental yield in Perth is one of the highest in Australia, standing at 4.0% as of May 2024.
Commercial property market dynamics
The commercial property sector in Perth also reflects the strong market conditions. The demand for commercial real estate, particularly in prime locations, remains high. This demand is driven by the city’s economic growth, population increase, and significant investments in infrastructure and development projects. As a result, businesses are expanding and new enterprises are emerging, which further fuels the demand for commercial spaces.
The latest PCA Office Market Report shows that Perth’s CBD total vacancy rate decreased to 14.9% for the six months ending January 2024, down from 15.9% in July 2023, reflecting a tightening market. This trend highlights the increasing confidence among businesses to establish and grow their presence in Perth.
Additionally, the retail sector is experiencing positive momentum, with increased consumer spending and a boost in tourism driving the demand for retail spaces. These factors collectively underscore the strength and attractiveness of Perth’s commercial property market.
Factors influencing property values
Several key elements play a significant role in shaping property prices, each contributing to the dynamic and competitive nature of the market in Perth:
Economic growth: Western Australia’s economy is thriving, supported by the mining and resources sector, which continues to attract investment and drive employment. This economic stability supports both residential and commercial property markets.
Population growth: Perth is Australia’s fastest-growing city. Perth’s population growth, driven by interstate migration and overseas arrivals, has increased the demand for housing. The current metro area population of Perth in 2024 is 2,143,000, a 1.18% increase from 2023.
Supply and demand imbalance: The ongoing supply shortage, with fewer new dwellings being built compared to the rising demand, places upward pressure on property prices. Perth added only 48,500 dwellings over the past four years while the demand increased by over 80,000.
Interest rates: Despite rising interest rates, the demand for property in Perth remains strong. The affordability of Perth properties compared to other major cities makes it an attractive option for investors and homebuyers.
Government policies: Various government initiatives aimed at boosting housing supply and affordability may influence property values. These policies include grants for first-home buyers and incentives for property developers to increase housing stock.
Evaluating your property value: how ProProperty Group can help
To accurately evaluate your property value in this strong market, consider leveraging the expertise of ProProperty Group. Here’s how we can assist:
Professional appraisal
Engage one of our qualified property valuers or real estate agents to conduct a comprehensive appraisal. Our team will assess factors such as location, property condition, recent sales of similar properties, and current market conditions to provide you with an accurate and reliable property valuation.
Market analysis
Stay informed about the latest market trends and statistics through our detailed market analysis reports. We utilise insights from CoreLogic, REIWA, and other leading real estate data providers to offer valuable information on market performance and future projections. This data helps you make informed decisions about your property.
Comparable sales
Review recent sales of comparable properties in your area with our assistance. Our agents conduct thorough comparative market analyses to gauge the current market value of your property based on recent transactions. This approach ensures that you have a clear understanding of where your property stands in the current market landscape.
Property improvements
Consider any improvements or renovations that could enhance your property’s value. Our team at ProProperty Group offers expert advice on upgrades to kitchens, bathrooms, and outdoor areas that can significantly increase your property’s appeal and market value. We provide guidance on cost-effective improvements that yield the best return on investment.
Conclusion
The Perth property market in 2024 presents a robust environment for both residential and commercial properties. With ongoing economic growth, population increases, and a persistent supply-demand imbalance, property values are set to continue rising. Evaluating your property value in this strong market requires a thorough understanding of current trends, professional appraisals, and strategic improvements.
By leveraging the expertise of ProProperty Group and staying informed about market developments, property owners and investors can confidently navigate Perth’s dynamic real estate landscape, ensuring they maximise their investment potential and capitalise on strong market conditions. Contact ProProperty Group today to get started on your property evaluation and make the most of this thriving market.
