Experts predict that property prices will skyrocket in the bustling city in 2024
Perth's real estate market is red hot, with some interstate buyers significantly overpaying for Perth homes after battling it out in a bidding war. According to Hotspotting’s ‘Price Predictor Index’, Perth finished 2023 as the best capital city in terms of price growth performance.
Many property experts are now focusing on what the Perth market has to offer, with experts predicting prices to skyrocket throughout 2024.
Currently, Perth has shown it has a strong local economy because of increased overseas and interstate migration. Western Australia provides almost one fifth of Australia’s Gross Domestic Product (GDP), equal to a Gross State Product (GSP) of $445.3 billion in 2022-23. Unemployment levels are down, sitting at 3.8%, as the State currently has its highest levels of full-time employment, which then flows onto the property markets.
The recently-released Australian Bureau of Statistics (ABS) figures show the Perth property investment market has hit a new high, with property investment lending in Western Australia topping $901 million during November 2023 – the highest monthly figure since December 2014. Compared to Sydney and Melbourne, the prices of houses and units in Perth are more affordable for both home owners and investors.
Property supply has been tight, which has caused property prices to rise and market experts to forecast 2024 prices to soar up to 10% over the year. With more people employed, families have more disposable income, and more people can access financing to buy property, which drives up demand for housing and property prices.
Adding fuel to the fire, challenges in Perth’s construction sector means that supply levels are down. Throughout 2023, dwelling approvals and completions were at record low levels, resulting in demand outstripping the housing supply levels.
The rental market is becoming increasingly competitive, driving up rental prices meaning higher yields for investors. Unfortunately for tenants, REIWA figures showed that housing rents saw a 19.8% increase over the 12 months to September 2023, with no signs of any decreases on the horizon in 2024.
