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WA Property Market Update December 2024 + Year in Review

As we saw off December, we reflected on the WA property market in 2024 as a testament to resilience and adaptability. With population growth driving demand and a stable interest rate environment, the year delivered significant developments across residential and industrial sectors. This year’s market trends not only reflect the unique economic conditions of WA but also highlight opportunities for long-term investment strategies. Let’s dive into the data that underpinned WA’s property market performance in 2024.

WA Residential Property Market Update December 2024 + Year in Review

Key Trends in 2024

Western Australia’s residential property market showcased extraordinary growth in 2024, with a staggering 23% increase in median house prices. Perth’s median house price climbed to $741,000 according to REIWA. CoreLogic puts Perth’s median price north of $800,000 – if that’s the case, Perth has surpassed Melbourne in terms of median house price. A primary driver of this growth was WA’s population surge, with a 3.1% increase fuelled by overseas and interstate migration, the highest in Australia. Despite stable RBA cash rates at 4.35%, the undersupplied housing market faced immense pressure, with demand consistently outpacing supply.

Construction cost stabilisation earlier in the year provided a window for affordable new builds, but rising land prices later challenged accessibility for many buyers. Suburbs traditionally considered affordable experienced accelerated growth as local buyers competed in a tight market. These dynamics reflect WA’s unique economic conditions and the resilience of its housing sector.

Rental Market Trends

Rental markets were a focal point throughout 2024. While the median rent stabilised at $650 per week from March onwards, vacancy rates remained below historical averages. Reports varied, with REIWA citing 1.9%, CoreLogic at 1.2%, and Proptrack reporting just 0.97%. Despite an uptick in vacancy rates, rental properties remained scarce, maintaining upward pressure on prices. Investor activity saw a decline in the latter half of the year as rental yields struggled to match the rise in property values. These conditions created a complex environment for both renters and investors, with sustained demand signalling long-term market challenges.

WA Industrial Property Market Update December 2024 + Year in Review

Leasing and Rental Growth

The industrial property market in WA continued its robust performance throughout 2024, with leasing demand remaining unrelenting. Vacancy rates plummeted to historic lows, underscoring the scarcity of available properties. The sustained demand was particularly pronounced for newly built facilities, highlighting the growing appetite for quality industrial spaces.

Supply and Development

A limited supply of development-ready land constrained new projects, pushing developers to explore secondary locations like Neerabup, Hope Valley, and Forrestdale. These areas, once overlooked, saw a rise in large-scale speculative developments, though some properties remain vacant due to the narrow pool of eligible tenants. Mid-sized lots (2,500 to 5,000 square metres) saw significant demand from both owner-occupiers and developers, leading to considerable growth in sale prices.

Investment Trends

Investor interest in WA’s industrial sector remained strong, particularly from eastern states buyers. Securely leased, high-quality assets continued to deliver sub-6% yields in select cases, bolstered by favourable lease terms and depreciation benefits. Despite uncertainty surrounding interest rates, activity in the sub-$5 million market for owner-occupiers persisted, reflecting confidence in the sector’s resilience.

Conclusion

The WA property market in 2024 has demonstrated remarkable resilience across both residential and industrial sectors. From soaring house prices driven by population growth to unprecedented demand for industrial facilities, the market continues to offer opportunities for savvy investors and stakeholders. As we move into 2025, the lessons of 2024 highlight the importance of long-term planning in navigating market shifts.

For expert guidance and support from experts in the residential, commercial, and business finance sectors, contact McKinley Plowman’s Finance team at (08) 9301 2200 or (08) 9325 2411, or visit our website’s contact page.

Read More:

• Month in Review – Herron Todd White
• Total Value of Dwellings, September Quarter 2024 | Australian Bureau of Statistics
• REIWA – Perth Property Market Data

written by:

Paul Moran

Paul has over 35 years of experience in finding financial solutions for homebuyers, investors and business owners.
A licensed broker and member of the Mortgage & Finance Association of Australia (MFAA), Paul’s extensive experience includes 20 years with a major bank, seven of which were as commercial banking manager.
Paul delivers a holistic financial solutions to achieve the best possible outcome for a client’s personal or commercial lending needs. Paul also provides a comprehensive financial consultancy to business owners on commercial, equipment and invoice finance.