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WA Property Market Update April 2024

In April 2024, the Western Australian property market continues to grapple with affordability as a key issue, particularly within the residential and retail sectors. How can families and business owners access the right property in prime locations without breaking the bank? What are businesses up against in the retail property sector, in this world of economic fluctuations and changing consumer behaviour? Let’s have a look at the state of the WA Property Market for April 2024.

WA Residential Property Market Update April 2024

Despite high property prices, opportunities still exist for those looking to buy in prime Western Australian suburbs on a modest budget. In Perth’s metropolitan area, properties near the Swan River and within close proximity to the CBD, such as Dalkeith and Nedlands, remain highly sought after. While Dalkeith boasts properties around the $3.5 million-mark, neighbouring Nedlands offers more affordable alternatives around $2 million. These areas offer strong rental returns and are close to major universities and hospitals, making them attractive for long-term investment. Further north, City Beach and North Beach provide options for those seeking coastal lifestyles without the hefty price tag, with properties available around $1.3 million to $2.5 million. Meanwhile, suburbs like Como and Bentley provide more budget-friendly options for Perth unit buyers near Perth’s city centre, with prices ranging from $400,000 to $520,000, still granting access to excellent amenities and universities.

For those navigating Perth’s rental market, the tough times appear to be continuing. According to data from REIWA, the quarter from January to April 2024 saw a $45 per week increase in median rental prices for units, and $50 for houses. As Australians battle a cost-of-living crisis, suffice it to say this increase is less than welcome among Perth’s tenants. On a lighter note, the recent passage of rental reforms through WA parliament, with a view to taking effect from mid-2024, may offer some relief. This includes a ban on rent bidding, limits to rent increases, and updated provisions for tenants to be allowed pets in their rental. This is certainly a “watch this space” piece of news, as the rollout of the changes won’t be immediate, nor will its long-term impact.

WA Retail Property Market Update April 2024

The retail sector in Western Australia faces a complex 2024, influenced by high inflation, low unemployment, and shifting consumer spending habits. Despite these challenges, there is sustained interest in investment-grade retail properties such as neighbourhood shopping centres with strong lease covenants and long lease terms. Notable recent sales like Dianella Plaza and Whiteman Edge Village Shopping Centre reflect a continuing demand for retail spaces anchored by major supermarkets, achieving yields around 6%. Traditional high streets and suburban shopping hubs benefit from increased residential density and remote working trends, maintaining stable occupancy levels. The fast-food sector has emerged as a robust component of the retail market, attracting investors with long-term leases and perceived security of rental income.

Looking Ahead

As of April 2024, the Western Australian property market delivers a mix of challenges and opportunities. In residential real estate, affordability remains a concern, yet there are promising prospects for those willing to explore different property types and suburbs. The retail sector, while facing economic headwinds, continues to attract investment, particularly in properties with non-discretionary tenants. As Western Australians navigate this complex landscape, understanding these market dynamics is crucial for making sound investment decisions and optimising property value. The blend of caution and optimism in both sectors indicates a dynamic market environment moving forward into 2024.

Whether you’re planning on upgrading your home, downsizing, refinancing or securing a new premises for your business, the McKinley Plowman Finance Team is here to assist. If there’s a better finance deal out there for you, our brokers will help you find it. You can reach us on 08 9325 2411 (Perth), 08 9301 2200 (Joondalup), or via our website.

Data From: HTW Month in Review April 2024; REIWA Market Insights

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.