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WA Property Market Update July 2024

Welcome to the July 2024 WA Property Market update.

As we enter the second half of the calendar year, there are a number of noteworthy economic factors influencing both the residential and retail property sectors across WA. Affordability, house values, rental prices, and the cost of retail spaces for businesses are all hot topics, and the current interest rate and inflation situation are playing a significant role in shaping the markets. Let’s take a look at the key changes and trends which defined the first half of 2024 in the WA Property Market.

WA Residential Property Market Update July 2024

The Perth metro area has seen a remarkable increase in median house prices, rising by $95,000 over the past year to reach $650,000. Lower-end market surges led to a $50,000 increase between January and June alone. Rental prices have also trended upwards, with more suburbs now boasting median house prices above $1 million. Listings have dropped significantly, with only 2781 properties on the market in June 2024, down from 3959 in June 2023. The median selling period has also reduced from 12 to eight days, showcasing the strong demand in the market.

In Scarborough, the median house price now exceeds $1 million. For example, a property on Deanmore Road sold for $1.15 million in March, reflecting a 43% increase since its previous sale in August 2022. The southern suburb of Baldivis has also seen significant growth, with median house prices rising from $485,000 to $600,000 over the past year. Similarly, the apartment market in East Perth has rebounded, with a 31% increase in transactions for properties over $1 million.

Regional areas have experienced varied trends. In Broome, demand has picked up again, especially for properties within the $500,000 to $700,000 range. Rental prices have increased by 16% for houses and 55% for units. In Port Hedland, rental growth has been strong, with median weekly rents reaching $1400. Meanwhile, Karratha has seen a surge in demand due to the mining and energy industries, pushing house and rental prices up. These key regional centres in the state’s northwest are shaping up to be an investor’s paradise with such strong rental yield potential, far outperforming the market in Perth (which itself already has very attractive yields).

The south-west region, including Bunbury and Busselton, continues to experience high demand, driving up prices across all segments. In Albany, demand remains strong, though buyers are becoming more contemplative. Esperance has seen continued growth, particularly in the $300,000 to $500,000 market. Overall, the Western Australian residential property market remains robust, with limited supply contributing to upward pressure on prices – as it has done for some time now.

WA Retail Property Market Update July 2024

The retail sector in Western Australia has faced challenges due to changing consumer spending habits and economic pressures. Despite this, new retail construction has been prevalent in Perth’s peripheral suburbs and regional centres. Projects typically include neighbourhood shopping centres anchored by major supermarket chains. Demand for modern, leased investment properties remains strong, driven by eastern states-based buyers, despite a wavering interest rate outlook.

Major refurbishment projects, such as the $720 million expansion of Westfield Booragoon and the ongoing upgrades at Claremont Quarter, reflect confidence in areas with resilient socio-economic demographics. These projects aim to create village centres that offer shopping, dining, entertainment, and socialisation in one location. Smaller-scale refurbishments on traditional high streets also continue to attract customers, benefiting from the work-from-home movement and increased density housing.

The adaptive reuse of historical buildings in Perth City has preserved architectural heritage while creating unique retail spaces. This trend aligns with sustainability initiatives and caters to the evolving needs of customers. Non-traditional retailers, such as health-care services, are becoming more common, while conventional retailers diversify their offerings to remain competitive.

Conclusion

The Western Australian property market has demonstrated resilience and growth in the first half of 2024. The residential market, particularly in Perth and regional areas, has seen significant price increases and strong demand, driven by limited supply and economic factors. The retail sector, despite challenges, continues to evolve with new construction and refurbishment projects, adapting to changing consumer needs. As we move into the second half of the year, it will be interesting to see how these trends develop and impact the broader property market in Western Australia.

As home values soar, many West Australian homeowners find themselves in a strong equity position with their home loan, prompting a refinance. That means doors are opening up to unlock cash to perform renovations or other significant purchases, or even fund a deposit for an investment property. If you’re looking to make the most of your equity position, contact the Finance team at McKinley Plowman today on 08 9301 2200 (Joondalup), 08 9325 2411 (Perth), or via our website.

Data from: HTW Month in Review July 2024

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.