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WA Property Market Update March 2024

As Western Australians navigate a tricky economic and property market landscape through the end of the March quarter and into the remainder of 2024, the latest data reveals interesting trends in the WA housing values and rental markets. Despite challenges like interest rate hikes, worsening affordability, and the rising cost of living, certain factors like net migration and supply shortages have notably impacted house values and rental prices. Let’s have a look at the state of the Western Australian property market, and find some key insights into house values, sales, and the rental market.

WA Property Market Update March 2024 (House Values & Sales)

Over the past year, the Western Australian property market has witnessed remarkable growth. According to CoreLogic’s Home Value Index, the national median dwelling value has soared by 8.9%, marking an all-time high. Perth, in particular, has experienced widespread value uplift across houses and units, with an impressive 93.7% of markets recording significant capital gains. Notably, many suburbs within Perth have seen double-digit value growth, with Waikiki showcasing a staggering 42.1% annual rise in unit values. Despite a minor decline in certain inner-city areas (e.g. East Perth), the overall trend remains positive, propelled by strong net migration, limited housing supply, and low housing prices relative to the rest of the country.

The Real Estate Institute of WA (REIWA) reinforces this positive outlook, highlighting a continuous upward trajectory in property values across houses, units, and land. The median sale price for houses now stands at $611,000. Although there’s been a slight increase in listings, the median selling days have remained stable, indicating a resilient market.

WA Property Market Update March 2024 (Rental Market)

The rental market in Western Australia mirrors the strength seen in property sales and values. Perth has emerged as the best-performing capital in terms of annual rental growth, with all house and unit markets analysed witnessing increases. A significant portion of these markets saw rent rises of 10% or more over the year, pushing the median weekly rental prices to $640 for houses and $580 for units. This growth is a clear indicator of the high demand for rental properties in the region, exacerbated by the limited supply and bolstered by the same factors driving the sales market: strong net migration and constrained housing stock.

Interest Rates and Economic Factors

The Reserve Bank of Australia (RBA) has maintained interest rates at 4.35%, amid moderating but still high inflation. This decision reflects the complex economic landscape, marked by slowing growth and weak household consumption against a backdrop of high inflation (although now lower than last year) and high interest rates. Some potential good news is that most Bank economists are now forecasting the cash rate to drop by either July or sometime later in the 2024 year.

Looking Ahead

Despite the hurdles of rising interest rates, affordability challenges, and the cost of living, the Western Australian property market has demonstrated remarkable resilience and growth in early 2024. Factors like strong net migration and limited housing supply have significantly influenced both house values and rental prices. The economic outlook remains cautiously optimistic, suggesting that the property market may continue to navigate through the prevailing uncertainty. For Western Australians, staying informed about these trends is crucial for making well-informed decisions in this dynamic environment.

Our Finance team are on hand to help you ensure that no matter the state of the market, you’re still getting the best possible deal on your home loan. Contact us today for a no-obligation loan health check on 08 9325 2411 (Perth), 08 9301 2200 (Joondalup), or via our website.

Data From: CoreLogic “Values rose across almost 90% of house and unit markets over the year” 22 Mar 2024

REIWA Market Insights

RBA Media Release 19 March 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.