Perth has recorded the strongest annual house price growth of any capital city in the nation, with the median house price lifting 8.6 per cent according to Ray White’s latest report.
The city’s average house price hit $660,790 in the month of September, recording a year-on-year jump exceeding the 6.1 per cent national average – the strongest market growth since July 2022.
Ray White Group chief economist Nerida Conisbee told WAtoday she believed Perth’s price growth would continue.Credit: Ray White Group.
Adelaide followed closely behind, with its median house price climbing 6.7 per cent to $723,536 over the past year, while Sydney and Brisbane recorded 6.6 per cent and 6.5 per cent respectively.
Sydney’s average house price is more than double that in Perth, climbing to $1.48 million in September.
Meanwhile, Brisbane and Adelaide recorded the strongest increases in the price of units, experiencing an increase of 6.8 per cent to $536, 583 and 6.9 per cent to $467, 740 respectively.
The median unit price in Perth is sitting at $445,555, a 5.6 per cent increase on this time last year but a 0.5 per cent drop on last month.
Despite recording the most significant growth month-on-month, Melbourne’s median unit prices rose just 2.1 per cent.
But the average unit in the country’s second-most populous city will still set you back more than $629,000, while the median cost of a unit in Sydney hit $840,927.
Capital city house price growth over the month of September, according to Ray White’s data.Credit: Ray White Group.
Despite Perth’s house prices dropping 0.7 per cent in the past month, Ray White Group chief economist Nerida Conisbee told WAtoday she believed Perth’s price growth would continue, buoyed by the strength of the state’s economy.
A decrease in the number of residential building approvals issued in WA coupled with a major housing shortfall is also expected to continue pushing house prices up over time.
“If you look at the underlying drivers of what’s really pushing prices, it’s population growth, and it’s rising wealth in WA, so the slight decline does seem like more of a one-off rather than something that’s going to continue,” she said.
“Perth’s house prices will continue to grow, with the biggest factor being that the WA economy is still doing really, really well and there’s that longer-term transition from iron ore to green energy minerals which has the potential to change WA as iron ore did.
“We’re also seeing international migration bounce back and then of course, another major factor is interest rates, which have probably peaked, and given that’s the case it is leading to a lot more buying activity because there is more certainty.”
Conisbee said Perth’s affordability compared to other capital cities made it an attractive destination for those wanting to get into the property market, particularly young people.
“If you’re a young person in Sydney, for example, you are really priced out of the market and for the price of a very small apartment, you can buy a decent sized home in Perth at a good price,” she said.
“That makes it very attractive to migrate to, but it also does attract a lot of investor interest because we know that investors tend to focus on properties below the $750,000 mark.
“It’s hard to buy properties in the capital cities now at that price point, but places like Perth do have those options available.”
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