The real estate market in Perth is experiencing a surge in prices, driven by strong migration, low stock levels, and a crippled construction industry. Real estate expert, McQuillan, predicts that the median home price in Perth could top $850,000 by early to mid-2025 and potentially reach $1 million in the next three to four years. With high demand from east coast investors and limited supply in the market, prices are expected to continue rising.
CoreLogic’s daily home value index shows a consistent increase in property values, with values up 0.5% over the past week and 1.9% over the past four weeks. Perth currently has a median house price of $777,921, making it the third-cheapest capital city to buy a house after Darwin and Hobart. Notable increases in house prices have been recorded in suburbs like Darlington, Kallaroo, Shelley, and Armadale.
Economist Kaytlin Ezzy notes a shift in buyer demand towards units, especially in capital city markets like Perth where housing prices have become prohibitively high. With affordability becoming a growing concern and the possibility of higher interest rates looming, buyers are turning to the more affordable unit sector. CoreLogic estimates the combined value of residential real estate in Australia to be $10.6 trillion as of April.
Despite the current market trends, McQuillan anticipates a leveling out of the price reductions seen recently in the middle rung of the market. He believes that prices will stabilize as strong migration, low stock levels, and high demand from investors continue to drive the market. With population growth forecasts showing an increase over the next 18 to 24 months, the limited supply of properties coming to the market will further contribute to rising prices.
The ongoing surge in property values in Perth is a reflection of the intense demand and limited supply in the market. High migration rates, low housing stock, and a struggling construction industry are all factors driving the increase in prices. With experts predicting further price rises in the coming years, buyers are turning towards more affordable unit options as housing prices continue to soar.
Overall, the real estate market in Perth is experiencing a period of rapid growth and rising prices. With record highs in house prices and a shift towards more affordable unit options, buyers are navigating a challenging and competitive market. As demand continues to outstrip supply, experts anticipate further price increases, making it a challenging environment for buyers looking to enter the market.
