Independent industry forecaster Oxford Economics Australia’s Residential Property Prospects report,released Monday,predicted prices in the west would increase by 30 per cent to 2027.
Homebuyers can expect to pay more if they want to buy a property in Perth.Ross Swanborough
Senior economist and report author Maree Kilroy said Perth would remain the star performer regarding house price growth over the same period.
“After showing signs of softening in Q4,both Sydney and Melbourne have steadied,evident in an uplift in auction clearance rates – despite Sydney having arguably hit the peak of unaffordability,” she said.
“Adelaide and Brisbane have seen a continuation of late 2023 momentum,while Perth has sprinted ahead.
“While we expect national price momentum to slow in the second half of this year,it will accelerate again in 2025,with units set to outperform houses over the forecast period.”
Perth is Australia’s top performing capital city,with the median house price increasing 14.2 per cent in 2023.
Total listings are down by more than 23 per cent over the year to February 2024,with demand outstripping supply.
“The Perth boom looks firmly entrenched,” said Kilroy.
“With a forecast upturn in resource investment and government capex,the state economic outlook is bright.”
Population growth is running above 3 per cent per annum,with migration flows both interstate and overseas being pulled to Perth by a strong labour market and relatively good housing affordability,setting a solid base for continued double-digit price growth near term.
The median house price is forecast to lift 12.9 per cent in 2024,once again surpassing Adelaide.
“Risk is firmly to the upside with it noted that the Perth property market has shown a propensity for significant upswings in price cycles that dwarf other markets,” Kilroy said.
The combined capital city all-dwelling median price increase 1.5 per cent quarter on quarter to $946,000 in December.
This gain was anchored by Perth,Adelaide,and Brisbane,masking the loss in momentum of Melbourne and Sydney.
Houses ended the year up 7.6 per cent,while units gained 5.7 per cent.
Anticipated interest rate cuts from late 2024,overlaid by a sustained housing shortage are set to accelerate price growth in 2025.
According to data released by the Real Estate Institute of WA,
Institute chief executive Cath Hart said the ongoing strong demand for homes continued to put upward pressure on prices.
“WA’s population continues to increase at a near record rates – up 3.3 per cent to over 2.9 million in the year to September 2023,dwelling completions are well below what’s needed to house those additional households and as a result people are driven to the established homes market in order to put a roof over their heads,” she said.
“This creates strong competition for homes,which in turn pushes up prices. We’ve seen house prices increase 12.7 per cent year-on-year,while unit prices are up 5 per cent.”
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