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Perth’s Median House Price Hits $740,000: A Strong Market Heading into 2025

Posted by Empire Property on 13/01/2025
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Perth Property Market Update: House Prices and Rental Trends in December 2024

As we move into the new year, Perth’s property market has continued its positive trajectory, with notable increases in both house and unit sale prices. According to recent data from REIWA, December 2024 saw Perth’s median house sale price rise to $740,000, marking a 1.7 per cent increase from November and an impressive 23.3 per cent jump compared to the same time last year. Similarly, the median unit sale price grew by 2.1 per cent month-on-month and 20 per cent year-on-year, reaching $495,000.

A Strong Seller’s Market

REIWA’s CEO, Cath Hart, pointed out that despite talk of declining prices and a shift towards buyer’s markets on the east coast, conditions in Perth still heavily favour sellers. While the rate of price growth has slowed somewhat in recent months, Hart remains optimistic, citing strong underlying fundamentals that continue to drive the market. These include Western Australia’s population growth, which saw an increase of 2.8 per cent in the year to June 2024, along with low unemployment rates and a robust economy.

“The demand for established housing remains high, and properties are still selling quickly, reflecting the strong market conditions,” Hart said.

Several suburbs experienced notable growth in house sale prices in December. Applecross led the charge with a 4.2 per cent increase, reaching a median price of $2.5 million. Other suburbs like Parkwood, City Beach, Fremantle, and Westminster also saw price increases ranging from 3 per cent to 4 per cent.

Slower Market Activity Over December

While price growth continues to be strong, the time to sell properties has increased slightly, as is typical for the festive season. In December, houses in Perth sold in a median of 15 days, which is two days slower than November and five days slower than the same month in 2023. Units also took a median of 15 days to sell, reflecting a similar trend.

Hart noted that the slowdown can be attributed to the traditional dip in market activity as people turn their attention to end-of-year holidays. The rise in new listings in recent months also provided buyers with more options, contributing to a more measured pace of decision-making.

“Despite this, properties are still selling far quicker than they did pre-COVID, when the median time to sell was over 40 days,” Hart added.

Among the fastest-selling suburbs for houses in December were Carlisle, Beeliar, and Cooloongup, where properties sold in as little as six to seven days. Other fast-moving areas included Nollamara, Palmyra, and Maddington, with homes selling in nine days or less.

Rental Market Stability Amid Strong Demand

The Perth rental market remained steady throughout December, with the median dwelling rent staying at $650 per week. This is an 8.3 per cent increase compared to the same time last year. The median rent for houses remained unchanged at $670, marking an 8.1 per cent increase from December 2023. However, unit rents rose to $650 per week, reflecting a 4.8 per cent increase month-on-month and a 14 per cent rise year-on-year.

The rental market continues to face strong demand, especially for homes that are either affordable or located in sought-after areas. This has been putting upward pressure on rental prices, as landlords adjust to market conditions. Hart highlighted the areas that saw the most significant growth in median weekly rents, including South Perth (up 10.4 per cent), Maylands (up 9.5 per cent), and Nedlands (up 6.3 per cent).

New Listings and Leasing Trends

At the close of December, the number of active listings for sale in Perth stood at 4,395—22.6 per cent lower than November but 20.5 per cent higher than the same time in 2023. While the decrease in listings from November was expected due to the holiday period, the increase from a year ago is a positive sign for buyers looking for more choices in the market.

The leasing market saw consistent activity, with properties leasing in a median of 15 days, unchanged from November and the previous year. Suburbs such as Clarkson, Subiaco, Bayswater, and Wembley recorded the fastest leasing times, with homes being snapped up in as little as nine to 10 days.

Looking Ahead to 2025

With Perth’s housing market remaining resilient and demand continuing to drive price growth, 2025 promises to be another year of opportunity for sellers and potential buyers alike. Whether you’re considering purchasing a home or investing in Perth’s property market, the fundamentals remain strong, providing a positive outlook for the year ahead.

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