source : the age
Perth is on track to become the second most expensive capital city in Australia to buy a property, with the latest figures showing the median dwelling price now sits at just over $1 million.
Experts have warned such rapid growth – 7.3 per cent in the past quarter alone compared to the national average of 2.1 per cent – is unsustainable.
While price growth in other cities like Melbourne and Sydney is retreating in the face of higher interest rates, according to Cotality’s new report, Perth’s property market is surging forward on the back of a fast-growing population.
If the trend continues, Perth is on track to overtake Brisbane ($1.1 million), and become the second most expensive city in the nation to buy a house, after Sydney ($1.29 million).
Cotality research director Tim Lawless said the pace of growth was unsustainable, with Perth property prices having nearly doubled in the past five years, or by 91 per cent.
“In dollar terms, the 7.3 per cent rise in Perth home values over the quarter has added approximately $69,000 to the median dwelling value,” he said.
“Clearly this pace of growth is unsustainable, but continues to be supported by low supply, with advertised stock levels tracking about 40 per cent below the five-year average for this time of the year.”
Similar to the strength in Perth, regional WA also stands out with the strongest capital gains in the country
Values are up 2.2 per cent in March to be 6.2 per cent higher over the quarter.
“Bunbury is leading the pace of gains, with values jumping 8.4 per cent through the March quarter to be 22.2 per cent higher over the past 12 months,” Lawless said.
Perth is also sitting at the second-lowest vacancy rate in the country, only slightly ahead of Adelaide.
That lack of supply has meant rental prices have increased by 7.1 per cent annually for units and 6.7 per cent for houses.
New figures from the Australian Bureau of Statistics show Perth’s population increased by 58,100 people, or 2.4 per cent in the 2024-25 year, the highest growth rate of any Australian capital city.
The areas with the highest growth rates were Alkimos-Eglinton, Brabham-Henley Brook, and Baldivis north.
The city gained 37,289 people from net overseas migration, 8,211 from net interstate migration, and 12,588 from natural increase (births and deaths).
Perth, along with Brisbane, were the only cities to also experience net interstate migration gains, with Sydney and Melbourne suffering the biggest losses.
Those bigger capitals have experienced a subtle decline in dwelling price due to falling auction clearance rates and a pickup in advertised supply, “providing buyers with more choice and less urgency at the negotiation table,” according to Lawless.
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Holly Thompson is a journalist with WAtoday, specialising in education and the environment.Connect via X or email.
