Perth house prices gain nearly $500 a day to smash fresh record

Perth house prices have surpassed $800,000 for the first time as the capital continues its run as the top performer nationwide.

House prices rose $52,000, or 6.6 per cent, over the June quarter to a record high of $852,240.

Perth’s affordable south-eastern suburbs recorded the lion’s share of the largest gains over the year, led by Armadale (up 38.5 per cent to $440,000), then Camillo (up 38 per cent to $490,000) with Seville Grove and Kelmscott also rising by 35 per cent.

North Coogee recorded the biggest price drop, with the median price of a house falling by 13.3 per cent.

Domain chief of research and economics Nicola Powell said the pace of quarterly growth was nearly 1.5 times higher than the previous quarter, and double that of the same time the year prior.

“This acceleration has pushed annual gains to a 17-year high of 23.8 per cent,” she said.

“House prices have risen by $448 per day over the past year, marking the steepest rise in the city’s history.”

Perth unit prices rose for the fifth consecutive quarter, growing by almost $34,000 (or 7.8 per cent) over the June quarter to a record high of $466,720.

Powell said the previous three quarters of strong gains had unit prices accelerating substantially, aided by the city’s fastest annual gain in 17 years at more than 25 per cent.

“Perth has the strongest unit market among the capitals,” she said.

“In fact, unit prices have outperformed houses in Perth for the past two quarters, reversing a prior trend.”

Melbourne, Brisbane and Canberra joined Perth in recording an acceleration in the pace of annual and quarterly house price growth compared to the previous quarter.

In Sydney and Adelaide, the pace of quarterly gains roughly halved compared to the previous quarter, while Hobart declined and Darwin flatlined.

Strategic Property Group managing director Trent Fleskens said Kallaroo was an interesting standout after recording gains of 38.2 per cent to reach a median house price of $1.17 million.

I don’t expect anything other than more of the same for a good few more years, which is hard to believe until you see the harsh realities on the ground in the property development industry, which is trying but unable to solve this issue.

Trent Fleskens

“Mainly because its price point isn’t as accessible as the usual suspects over the last couple of years,” he said.

“However, when you compare it to its surrounding suburbs, it’s the most affordable of the northern beaches area, which includes Iluka, Burns Beach, Hillarys, and Sorrento as alternatives.

“The locals have flocked there simply because it hadn’t popped yet like the others.”

The housing market has continued to defy all expectations, growing despite stretched affordability from cost-of-living pressures, high-interest rates and ongoing challenges in the construction industry.

Fleskens said the gap between supply and demand was not improving and tipped the median price of a house in Perth could crack $1 million.

“I don’t expect anything other than more of the same for a good few more years, which is hard to believe until you see the harsh realities on the ground in the property development industry, which is trying but unable to solve this issue,” he said.

ABS data showed the state recorded the largest population growth in 2023, up 3.3 per cent.

Perth has a projected annual growth rate of 1.4 per cent over the next decade, according to the Centre for Population.

Adding to the situation is a lack of established homes being listed for sale, in June 2024, total listings were down 32 per cent across Perth, according to SQM Research.

Perth-based buyers agent Peter Gavalas agreed that with Perth’s housing supply still lagging population growth, price growth was unlikely to flatten in the near future.

“We still have a significant supply deficit in Perth compared to population growth,” he said.

“With fewer homes available for purchase, and little in the way of new builds, it’s no wonder there has been such upward pressure on property prices over the past year.”

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