Perth property frenzy eases as house prices dip below peak

Changing conditions in Perth’s turbulent property market has seen the pace of price gains slow noticeably with adjusted values now ever so slightly below peak levels recorded in October last year.

According to the latest data from CoreLogic, Perth home values (both houses and units) rose a modest 0.2 per cent last month to hit a median $806,205.

Perth’s property frenzy is showing signs of easing.

Research director Tim Lawless said Perth home values had led the five-year upswing among the capitals, rising 75.4 per cent since March 2020, and low supply could support further value growth.

“Although values are still increasing, the pace of gains has slowed noticeably, especially in Perth, where downward revisions over recent months have put values slightly below peak levels (-0.05 per cent) from October last year,” he said.

“Even though population growth is easing, the cumulative undersupply of housing will take some time to address.

“Housing construction costs are still rising from an already high base, creating ongoing feasibility challenges for builders and developers and the competition for trades with the infrastructure sector is likely to persist for several years at least.”

REIWA president Suzanne Brown said changing market conditions had seen the number of properties advertised for sale in Perth increase to 5082 in March, 4.8 per cent higher than at the end of February and 41.5 per cent higher than a year ago.

“Population growth has been slowing … from the peak of 3.4 per cent in the year to September 2023 to 2.5 per cent in the year to September 2024,” she said.

“There is still strong demand for property, but … frenzied conditions of early 2024, when properties were selling in a median of nine days and there were less than 3600 listings on the market, have eased.”

According to REIWA Perth’s median house sale price rose 1.2 per cent in March to $766,500 (slightly lower than the CoreLogic calculation, which includes units, whereas REIWA’s is houses only).

This was 20 per cent higher than March 2024.

The median unit sale price also rose, increasing 1.2 per cent over the month, and 20 per cent year-on-year to $516,000.

Brown said price rises were not expected to end in the short term.

The suburbs that saw the highest median house price growth in March were Fremantle (up 3.5 per cent to $1.345 million), Yokine (up 3.3 per cent to $1.017 million), Kensington (up 2.9 per cent to $1.325 million), Hillarys (up 2.5 per cent to $1.396 million) and Mandurah (up 2.4 per cent to $545,000).

Kardinya, Ocean Reef, Aveley, Bicton and Hamilton Hill were also among the top performers, recording growth of 2.2 per cent or more over the month.

Houses in Perth sold in a median 13 days in March, unchanged from February but four days slower than a year ago.

The fastest-selling suburbs for houses in March were Willagee and Hammond Park (six days); Craigie, Orelia, Palmyra and Parmelia (seven days); and Lakelands, South Yunderup, Armadale and Cooloongup (eight days).

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