Perth home price gains lead the nation – so what can a lazy $750,000 buy you?
Perth home values increased a further 2 per cent in June, taking growth to 24 per cent across the year.
That is the equivalent of a $15,000 monthly increase to the median dwelling value in the west or $144,000 across the year, with the median home value now standing at a record $757,399.
CoreLogic’s research director Tim Lawless said the national index had found a groove, rising between 0.5 per cent to 0.8 per cent month on month since February off the back of tight supply levels.
Perth house prices have continued to track upwards.
“The persistent growth comes despite an array of downside risks including high rates, cost of living pressures, affordability challenges and tight credit policy,” he said.
“Beneath the national headline numbers the market is running at different speeds, but most regions are trending higher in value, Melbourne and regional Victoria were the exceptions, with values down over the month.
“Strong conditions have remained a feature of the mid-sized capitals, especially Perth where values surged.”
Regional markets have shown a similar trend to the capitals, with regional WA leading the pace of capital gains with a 1.5 per cent rise in June and 16.6 per cent increase over the financial year.
The growth trends are reflected in advertised stock levels, with the strongest markets continuing to show a severe shortage of homes available for sale.
Over the four weeks ending June, the number of homes advertised for sale in Perth were 23 per cent lower than at same time last year and 47 per cent lower than the previous five-year average.
Demand side factors have also been influential, especially with interstate migration rates tracking well above average in WA.
The largest jump in annual sales relative to the historic five-year average has been in Perth, where the number of homes sold last year was 29 per cent above average levels.
Herron Todd White director Chris Hinchliffe said what a lazy $750,000 could get you in the current market around WA had changed markedly from a year ago.
“As the real estate landscape continues its dynamic evolution, it’s crucial for buyers to stay informed,” he said.
“What $750,000 could have secured you 12 months prior probably looks quite different today.”
The established inner northern suburb of Dianella was developed in the 1960s, and has a median house price in of around $735,000.
This property at 471 Grand Promenade on an 807 square metre block with a circa 1963 house features three bedrooms and one bathroom with original features. It sold in March for $730,000.
Hinchliffe said valuers had reported a significant upward trend in the coastal suburb of Alkimos with only five sales recorded in the $750,000 range from January to May last year.
He said Gosnells had also been receiving significant interest of late as investors cottoned on to its potential.
“Gosnells has seen a 24 per cent increase in median price in the past 12 months, reaching $465,000, with the highest number of sales at 606 transactions during the year, the highest among its neighbours,” he said.
“Comparatively, Kelmscott’s median price surged by 30.4 per cent to $484,000 across 354 transactions, while Huntingdale saw a 12.1 per cent increase to $560,000 from 129 transactions.
“Maddington experienced a 19.4 per cent rise to $478,000 over 306 transactions and Thornlie had an 18 per cent boost to $566,000 from 412 transactions.”
Ray White Group head of research Nerida Conisbee said WA had surpassed national averages with Perth now Australia’s fifth most expensive housing market.
“Looking forward, recent inflation data has reignited discussions about potential interest rate hikes, which could impact property listings,” she said.
“The ongoing imbalance between housing supply and demand continues to drive price increases, while affordability concerns grow amid persistent inflationary pressures.”
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