Buy now, experts warn as they predict Perth home median to smash $850k

Sarah Brookes, March 22, 2024 — 2.00am

 

If current price growth trends continue, the median Perth home price could top $850,000 by early to mid-2025 as strong migration and chronic stock shortages continue.

CoreLogic figures for February 2024 showed the median dwelling (both houses and units) in Perth surged 18.3 per cent to $687,004.

“This compared to $561,740 for February 2023 which represented a growth of $125,254 over the year or an average weekly growth rate of $2400,” he said.

“Property prices in Perth have been rising rapidly because of an undersupply of housing caused by rising building costs and a surge in interstate and overseas migration.

“The booming WA economy is continuing to attract thousands of people from outside the state that need houses when they come here.”

The shortfall in builds is likely to continue for some time, with the latest Australian Bureau of Statistics figures showing there were 1296 home building approvals in Western Australia in December 2023, less than half the number given in February 2021 when approvals peaked at 2692.

Construction completion times due to skilled labour shortages would also continue to place a major drag on Perth supply while eastern states investors would put further upward pressure on prices over the coming year.

WA buyers might find delaying a purchase a costly decision.

“The past year has seen very strong capital growth in lower-priced suburbs in Perth such as Armadale and Rockingham,” he said.

“This strong activity in the lower-priced suburbs will start to have a ripple impact on higher-priced suburbs during the coming year as more people in the lower-priced brackets are in a better position to upgrade.”

“The region is also home to billions of dollars of new infrastructure and is forecast to create some 10,000 jobs over the next three decades,” he said.

CoreLogic’s daily Home Value Index is pointing towards further growth in housing values, with each of the five largest capitals recording a rise in values through the month to date.

CoreLogic research director Tim Lawless said Tuesday’s Reserve Bank of Australia decision to leave interest rates on hold in March came as no surprise but most economists agreed the next move on rates would be down, which would drive property prices still higher.

 

 

 

 

 

 

https://www.watoday.com.au/property/news/buy-now-experts-warn-as-they-predict-perth-home-median-to-smash-850k-20240319-p5fdnc.html