Happy New Year, Red Fox Property Group Enthusiasts!
As we step into 2024 (can you believe we’re past the midpoint of January already?!), let’s take a jaunty stroll down the memory lane of 2023 and peek over the horizon to what this year holds for the Perth property market.
2023: A Year of Records and Resilience
2023 was nothing short of a rollercoaster ride in Perth’s property landscape. Despite the spectre of rising interest rates, the market showed the persistence of a seasoned hipster carefully tending their brisket on their Kamado Joe.
House Price Surge: Perth’s median house price hit a record $590,000, leaping by 8.3% over the year, according to REIWA. Or 15.2% to a median value of $660,754, according to CoreLogic. Whichever stat you choose, it’s like the market took a massive slug of Red Bull to finally burst past its previous low and reach heights not seen since 2014. Units, which had been lagging houses in performance for most of the year, also started to flex their muscles towards the year-end, to the relief of owners and investors.
Speedy Sales: Houses flew off the shelves faster than Sugar & Nice Cinni Scrolls, with the median time to sell dropping to a zippy eight days. If you blinked, you missed it.
Inventory Limbo: The number of properties for sale hit an all-time low of 3,648 in December. While we expect that to number to grow now we’re into 2024, low stock levels will likely persist for some time yet. People are hesitant to sell because they can’t find anything to buy.
The Forces Behind the Frenzy
Population Growth vs. New Builds: We welcomed around 35,000 new households to Perth but only built about 14,000 new homes. It’s basic math – there’s not enough supply.
Economic Gusto: WA’s economy flexed its muscles like a bodybuilder, with strong employment and a booming mining sector. This economic health has been a potion for market confidence, and one of the reasons interest rate rises have had little or no impact on demand.
2024: Gazing into the Crystal Ball
Price Predictions: REIWA tips a 10% jump in house prices this year. Units are expected to dust off their lull and strut upwards on the price ramp too. Locally, we’re seeing strong signs of price recovery in the inner north multi-residential market – it’s been a long time coming.
Rent Rollercoaster: Rents hit dizzying heights in 2023, with the median dwelling rent reaching $600 per week. This trend is set to continue, though maybe not at the sprinter’s pace of last year. REIWA doesn’t believe there will be any relief for renters in 2024.
The Multispeed Australian Market
While Perth soared, other capitals like Melbourne and Sydney showed signs of steadying or slight declines. It shows what we’ve always said: The Australian property market is not homogeneous. Perth neither leads nor follows the other states – we dance to our own drumbeat. And in the context of the rest of Australia, Perth is still affordable. Only Darwin & Hobart (the latter market having fallen 0.8% last year) are cheaper for median dwelling values.
As we embark on 2024, Perth’s property market looks set to continue its spirited journey. The blend of WA’s economic strength, population growth, and limited supply suggests that the housing and rental markets will remain as dynamic and lively as a Perth Fringe event.
For those navigating this market, whether buying, selling, or renting, it’s like an all-night dance party – fast-paced, unrelenting and keeping you on your toes. The trick is ensuring you stay on the floor so you don’t miss the bangers.
To our professional, cultured, and savvy Red Fox community (you know it!): Stay tuned, stay informed, and let’s make 2024 a year of smart yet heart-driven property decisions!