Aerial urban suburban cityscape landscape view in Perth Western Australia
URGENT UPDATE: Perth property values are skyrocketing, increasing by a staggering $5,000 a week, according to new data from Cotality released just yesterday. This unprecedented surge marks a dramatic 2.4% growth for the month of November 2023, solidifying Perth’s position as the city with the highest property value growth in Australia.
The latest home value index reveals that the median dwelling price in Perth has now reached $914,229. This puts it just behind Sydney’s median of $1.269 million and Brisbane’s $1.015 million. While other major cities like Sydney, Melbourne, and Brisbane saw modest increases of 0.5%, 0.3%, and 1.9% respectively, Perth’s rapid rise has raised urgent questions about housing affordability.
Cotality’s research director, Tim Lawless, emphasized the alarming rate of price increases, stating, “In fact, the last three months we’ve seen Perth values rising more than 2% month-by-month, much more than any other capital city.” He warned that this growth is “not sustainable,” as it places immense pressure on affordability, particularly for those without home ownership.
The crisis is felt most intensely at the lower end of the market, where prices have surged by an astonishing 8% over the past three months. In contrast, the upper quartile increased by just 6.8%. Lawless noted the disparity, stating, “If you don’t have a stake in the ground, it’s going to become a lot harder to access housing.”
Over the past five years, Perth house prices have skyrocketed by an incredible 87%, while incomes have only increased by 15%. This disparity is creating a “rock and hard place” scenario for lower-income residents, as rental prices are also rising sharply.
The sharp increase in values is attributed to “extraordinarily low supply levels,” according to Lawless. Current listing numbers in Perth are approximately 44% below average for this time of year and 28% lower than a year ago. New listings continue to trail behind, creating a perfect storm of demand against dwindling supply.
Despite the current surge, some experts predict a potential easing of growth trends as we head into the New Year. Factors such as affordability, rising interest rates, and inflation are expected to curb the pace of price increases. Lawless noted the Australian Prudential Regulation Authority (APRA) is closely monitoring credit flows, with the potential for tighter lending conditions ahead.
As the housing crisis deepens, Perth residents and prospective buyers are left grappling with the realities of a rapidly changing market. The implications of these soaring prices will continue to unfold in the coming weeks and months, making it crucial for stakeholders to stay informed.
For those in the market, the urgency is palpable. The time to act is now, as these developments are reshaping the future of housing in Perth. Stay tuned for ongoing updates as this situation evolves.
