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Perth powers ahead as Australian housing values gain momentum

March 8, 2024

In February, there was a widespread increase in housing values, as indicated by CoreLogic’s national Home Value Index (HVI), which rose by 0.6%, with Perth standing out with growth of 1.8%. 

The national growth rate marked a notable acceleration of 20 basis points from January’s 0.4% growth, representing the most substantial monthly gain since October of the previous year. 

Angus Raine, Executive Chairman at Raine & Horne, attributed this renewed momentum to increased buyer demand and the Reserve Bank of Australia’s decision to keep rates unchanged in December and February.

According to Tim Lawless, CoreLogic’s research director, the continual increase in housing values results from an enduring imbalance between supply and demand, with variations in magnitude observed across different cities and regions.

The latest February data from Raine & Horne underscores this trend with a robust 21% increase in attendance at Open for Inspections (OFI) month on month. Simultaneously, property listings are plateauing, indicating that the odds are moving in favour of homeowners contemplating a sale this autumn.

 Perth continues to shine with a substantially higher growth rate than other regions, up 1.8% over the month. Adelaide (+1.1%), Brisbane (+0.9%) and the regional areas of SA (+1.1%), WA and Queensland (both +1.0%) also show a consistently high rate of capital growth month-to-month.

“These regions are generally benefiting from a combination of comparatively lower housing prices and positive demographic factors that continue to support housing demand,” Tim Lawless said.

Peter Vetten, Principal & Licensee at Raine & Horne Mandurah, highlighted the shortage of homes for sale, emphasising that the situation is exacerbated by a significant number of properties being sold off-market. “In the Perth metro region, there’s normally around 13,000 to 14,000 listings, and at the moment we’re under 4,000,” he said. 

“We’ve got a serious supply and demand situation that has contributed to Perth’s prices climbing by almost 17% over the last year.”

In Perth’s southwest, Paul Curran, Licensee/Director of Raine & Horne Rockingham, recently sold an off-market three-bedroom, two-bathroom Rockingham home within 12 hours to an eastern coast-based buyer. According to Paul, investors are snapping up approximately 60% of residential properties in his region – mostly sight unseen. 

“Generally, interstate investors might represent 25-30% of our buyers. If you have a budget of under $500,000 and are looking for a gross yield of 5%, it’s hard to ignore suburbs to the southwest of Perth, such as those in the Rockingham LGA.” Paul added. 

If you're contemplating selling your property this autumn, reach out to your local Raine & Horne office today for an obligation free appraisal.