December Market Summary

Despite the September 2022 quarter seeing a decline in the residential property market nationally, Perth maintained its title as the most affordable Australian capital city by median price, with home values remaining relatively stable across the period.  Indeed, “…the Perth market is holding up well in the face of interest rate rises, supported by a strong economy, low unemployment, population growth and affordable housing,” according to Cath Hart, Chief Executive Officer of the Real Estate Institute of Western Australia.

While Perth’s median house price showed a small decrease of 2.8 per cent to $530,000 during the September 2022 quarter, according to the latest REIA report it was still 3.7 per cent higher than the same time last year.  This was also the smallest decline of all Australian capital cities: 2.8 per cent as compared to Brisbane’s home value index decline of 3.3 per cent and Sydney’s decline of 5.2 per cent.  There is nothing to indicate a drastic reduction in housing prices across the greater Perth area moving forward into the new year.

Additionally, Perth is experiencing a concurrent housing and labour shortage, which is resulting in good outcomes for sellers, but competitive conditions for those wanting to buy.  As Perth’s population continues to grow, additional pressure on our already strained housing market is expected to keep the housing market stable.  “With rate rises likely to continue into the new year, we are starting to see buyers adjusting their expectations and budgets, but low supply and strong demand should see prices remain relatively steady in the coming months.”

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