Outer suburbs drive Perth housing boom as city hits $775k
Dwelling prices in Perth have continued to rise in April, up 20 per cent year-on-year, with suburbs in the greater region recording the bulk of the increase.
In April, dwelling prices in Perth increased across the board, according to Real Estate Institute of Western Australia’s (REIWA) latest property market performance report.
Data showed that the median house price in the City of Light rose by 1.1 per cent in April to $775,000, up 19.2 per cent from the same period last year.
Similarly, median unit price increased by 1.7 per cent to $525,000, recording a 20.7 per cent growth compared to April 2024.
Despite dwelling prices continuing to rise across the board, REIWA president Suzanne Brown said the greater region recorded the bulk of the increase, while conditions fluctuated in metropolitan suburbs.
“While the majority of Perth suburbs continue to record increases in their median house sale price, some have shown stability over the past few months and a few are starting to record slight declines,” Brown said.
“These changes may be more reflective of sales in slightly lower price brackets.”
She encouraged sellers to properly analyse the market before putting their property up for sale to ensure realistic expectations and a fair price.
“We are occasionally hearing reports from members about properties being sold for less than the asking price but this depends on a number of factors, such as location, presentation, realistic initial pricing, and local levels of competition and buyer interest.”
Over the month, Applecross recorded the highest growth and saw house prices rise by 3.8 per cent to $2,700,000, followed by Duncraig up 2.5 per cent to $1,240,000, and Hillarys rounded the top three with a 2.3 per cent growth to $1,450,000.
House prices in Padbury grew by 2.2 per cent to $984,500, while Dianella saw a 1.7 per cent rise to $936,000.
Additionally, the suburbs of Rockingham, Quinns Rocks, Falcon, Woodvale and Girrawheen were also among the top performers, recording a 1.5 per cent increase or more over the month.
While dwelling prices increased in April, listings for sales dropped by 3.8 per cent compared to the previous month.
Brown said the drop in properties up for sale was primarily due to the school holidays.
“Our members report many home owners were planning to wait until the end of the holiday period before putting their home on the market, so we expect new listings to increase over the next few weeks.”
Despite the drop in April, listings were still up 37.9 per cent compared to the same period last year.
In April, houses in Perth took an extra day to sell with a median of 14 days compared to the month prior, but five days slower than April 2024.
Similarly, units also took a median of 14 days to be sold, one day slower than in March and three days slower than the same period last year.
REIWA’s data showed that Queens Park was the fastest-selling suburb, with houses staying a median of five days on the market, followed by Hamilton Hill with six days
The suburbs of Pinjarra, Beeliar, Kelmscott, Kingsley, Yangebup and Yokine all took a median of seven days for houses to be sold.
Brown said the Perth market has changed considerably from the surge of 2024.
“If you know someone who sold a property last year, the chances are it sold at the first home open, with multiple offers received, and for well over the asking price.”
“The rate of population growth is slowing. While there is still strong demand for property, it is not at the levels it was a year ago and the frenzied conditions seen in 2024 have softened,” she said.
Brown said the surge in new listings recorded last year has boosted supply, with the Perth market becoming more consistent since then.
“As a result, buyers have had more choice and have been able to take more time in their purchasing decisions,” she said.
Across rental properties, in April, Perth’s median dwelling rent prices dropped by 1.5 per cent to $670 per week, yet still 3.1 per cent higher than April 2024.
The median weekly house rent fell by 1.4 per cent to $680, while median rent for units remained stable at $650 per week.
“With changing conditions in the market, we expect to see some movement up and down in the Perth median rent price over the coming months,” Brown said.
She said that, similarly to house prices, rental growth varies from suburb to suburb.
REIWA’s data showed that Bassendean recorded the highest rental growth in April, up by 7.7 per cent to $700, followed by Greenfields up 3.6 per cent to $570, and Brabham up 3.1 per cent to $750.
“Median rent prices may decline in areas that are less popular or where there is an excess of supply. In these suburbs tenants may have more negotiating power than they have had in the past few years,” Brown said.
“Even within a suburb, one home may see a rent price increase, while another one nearby may need to have its asking price reduced in order to secure a tenant,” she concluded.