Perth has become Australia’s housing boom town.
CoreLogic’s daily dwelling values index shows that Perth has recorded the largest house price rebound after values nationally bottomed in late January 2023:
Perth dwelling values have rebounded by 18.7% from late January 2023, easily beating the 11.0% increase across the five major capital cities.
Perth values also continue to rise at a swift pace, growing by 1.6% over the past 28 days, versus 0.5% growth at the 5-city aggregate level:
Separate PropTrack data to end-January showed that Perth dwelling values soared by 15.4% annually, to be 50% higher than the start of the pandemic in March 2020:
On Monday, ANZ Bank updated its house price forecasts and now expects Perth values to rise by 10-11% this calendar year, easily the fastest growth in the nation:
NAB also predicts that Perth will post the strongest price growth in Australia in 2024:
The next chart shows that despite the recent boom, Perth housing remains historically cheap relative to the rest of the nation:
Perth home values are also being stimulated by record net overseas migration, alongside strong inward migration from the other states:
These factors alone should cause Perth home values to outpace the rest of the nation this decade.
