Perth is the new housing boom town

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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:

CoreLogic rebound

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:

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28-day price growth

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:

PropTrack home values
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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:

ANZ price forecasts

NAB also predicts that Perth will post the strongest price growth in Australia in 2024:

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NAB house price forecasts

The next chart shows that despite the recent boom, Perth housing remains historically cheap relative to the rest of the nation:

Perth house price gap
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Perth home values are also being stimulated by record net overseas migration, alongside strong inward migration from the other states:

WA population change

These factors alone should cause Perth home values to outpace the rest of the nation this decade.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.