Perth is the new housing boom town


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:

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

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:

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

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.

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.