Perth’s housing market is experiencing twin booms, leading the nation in both price and rental growth.
The following charts, compiled by CBA, tell the story.
CoreLogic’s dwelling values index shows that Perth home values rose by 6% in the three months to April, dwarfing the quarterly 1.7% rise across the combined capital cities.
Perth dwelling values have risen 59.3% since the onset of the pandemic, the highest growth in the nation:
CoreLogic data also shows that Perth’s rental market is experiencing the strongest growth in the nation, with annual advertised rents climbing by around 14%:
Rental growth in Perth continues to accelerate, with Perth recording circa 16% annualised growth in the three months to April:
The surge in prices and rents is being underpinned by nation-leading population growth:
Perth’s population grew by 3.3% in the year to September, well above the national increase of 2.5%.
Strong net migration from abroad and from interstate has fuelled Perth’s population growth.
Perth’s economy is currently very strong and the city’s housing remains relatively affordable, despite the recent strong price growth.
Therefore, there is more upside for Perth home values and rents.
However, Perth’s market has always been volatile.
Between 2014 and 2019, Perth property values plummeted by 18% in nominal terms (more in real terms) as the iron ore market crashed.
The next commodity price crash will likely trigger another significant decline.
