No end in sight to Perth’s house price boom


PropTrack data shows that Perth home values have surged by 64% since the outbreak of the pandemic in March 2020.

Perth home values

According to CoreLogic, rental inflation in Perth is also the highest in the country, rising by 13.5% (houses) and 14.7% (units) in the year to May.

CoreLogic rents

Source: CoreLogic


Domain has released its house price forecasts for the 2024-25 financial year, which tips that Perth will once again lead the nation, recording value growth of between 8% and 10% over the year:

If Domain’s forecast comes to fruition, Perth’s median house price would rise to a record $856,000, costing $78,000 higher than current prices.


Earlier this month, NAB also released forecasts showing that Perth dwelling values would lead the nation, with values rising by 13.7% in 2024 and by a further 6.2% in 2025:

NAB house price forecasts

The boom in Perth home values is being supported by turbo-charged population growth:

Population growth rates

Western Australia’s population grew by 3.3% in the year to December, well above the national increase of 2.5%.

High net migration from overseas and interstate has fueled this population boom.


Despite the recent price boom, Perth housing remains relatively affordable to purchase, as illustrated below by PropTrack:

Australian median home values

Due to high mining royalties and Western Australia’s GST windfall, Perth’s economy is also doing well.


Accordingly, there is more upside for Perth home values and rents.

A word of caution, however. Perth’s housing market has always been boom-bust.

When the iron ore market crashed from 2014 to 2019, Perth home values declined by 18% in nominal terms and significantly more in real terms.


The next commodity price crash could, therefore, cause another significant decline.

That said, Western Australia now has a GST floor, which should help to cushion the economic impact of falling commodity prices.

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.