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WA Property Market Update June 2024

As we review WA property market data from June 2024, the current landscape sees homeowners, renters, and investors alike encountering a dynamic scenario shaped by shifts in affordability, value, and economic pressures. A detailed look into both residential sales and rentals reveals how these factors are influencing the market, providing crucial insights for potential buyers, sellers, and renters. What opportunities exist? Is now the right time to enter the market? Let’s explore…

WA Property Market Update June 2024 – Residential Sales

In the Perth property cycle, as analysed by Performance Property Advisory, both houses and units are currently situated in a “Buy Value” phase. This designation signifies an excellent opportunity for investment, with macroeconomic fundamentals poised to support growth in the short to medium term. Houses are beginning to shift towards “Buy Momentum,” indicating they are about halfway through their growth cycle with increasing demand. The current median house price is $655,000, and units are priced at $440,000. In terms of market activity, the number of days properties stay on the market remains low at 8 days, comparable to the previous quarter. Current listings total 2,863, a slight decrease from 2,993 in March, indicating a somewhat stabilising trend but with continued tight supply. Sales have been robust with 589 houses, 192 units, and 121 parcels of land sold in the last recorded week, showing a vibrant market with decreasing but still limited inventory compared to last year’s 5,458 total listings in the same period. Notably, top selling suburbs include areas both north and south of the river, highlighting widespread demand across the region.

WA Retail Property Market Update June 2024 – Rentals

The rental segment of the WA property market is experiencing upward pressure on prices with the median rent for houses rising to $650 per week and units to $600 per week, up from $640 and $580, respectively, in the previous quarter. The median days to rent a property have increased slightly to 17 days from 15 days, suggesting a slight easing in the rental turnover rate. Nevertheless, the rental market remains competitive, as evidenced by the increase in total rental transactions from 677 to 689 in the past four weeks compared to the same period last year. The rental stock has slightly increased, with 1,803 houses and 721 units currently available, compared to 2,191 total listings last year, indicating a more accommodating market for renters. Despite these numbers, the high cost of renting continues to impact affordability, with the average rent consuming 37% of the median income. This figure marks a significant increase from the less than 30% observed between 2014 and 2021. Additionally, Perth stands out in Australia for its rental yields, with houses yielding 6.2% and units 6.9%, far surpassing other major cities and accentuating its appeal to investors looking for substantial returns – assuming they can find a property to purchase in the first place!

Looking Ahead

The Western Australian property market as of June 2024 illustrates an environment of growth for both residential sales and rentals. Economic factors continue to press on affordability and market values, creating challenges for all parties. For those looking to enter the market, timing is critical, especially in a phase where growth is anticipated. Add to that a stagnation in interest rates, and many borrowers reaching the end of their fixed interest rate period, refinancing is on the cards for may West Aussies. If this is something you’re ready to explore, to ensure you’re getting the best home loan for your needs, please reach out to the Finance team at McKinley Plowman on 08 9325 2411 (Perth), 08 9301 2200 (Joondalup), or via our website.

Data From: Performance Property Advisory Perth Market Report; REIWA Insights – Perth Metro

written by:

Paul Moran

Paul has over 35 years of experience in finding financial solutions for homebuyers, investors and business owners.
A licensed broker and member of the Mortgage & Finance Association of Australia (MFAA), Paul’s extensive experience includes 20 years with a major bank, seven of which were as commercial banking manager.
Paul delivers a holistic financial solutions to achieve the best possible outcome for a client’s personal or commercial lending needs. Paul also provides a comprehensive financial consultancy to business owners on commercial, equipment and invoice finance.