Perth smashes house price records, crosses $700k median for first time
Perth’s housing market is leading the nation to record a double-digit increase over the year and set a new record median of $713,811.
Domain’s House Price Report for the September quarter shows Perth house prices lifted 3 per cent over the quarter, an annual change of 10.4 per cent.
Adelaide and Perth recorded the highest price gains over the quarter and were the only capital cities where house prices were at an all-time high.
Domain chief of research and economics Nicola Powell said if mortgage rates weren’t so high, price growth would be even faster due to the chronic undersupply of housing in WA.
“Perth remains severely undersupplied,” she said.
“The housing market continues to benefit from a positive flow of net interstate migration, record levels of overseas migration and being Australia’s tightest city rental market.”
Leading the charge, Parmelia house prices skyrocketed 20.8 per cent over the year to a median of $392,500, while Bullsbrook clocked similar gains to reach a median of $525,000.
House prices were up 19.6 per cent in Leederville (a median of $840,000) and 18.3 per cent in Churchlands (a median of $1.42 million).
Herron Todd White director Chris Hinchliffe said last year, first home buyers could pick up a four-bedroom, two-bathroom home in the lakeside suburb of Edgewater for under $700,000, but now needed to ease their expectations, with the same price only buying them a three-by-one.
He said they remained eager to buy but continued to face challenges.
“It’s not uncommon for properties to not even be presented to the local home buyer market, with many properties being offered to eastern states-based buyers’ agencies off-market,” he said.
“With the rental market extremely tight and the pressure of properties selling quickly there are first home buyers pushing their budgets even higher to the $600,000 to $700,000 bracket to secure quality, move-in ready products, battling it out with investors and older-generation downsizers.”