In January, Perth’s home values continued to rise, but the pace of growth has clearly slowed. The city’s growth rate over the rolling quarter now lags behind Brisbane and Adelaide, reflecting a steady loss of momentum, but this could all change quickly!
Corelogic reported that nationally, January saw dwelling values remain steady with just a -.03% drop, which was a culmination of mixed results among the capital cities. ACT joined Melbourne and Sydney’s downward trend, while Hobart remained steady, and Perth, Brisbane and Adelaide recorded increases. Adelaide over-took Perth as the strongest performing capital city in the nation with a .7% increase in January, while Perth recorded a very modest 0.4% increase. This marked a 1% rise over the past three months and 17.1% growth over the past year.
In contradiction to Corelogic, REIWA reported a 1.4% rise in Perth’s median house price over January 2025. By the end of January, REIWA reported an increase in listings, with 5,494 properties for sale, reflecting a 27.56% increase from December’s end but more significantly, a 42.33% increase compared to the same time last year. It was a similar result for sales activity with an increase from December to January, but still below November’s levels. This monthly growth in supply and decline in sales was expected given the seasonal adjustment for December, but we are still below November levels. Next month will be more revealing regarding a possible increasing supply trend.
The City of Melville experienced another month of price growth in January, with REIWA reporting a 3.08% rise in the monthly median house price, reaching $1,340,000. It’s the greatest single month price jump we’ve seen since January 2024. However, total listings in the area saw a 10.7% increase from 176 in December to 195 listings in January. Sales activity also declined in January by 20.8% with only 91 properties sold, affecting the stock clearance rate reducing which dropped from 40% in December to 32% in January. Again largely due to the seasonal effects of December.
Local suburb data from realestate.com.au showed a 4.6% increase in available listings at January’s end with noticeable increases in stock levels in Bicton, Melville, Mount Pleasant and Myaree, Attadale saw a sharp decrease in listings, while Alfred Cove, Applecross, Ardross, and Booragoon remained steady.
We said 2025 would be an interesting year. This is even more clear with some up and down stats in January and given the widely expected interest rate cut this month, we could be in for an exciting Q1 for 2025. For now, the data has not provided any clarity towards short term market direction, but we do expect we will have a better view on what is likely in the short-term following February.
