Market Wrap February 2024... | MGP Property Skip to main content

Looking at the February 2024 sales data, it is abundantly clear that Perth has cemented itself as the top performing capital city in Australia’s property market, significantly outpacing the other cities.

The latest market analysis reveals a marked disparity between Perth and other Australian cities in terms of property price growth. While the national average increased by a modest 1.3% over the past three months, Perth experienced a remarkable 5.2% increase in the same timeframe, further cementing its lead with a 3.4% growth since the start of 2024. This swift growth trajectory within just two months is part of a larger trend, as CoreLogic highlights an 18.7% growth in Perth’s property prices over the last year, outshining all other capital cities. This continuous upward movement has pushed Perth’s median house values to new heights, reaching $687,000.

Despite a slight uptick in property listings, with REIWA reporting 3,962 properties available for sale, the market remains heavily skewed towards sellers. This is due to demand far exceeding supply; a balanced market would require say around 12,000 listings. The Perth’s market is further highlighted by a substantial 34% increase in total sales from the previous month, showcasing a robust stock clearance rate of 21% in February.

The City of Melville has mirrored this upward trend, with the median house price climbing to $1.1 million. There was an increase in sales, from 115 in January to 140 in February but with only a slight increase in property listings from 188 to 205. Looking at listing numbers by suburb, Applecross witnessed an increase in listings with 72 properties for sale, while Mount Pleasant, Melville and Ardross experienced reduced supply with 47, 8, and 12 properties for sale, respectively. Other suburbs remain stable with 12 listings in Ardross, Attadale 20, Bicton 14, Booragoon 14, Alfred Cove 5, and Myaree 3.

Amid moderating inflation, there’s a prevailing sentiment that the Reserve Bank of Australia (RBA) will maintain the current interest rates in its upcoming March meeting. Although a rate cut seems improbable, the stability of interest rates is in my view still deemed a positive outcome for the Perth market.

Looking forward, the initial forecasts of 8-10% growth for 2024 appear conservative given the market’s performance so far in 2024. The resurgence of buyer interest in land, evidenced by some recent competitive land sales, hints towards upward momentum for land prices this year. This trend is expected to persist, given the ongoing challenges in addressing the shortage of existing homes.

For those keen on further insights and updates on Perth’s property market, stay connected through my social media channels (Insta &  Facebook).