Perth recorded the highest percentage increase in median sale price for two-bedroom 'other dwellings' in the September 2024 quarter, according to the latest Real Estate Institute of Australia (REIA) Real Estate Market Facts.
The median sale price for two-bedroom other dwellings, which includes home units, townhouses, flats/apartments and terrace homes, increased 4.1 per cent over the quarter and 24.4 per cent over the year to $510,000.
REIWA CEO Cath Hart said after low growth in 2023, price growth for other dwellings in Perth accelerated in 2024.
"This is a result of the rising demand for other dwellings, which can provide a more affordable entry point to the market than houses, particularly in suburbs close to the CBD," she said.
"We have also seen the demand for other dwellings reflected in the median time to sell, which decreased significantly over the year."
"However, despite the strong growth, other dwellings in Perth remain among the most affordable in the country, based on median sale price. Only Darwin was more affordable."
Three-bedroom houses also performed well over the quarter and the year.
In the three months to September, Perth's median house sale price increased 0.9 per cent to $752,000. Adelaide recorded the strongest quarterly growth at 1.4 per cent.
Annually, Perth recorded the strongest growth in the country, with the median house sale price rising 25.3 per cent.
According to the REIA's Housing Affordability Report, WA remained the most affordable state for home owners, with the proportion of family income required to meet monthly loan repayments in WA increasing 0.2 percentage points to 39.8 per cent in the September 2024 quarter.
Only the ACT (34.7 per cent of family income) and the Northern Territory (31.6 per cent) were more affordable.
Median two-bedroom other dwelling sale prices: Perth and regional centres
Median sale prices for two-bedroom other dwellings rose in Perth Outer (up 8.2 per cent to $460,000) and Perth Middle (up 3.6 per cent to $518,000) in the September quarter but declined in Perth Inner (down 1.3 per cent to $553,000).
Regional WA also saw mixed results with median sale prices rising in Albany (up 29.4 per cent to $440,000) and Broome (up 8.3 per cent to $455,000), but declining in Bunbury (down 15.6 per cent to $380,000).
In the 12 months to September, the median sale price for two-bedroom other dwellings saw growth in Perth Outer (up 31.4 per cent), Perth Middle (up 27.2 per cent) and Perth Inner (up 11.7 per cent).
The regional centres also recorded increases over the year: Bunbury (up 28.8 per cent), Albany (up 28.7 per cent) and Broome (up 11.0 per cent).
Median three-bedroom house sale prices: Perth and regional centres
The median sale price growth for three-bedroom houses increased in Perth Outer (up 2.1 per cent to $715,000) and Perth Middle (up 0.6 per cent to $865,000) but decreased in Perth Inner (down 4.1 per cent to $1,535,000).
In the regions, prices rose in Broome (up 8.6 per cent $740,000) and Bunbury (up 0.4 per cent to $600,000), while they declined in Albany (down 4.1 per cent to $550,000).
Over the year, the median sale price rose in all metropolitan areas: Perth Outer (up 27.7 per cent), Perth Middle (up 21.8 per cent) and Perth Inner (up 13.7 per cent).
It was the same story across the regions with prices rising in Bunbury (up 27.7 per), Broome (up 14.7 per cent) and Albany (up 10.0 per cent).
Rental market
Median weekly rent
Median rent prices for three-bedroom houses in Perth rose 1.6 per cent to $630 per week in the September quarter and 14.5 per cent year-on-year.
The median rent for two-bedroom other dwellings remained stable quarter-on-quarter at $600 per week. This was 9.1 per cent higher than 12 months ago.
Ms Hart said after several years of very strong price growth, rent prices in Perth were showing extended periods of stability.
"The frenzied conditions seen in the rental market over the past few years are easing," Ms Hart said.
"We've seen demand moderate, and supply increase. As a result, according to www.reiwa.com data, rent prices have recorded periods of stability and the annual rate of price growth has slowed."
Median three-bedroom house rent prices: Perth and regional centres
Median rent prices for houses rose in all metropolitan areas compared to the previous quarter: Perth Inner (2.5 per cent to $820 per week), Perth Outer (up 1.6 per cent to $650 per week) and Perth Middle (up 1.4 per cent to $700 per week).
Results were mixed across the regions: Albany (up 5.1 per cent to $520 per week), Bunbury (unchanged at $600 per week) and Broome (down 25.0 per cent to $900 per week).
Over the past year, the median rent prices rose in all Perth sub-regions: Perth Outer (up 14.0 per cent), Perth Middle (up 12.9 per cent) and Perth Inner (up 9.3 per cent).
Regionally, Albany (up 15.6 per cent) and Bunbury (up 9.1 per cent) recorded increases in their median rent price, while Broome saw a decline (down 10.0 per cent).
Median two-bedroom other dwelling rent prices: Perth and regional centres
Median weekly rent prices for other dwellings remained stable across all metropolitan areas compared to the June 2024 quarter: Perth Inner ($650), Perth Middle ($600) and Perth Outer ($550).
In regional WA, all three regional centres recorded declines over the same period: Albany (down 40.0 per cent to $450 per week), Bunbury (down 13.6 per cent to $475 per week) and Broome (down 3.3 per cent to $725 per week).
Over the year, all metropolitan areas recorded increases in rent prices: Perth Outer (up 17.0 per cent), Perth Middle (up 15.4 per cent) and Perth Inner (up 12.1 per cent).
It was the same across regional WA: Bunbury (up 31.9 per cent), Broome (up 11.5 per cent) and Albany (up 5.9 per cent).
Vacancy rate
Perth recorded the largest improvement in vacancy rate across the country, rising 1.1 percentage points from 0.5 per cent in the June quarter to 1.6 per cent in the September quarter.
Ms Hart said the increase reflected the changes in the Perth rental market over 2024, particularly the growth in supply.
"Over the second half of the year, we've seen more completed investor-owned new builds come to the market, which has boosted rental supply," she said.
"However, Perth's vacancy rate remains below the 2.5-3.5 per cent REWIA consider a balanced market, and conditions are still competitive for tenants."
