Perth's housing market has once again demonstrated its resilience and strength, recording the highest monthly growth rate of any Australian capital city in April. According to the latest CoreLogic Home Value Index, property values in the Western Australian capital climbed by a robust 1.8 per cent over the month.
Perth Leads National Growth Amid Varied Market Conditions
This significant increase solidifies Perth's position at the forefront of Australia's property market performance. The city's annual growth rate now stands at an impressive 21.1 per cent, showcasing a sustained period of substantial value appreciation. In contrast, the combined capitals index across Australia rose by a more modest 0.6 per cent in April, highlighting Perth's exceptional performance.
The data reveals a tale of two markets on the eastern seaboard. Adelaide followed Perth with a respectable 1.4 per cent monthly increase, while Brisbane saw a 0.9 per cent rise. However, the larger markets of Sydney and Melbourne experienced much softer conditions, with growth of just 0.4 per cent and 0.1 per cent respectively. Canberra's values remained flat, and Hobart's market continued to correct, dipping by 0.6 per cent.
Affordability and Demand Fuel Perth's Momentum
CoreLogic's research director, Tim Lawless, pinpointed the key drivers behind Perth's standout results. He attributed the city's ongoing growth to a combination of relative affordability compared to eastern states and persistently strong demand. Despite interest rates sitting at a 12-year high, Perth's median dwelling value remains significantly lower than in Sydney and Melbourne, attracting buyers and investors.
"Perth's housing values continue to rise at a solid pace, up 1.8 per cent in April, the highest growth rate across the capital cities," Mr Lawless stated. He emphasised that the city's affordability advantage is a major factor, even as purchasing power is eroded by high interest rates and cost-of-living pressures elsewhere.
The report also noted that Perth's rental market remains exceptionally tight, with vacancy rates hovering near record lows. This rental crisis is adding further upward pressure on purchase prices, as investors see strong yield potential and tenants consider buying to escape the competitive rental environment.
Broader Trends and Future Outlook
Nationally, the pace of home value growth has decelerated. The 0.6 per cent rise in April was the smallest monthly gain since December 2023. Tim Lawless suggested this slowdown is likely a reflection of persistently high interest rates, worsening affordability, a gradual rise in advertised stock levels, and low consumer sentiment.
"With unemployment tracking close to historic lows and a large pipeline of overseas migration, housing demand is likely to remain high," Mr Lawless commented. He indicated that these demographic factors should help to keep a floor under housing prices across most regions, even as growth moderates.
For Western Australia, the outlook remains positive. The state's economy, buoyed by the resources sector, continues to support jobs and population growth. This economic backbone, coupled with Perth's enduring affordability edge, suggests the city's property market may continue to outperform its eastern counterparts in the near term, albeit potentially at a more sustainable pace than the heated gains seen over the past year.
