Perth house prices spike nearly 16 per cent in a year as affordability pressure looms
Perth house prices have jumped almost 16 per cent over the past year, one of Australia’s strongest-performing housing markets, despite signs momentum is cooling.
Perth house prices spike nearly 16 per cent in a year as affordability pressure looms
Perth house prices have jumped almost 16 per cent over the past year, one of Australia’s strongest-performing housing markets, despite signs momentum is beginning to cool.
According to new data from property analytics firm Cotality, Perth dwelling values rose 1.9 per cent in December, taking annual growth to 15.9 per cent, increasing the city’s median house value to $983,068.
Perth’s median house prices have increased this year.Credit: Cotality
The annual increase added approximately $129,000 to the median value of a Perth dwelling.
The gains outpaced Sydney and Melbourne, where values dipped slightly over the month, and placed Perth behind only Darwin (26.3 per cent) for annual capital city growth.
Perth areas that have increased the most. Credit: Cotality
The subtle decline in values across Australia’s two largest cities marked the first month-on-month decline since January last year, prior to rate cuts which commenced in February.
Within greater Perth, the strongest annual gains were recorded in Belmont-Victoria Park (20 per cent), Armadale (19.5 per cent) and Serpentine-Jarrahdale (18.9 per cent), reflecting continued demand for more affordable outer suburbs.
Perth’s growth was mirrored across regional Western Australia, where dwelling values climbed 16.1 per cent over the year, also among the highest regional results nationally.
Albany (23.7 per cent), the Mid West (19.4 per cent) and the Pilbara (18.9 per cent), led the charge.
Cotality research director Tim Lawless said while Perth remained a standout, the pace of growth was beginning to ease nationally as affordability pressures bite.
“Renewed speculation that the rate-cutting cycle is over and the next move from the RBA could be a hike, has dented housing confidence,” he said.
“A ‘higher for longer’ setting on interest rates, alongside a resurgence in cost-of-living pressures and worsening affordability pressures, looks to have taken some heat out of the market.”