- The state bucked a downward trend seen elsewhere in the country
- Housing preference may evolve with medium/higher density options
- Supply issues persist, requiring collaborative action for resolution
The Western Australian property market has been incredibly resilient this year, with demand remaining strong according to a new report.
The Western Australian Market: Data & Insights Report presented by realestate.com.au, for UDIA WA, found that median prices increased for apartments and houses across the board in Perth and Peel as well as in most regional areas.
REA Group Group Executive Director of Economic Research Cameron Kusher said that WA experienced one of the fastest price growth phases in the state’s history between 2020 and 2021.
“While that growth has moderated due to current market headwinds, prices in WA have shown remarkable resilience and actually recovered ground in 2023,” said Kusher.
Strong growth
According to the report, as of March 2023, the median price of a home in Greater Perth was 30% above March 2020 levels equating to a median price of $608,000 for houses and $415,000 for units.
UDIA WA CEO Tanya Steinbeck said that despite significant headwinds including interest rate rises and supply disruptions, the Western Australian housing market has bucked the downward trend in housing prices we have seen in other parts of the country.
“We have seen the new house and land market navigate a challenging three years following the peak in demand triggered by government stimulus measures in early 2020,” said Steinbeck.
“That has been followed by significant worker shortages, material cost escalations and supply disruptions, capped off by relentless interest rate hikes that have dampened buyer demand.
“Despite those challenges, population growth remains steady and will continue to remain on an upward trajectory, meaning we are expecting continued demand for housing moving forward.”
Median price changes over FY23
| Location | Apartments | House | Land |
| Perth (Central) | +15.5% | +11.9% | -0.9% |
| Perth (North East) | +1.2% | +4.8% | +5.7% |
| Perth (North West) | +3% | +12.9% | +6.2% |
| Perth (South East) | -12.4% | +4.5% | +4.7% |
| Perth (South West) | +8.6% | +7.7% | +11.9% |
| Peel | na | +9.8% | +0.3% |
Source: REA
Views increasing
The report also found that the number of property views and hard leads for new homes on realestate.com.au increased over the first quarter of 2023 and are sitting at the highest levels since March 2022.
Kusher said this is likely a sign of a renewed interest from buyers to purchase new.
“New houses are experiencing the strongest bounce back in views per listing. New unit listings have seen a more modest recovery, which is a reflection of the continued desire from WA buyers for a house over a medium or higher density option.”
Cameron Kusher, REA Group Executive Director of Economic Research
“We may see housing preference evolve over time if more medium and higher density options emerge in and around Perth.”
According to the report, some of the most popular house and land developments last month were in Alkimos and Piara Waters while for units they occurred in Como and South Perth.
Supply still tight
While the resilience of the WA housing market and the likelihood of ongoing demand for housing is a positive sign for the health of the market, Steinbeck said that supply still remains tight.
“There is a lot of work to do to ensure that Western Australia’s housing supply pipeline is sustainable in the long term so that we can adequately deliver the land and housing that our growing population desperately needs.”
“We need to leverage Federal Government funding under the Housing Australia Future Fund and other incentives for the State’s to provide more social & affordable housing supply.
“The private sector stands ready to work in partnership with all levels of government and the community housing sector to bring more affordable housing supply to more Western Australians.”
Steinbeck said all options must be on the table to reduce the cumulative impact and cost of regulation, taxation and overly complex lengthy approvals processes on the delivery of housing supply.
“All levels of government for decades have had their foot on the hose of housing supply, which is now down to a trickle. It’s time to work collaboratively to open up that pipeline.”
