Western Australian property market predictions for 2024: Experts forecast continued strength for Perth housing market

• Home prices forecast to grow another 8% in 2024.
• Apartment and unit market not immune from price growth.
• No cash rate cuts are forecasted until the end of 2024.

The Western Australian housing market has endured another roller coaster of a year, marked by sticky inflation, housing affordability challenges, new government policy, a continued slew of builders going bust, more interest rate hikes, elevated levels of immigration, an ongoing and severe shortage of housing, and ongoing and high volumes of demand.

So begs the question what will 2024 have in store for the Perth real estate market, from renters to buyers, lessors and sellers.

The Property Tribune spoke to a broad cross section of the Western Australian property market to delve into what experts are forecasting for the local property market next year.

Perth asking prices

The general consensus across experts who exclusively spoke with The Property Tribune was that the Western Australian property market is predicted to continue observing elevated levels of demand and ongoing price surges. The Perth property market forecast is also positive for those waiting with bated breath for interest rates to finally be cut, bearing potentially good news for first home buyers and those looking to upsize, downsize, or just need a change of scenery.

Perth listings

Perth property prices forecast to grow 8% in 2024

The Perth housing market and Perth rental market both demonstrated robust growth across 2023.

There are strong indications that this will continue into the new year.

Perth asking rents

DV Buyers Agency’s Daniel Brennan exclusively told The Property Tribune that he is optimistic about 2024.

“In 2023, persistent price growth in Perth’s suburbs was observed due to ongoing delays in new housing construction, constraining supply and intensifying population influx into the state.

“This trend is expected to persist in 2024, with an anticipated 8% average increase in Perth house prices, underpinned by the potential reduction in interest rates.”

The 8% Perth house price forecast for 2024 is a small dip from the 10.3% to 10.8% price growth recorded in the market this year.

Momentum Wealth managing director, Damian Collins, previously told The Property Tribune that the Perth house price forecast was for between 8% and 10%.

At a Housing Industry Association (HIA) WA event earlier this year, HIA chief economist, Tim Reardon said that the Perth house price outlook was as much as 30% over the next few years.

Apartment and unit prices to also soar

Perth unit prices and Perth apartment prices are also expected to lift substantially across 2024.

Key Performance Real Estate’s James Yeoman exclusively told The Property Tribune that this year’s strong price growth across the Perth apartment market and Perth unit market is forecasted to continue into the new year.

“In the latter half of 2023, we witnessed a notable increase in the prices of units and strata properties, particularly two-bedroom villas in Tuart Hill, Joondanna, and Yokine.

“Anticipating a carryover effect into 2024, we project heightened activity among buyer’s agents, propelling prices for one-bedroom units and, notably, two-bedroom units, as demand escalates from accommodation-seeking first home buyers and owner-occupiers.”

Resource sector to drive the regional Western Australian property markets

While each state in the real estate industry operates within its unique cycle, regional Western Australia is anticipated to mirror trends observed in metropolitan areas.

REIWA CEO, Cath Hart, told The Property Tribune that:

“The growth in regional areas, particularly the North-West, is driven by employment needs arising from significant investments in infrastructure and expanding organisations.

“The resource industry is expected to propel house and rent prices in the North-West, with Bunbury showing promising growth owing to its affordability, proximity to Perth, diverse employment opportunities, and accessibility to major mining sites.”

Hart expects tight conditions in regional markets to persist in 2024, foreseeing innovative solutions by employers to address housing shortages for employees.

“Based on current trends, the North-West rental markets are likely to experience the strongest rent price growth,” Hart predicted.

Cash rate cut forecast for late 2024

Since May 2022, thirteen interest rate hikes, eight in 2022 and five in 2023, have been implemented by the Reserve Bank of Australia (RBA).

Loan Market Ellenbrook’s Brett Richardson predicts that borrowers will be exploring refinancing options as the cash rate stabilises in 2024, and interest rate cuts are more likely in December than earlier in the year.

“The increase in the cash rate from 3.10% to 4.35% in 2023 posed challenges for homeowners and aspiring first-home buyers. As we enter 2024, economists from the Big Four suggest the cash rate is nearing its peak.

“While some anticipate another rate hike in 2024, rate cuts may not materialise until at least December.”

“This potential stability in 2024 could prompt borrowers to explore refinancing options to reduce monthly repayment costs, while first home buyers may still benefit from government guarantee schemes available until June, pending renewal in the Budget,” added Richardson.