- Perth property market slowing, but supported by strong state economy and population growth.
- Transaction levels ease after peak sales surge in late 2023.
- Buyers increasingly shift from houses to affordable, well-located apartments.
The gradual wind-down of the Perth property boom is continuing, although the strength of the Western Australia economy means there is unlikely to be any dramatic decline in prices.
Analysis by Hotspotting shows transaction levels have eased off within the Greater Perth market after a huge flurry of sales over the previous two years.
According to Hotspotting General Manager Tim Graham, it is more a case of the pace of price growth diminishing month by month than prices declining.
“The peak of the Perth boom, in terms of sales activity, was late in 2023, and it has been slowly but steadily reducing since then,” he said.
“Despite this, the Perth market remains solid and resilient.”
Mr Graham stated that one of the key tools used by Hotspotting to identify potential future price growth was analysing transaction levels and determining if they were increasing. Rising transaction levels were considered a precursor to property price growth.
“Our latest national survey of sales activity showed there were more Perth locations with slowing transaction levels than growing levels,” he said.
This was the weakest outcome of all the market jurisdictions in the nation (alongside Regional WA) – but it is well short of a disaster.
Tim Graham, Hotspotting
Mr Graham said, fortunately, the Western Australia market continues to be underpinned by a strong state economy and major population growth.
Locations that have experienced drops in sales levels include the City of Rockingham and the Kwinana LGAs.
Mr Graham stated that those areas were once viewed as very affordable at the beginning of the Perth market’s upcycle; however, after three years of price growth, that was no longer the case.
The Greater Perth municipalities, including the Joondalup, Wanneroo, and Swan LGAs, had been resistant to the general slow downturn trend.
The City of Perth had the strongest market in terms of transaction levels, especially in its unit market, which continued to attract strong buyer demand.
“This is part of an overall trend where buyers seeking affordable options have switched from houses to well-located apartments, which is also part of a highly significant national trend,” Mr Graham said.
