As we wrap up another dynamic year, I am excited to share insights into the Perth rental market for 2024 and offer a glimpse of what lies ahead in 2025. This year has been one of remarkable growth and change, setting the stage for continued opportunities in the coming year.
Reflecting on 2024
The Perth rental market has once again proven its strength and adaptability. Despite economic challenges and evolving market conditions, Perth has maintained its position as one of Australia’s most robust property markets. With strong demand for housing and steady population growth, the city remains a standout performer.
Market Highlights:
Steady Rental Price Growth: Perth’s median weekly rental price reached $650 for houses and $620 for units by December. This reflects an impressive annual growth rate of over 15% for houses and 24% for units.
High Demand, Tight Supply: Rental properties continued to be in high demand, with the average time to lease a property at just 15 days. While new listings have increased slightly, the market remains undersupplied, keeping competition fierce for prospective tenants.
Significant Property Price Growth: Perth’s median home price rose by over 20% to $773,000 by October, representing the strongest capital city price growth in the country. Since March 2020, Perth home prices have surged by 79%, underscoring the city’s long-term appeal for investors.
Looking Ahead to 2025
Forecasts for 2025 remain highly optimistic, with Perth expected to lead Australia’s housing market. According to SQM Research’s Housing Boom and Bust Report, housing prices in Perth are projected to rise by 14-19%, driven by key factors such as:
Potential Interest Rate Cuts: Anticipated reductions of 0.25-0.50% in interest rates by mid-2025 could reinvigorate buyer demand and increase borrowing capacity, particularly in regions currently experiencing tight conditions.
Infrastructure and Connectivity Projects: Developments like Metronet are enhancing accessibility and attracting growth to areas in Perth’s outer north and south-eastern corridors.
Sustained Population Growth: Western Australia continues to experience strong population inflows, further bolstering demand for housing and rental properties.
Stability in the Rental Market
While rental prices have shown steady growth, the number of days to lease a property has stabilized at 15 days, suggesting a healthy balance between supply and demand. This stability indicates a maturing market that will continue to deliver value for both investors and tenants.
Conclusion
The Perth property market has once again demonstrated its resilience and potential for growth. As we move into 2025, the combination of strong population growth, infrastructure development, and a possible shift in interest rate policies will create a favourable environment for both investors and renters
If you would like to get in touch with Joanne to discuss investment opportunities, please email info@finbartorent.com.au
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